Business Line Model Of Nordstrom

Weaknesses - Although Nordstrom has substantial strength, the organization is not without weaknesses. First, although Nordstrom’s has a superior selection in comparison to the majority of other retail clothing companies, their quality also comes at a cost that many consumers are not willing to pay. In a period of economic instability and uncertainty, consumers are turning to online retailers such as Amazon in order to fulfill their clothing needs. Moreover, consumers are looking for more convenient ways of purchasing products and clothing is typically something where overnight shipping is acceptable versus an immediate need. Additionally, another weakness of Nordstrom is the geographic dispersion of their retail locations which are most commonly associated with shopping malls. Coincidentally, shopping malls are also struggling to compete with online retailers, thus Nordstrom experiences less opportunistic walk-in customers. On the same token, the opportunity costs for underserved

The competitive advantage of Nordstrom is that they have extraordinary services, high wages, promotion possibilities, product availability, their image, customer loyalty, and patronizing sales in which source is superior customer service. Their current competitive strategy is broad differentiation strategy where Nordstrom seeks to differentiate their product or offering from competitor in ways that will appeal to a broad range of

The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic

Kohl’s is a family-focused, value-oriented department store and website. Kohl’s mission: “To be the leading family-focused, value-oriented specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly, and exciting.”1 In fact, the last fifteen years Kohl’s has remained true to their mission of operating as a family oriented department store featuring quality, name brand merchandise at an excellent value to its customers.2 By opening other stores throughout the U.S. during years 2000–2010 Kohl’s sales grew by leaps and bounds. Kohl’s strategy again, was simple and true to its core mission: affordable clothing, great customer service, easy to navigate stores

Identify the type of retailer that Nordstrom’s is classified as. Describe the characteristics it shares with other retailers of this type..

They also understand that “when you stop evolving with your customer, you die,” as Jamie Nordstrom, president of stores, has said. They are building fulfillment centers to accommodate online shopping more quickly, use RFID chips to keep their perpetual inventory system for stores and online to share, and invested more into online growth than brick and mortar stores, knowing that this is where their growth is coming from. “Over the next several years Nordstrom expects to derive half of its sales from the Rack and from its online units, versus 38 percent today,” and that’s because “the U.S. Commerce Department estimates that electronic commerce amounted to 6.2 percent of total retail sales in the first quarter of 2014.” Analysts have also been saying Nordstrom has thrived compared to competitors because it is a pioneer in perks like free shipping and also having the unique diversity of products online. (https://nrf.com/news/nordstrom-exec-evolve-or-die) (http://www.luxurydaily.com/nordstrom-integrates-instagram-to-create-shopping-experience/) (http://seattletimes.com/html/businesstechnology/2024313399_nordstromearningsxml.html) (http://wwwiebe.com/nordstrom-customer-service-first/)

Unlike more mainstream oriented department stores such as JCPenney or Macy's the target demographic for Nordstrom is more upscale. Nordstrom markets products that are indented for those with more disposable income. Because of this, they may not sell the same volume of products as JCPenney or Macy's. However, what they do sell is likely priced significantly higher than the more mainstream competition. The major draw of Nordstrom is the quantity and status of the designer brand names that they offer. Some of these brands include Gucci, BOSS, Calvin Klein, as well many more designer labels. In other words, brand names that not would likely be found at the likes of more mainstream department stores. Furthermore, these brands could be considered

Nordstrom’s was established in 1901 and was a retail store for shoes. Among the stores many goals was to offer a wide selection of merchandise with outstanding quality and service. It was twenty two years before they added a second store, and eventually became one of the largest shoe store chains in the United States. They began offering clothing and accessories for the entire family. Right now, they are one of the top luxury retailers with over 320 stores in 29 states in have expanded into Canada. I have chosen to explore the financial health of Nordstrom from 2013-2014 and also compare it to one of its top competitors; Macy’s. Its other competitors in the market are Dillards, and Neiman Marcus.

