New Business Concept Assignment Example | Topics and Well Written Essays - 500 words

New Business Concept - Assignment Example They are able to procure furniture at significantly lower price compared to regular purchases of furniture. The nearby resident area where apartment sprawl in numbers are the main target market of Furniture Unlimited. The target market being apartment dwellers belongs in the lower middle class segment and therefore is sensitive to price which is advantageous to Furniture Unlimited because its furniture are more cost effective compared to the regular price of furniture. Its proximity to the market is also advantageous in reducing cost as freight expense will be relatively lower due to the short distance of the business to the market. If the customer is sensitive to cost, they could get the most value to their money because many of the furniture sold are heavily discounted it being a second hand. They also have a choice of low priced brand new furniture with the same advantage of procuring them at lower cost. Furnitures Unlimited will differentiate from its competitors in terms of pricing. Its target market are apartment dwellers who are price sensitive and it will make the business more attractive to this market segment by lowering its price significantly. This can be done by offering more choice of excellent quality second hand furniture at prices which customers cannot compete. Competitors who would engage in price war with Furniture Unlimited cannot compete because the furniture were bought at a discount while theirs were bought at a premium, it being brand new. The company set up shall Limited Liability Corporation to protect its owners from liability in case the company will not be successful. It will be managed both by John and Alex. John being a business major will serve as the general manager and will oversee the business. Alex is a furniture expert who would ensure that the second hand furniture sold to customers are still of excellent