The user who would execute the above command should have necessary rights (CREATE USER privilege)
Just creating a new user (or schema) will be useless without privileges. Because you cannot even login without CREATE SESSION granted!
Check the below link for different type of privileges you could grant to a user.
http://ss64.com/ora/grant_
It would be simpler to create a role, assign privileges to the role and grant the role for any user.
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by: ravindran_eeePosted on 2009-08-25 at 04:18:56ID: 25176279
CREATE USER <username> IDENTIFIED BY <password>