The greatest stores sell many types of clothes in their stores. The store Nordstrom has various types of clothes sold in their store. The clothes they sell range from underwear to fancy dresses. Also clothes that are for working out and lounge wear. The store Hollister also sells clothes that range from clothing to clothing. They also change it up with the seasons on what they sell, They sell swimsuits in the summer and sell thick jackets in the winter. Their clothing also ranges from dresses to athletic wear. The store Pink also offers various types of clothing in their store. The store sells clothes from underwear to casual wear. Since the store sells different types of clothing it attracts many customers to get different things. The greatest stores sell various

The intensity of rivalry and the threat of substitutes are strong components for J.C. Penney to consider as they continue to strive for increased revenue and market share. Their two primary competitors are Macy’s and Kohl’s, both of whom have fiercely competitive strategies to be strong retail operations. For instance, while Macy’s offers a multitude of promotional deals and is working hard to choose products based upon demographics and geographic segmentation, Kohl’s is attempting to reduce their inventory levels and improve their marketing strategies in order to become a stronger competitor in the department store segment of the retail industry. In order to compete with their competitors, J.C. Penney aims to focus on their previously successful promotions and home department segmentations by bringing in new reputable designers in order to attract a larger customer base. Due to the fact that the intensity of rivalry and threat of substitutes are both moderately strong in the retail department store industry, J.C. Penney ought to be diligent in their implementation of strategies in order to achieve success in the retail business.

Threat: Forces shaping the Nordstrom’s strategy is that it is operating in highly competitive environment, where apparel sold by it is not only competing with large organized departmental chains but, also from small independent boutiques in the U.S. As a result competition has become very stiff in retail

Nordstrom has consistently outperformed every other company that operates in retail, ranging from Target to Macy’s. Shares of stock in Nordstrom have increased by 110% over the past five years, and future projections show that the earnings trend will continue. Nordstrom has been able to create a distinct competitive advantage for many reasons that make their offerings and retail positioning strategy unique. By instituting an outlet business that reaches a different target market, offering a quality product supported by exceptional customer service, and dedicating itself to an omnichannel channel, Nordstrom has differentiated its offering and earned a competitive advantage that has allowed it to become the dominant retailer. First, Nordstrom’s creation of an outlet business, Nordstrom Rack, has been a key element in establishing a competitive advantage for the firm.

The purpose of this memo is to propose an expansion opportunity that will significantly impact Nordstrom business operations and increase stakeholders returns. Furthermore, this opportunity will allow Nordstrom to achieve competitive advantage by successfully operating in developed and growing economies. In addition, Nordstrom will be able to survive the vulnerability of the United States economy through this expansion opportunity. Nordstrom, Inc. is a famous American fashion company that was established in 1901 and sells women, men and children’s apparel, footwear, accessories and cosmetics. In addition, provide other services such as: loyalty programs, credit finance and product fulfillment services (About Nordstrom, n.d.).

We don’t rely on promotions, be it one-day sales, coupons, or “friends of friends” sales. We think our regular pricing has to have integrity.” Fifth is presentation, where the stores image is determined. Nordstrom is known for its relaxed upscale image. Sixth is personnel or customer service, where employees assist customers with their shopping experience. Nordstrom’s personnel are outstanding while they may not serve customers champagne they definitely will go out of their way to assist customers. I think that their personnel have to be the reason behind their success. Whether the story about the customer buying one shoe or the customer returning tires are true or not, gives the current and potential customers a sense of comfort and good customer service beats prices any day.

The product life style of the department store is in the mature or declining phase of its product life style, because of the declining sales. Furthermore, according to estimates, market share has eroded away to 7 per cent, as of 2010, and is far below the desirable rate 15 per cent (Johnson, 2011, p. 3). Also, the brand image is being heavily relied upon and the bottom line is not showing significant increase in the years presented in the journal article. Macy’s is afloat due to a strong management team and the aggressiveness to deal with problems as they arise. For example, continuing to adjust its portfolio of stores, focusing on fashion, and developing private labels in bedding, outerwear, ‘tween’ clothing, increase national advertising and using celebrities. Additionally, Macy’s advertising is combining the national department store image with July 4 and the Annual Macy’s Thanksgiving Parade, which appeals to the American citizen. Solution