Is Nordstrom Core Competencies

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

All companies have core competencies that they use to differentiate their company, product, or service from the competition, Sears is no exception. Also, it is common for a company’s core competencies to change, as their industry progresses through phases and shifts its emphasis between product and process innovations (Regis University, 2011), Sears is no exception. Yet, when a company’s core competencies become misaligned and no longer supports their strategic intent the business is in danger of becoming obsolete (Regis University, 2011), as their customers no longer perceive the unique benefits the company has

One of those weaknesses being the high concentration in the state of California. Looking at the coverage of the Full-line and Rack Nordstrom stores, there is heavy presence in the east and west coasts. When comparing Nordstrom to its competitors, Nordstrom has little to no presence in the Mid-West. With such a heavy concentration on a geographic location like California, the economic condition of the location risks a high influence on the company's sales.  Unlike Macy’s, who has just announced the closure of one-hundred stores nationwide, Nordstrom is continuing to increase their store counts, with 20 stores opening in 2017 (five in California).  To grow out of this weakness and not have to produce closures in stores like Macy’s, further concentration in other geographic markets would reduce the economic risk of focusing on California

Nordstrom’s is classified as a department store. They are one of the largest U.S. department store chains, along with Macy’s, JC Penny’s, and Sears. As with the other department stores, each of Nordstrom’s departments are treated as separate buying centers. Each group operates independent from each other, being headed by a buyer who is responsible for the types and quality of merchandise sold, as well as any promotions that may be used. “The company has also benefited from a new computerized inventory system that gives buyers and salespeople the necessary data to make smarter decisions about

Kohl’s prior business plan had shifted from national brands to private labels. National brands have higher selling prices than Kohl’s private and exclusive labels.6 Kohl’s continues to change its business model to capture a larger slice of the retail market by expanding its offerings to reach new customer segments. The Greatness Agenda’s market development strategy also entails expanding Kohl’s beauty and fitness offerings.7 These new offerings build on Kohl’s core business and mission as a family oriented department store featuring quality, name brand merchandise at an excellent value to its customers.

Nordstrom would be described as a department store. They carry a wide variety of goods, such as clothing, accessories, handbags, jewelry and cosmetics like other department stores such as Macy’s, JCPenney and Sears. They have a very high level of service as evidenced in the case study about selling just one shoe and taking a return on snow tires when they never sold auto parts. Their prices are fairly high since they carry mostly high-end brands. These are all traits that department stores share.

Expansion was not the only change Nordstrom implemented to differentiate the company from competitors. By broadening their inventory selection and making it more accessible to their customer base, Nordstrom began setting the bar for all retailers in the industry. With the additions of departments such as juniors and sportswear they began to expand and increase their target market to a younger customer. In the 80’s, Nordstrom modernization continued by adding women and men’s vendors such as Calson, DKNY, Kenneth Cole, and Tommy Bahamma. In May 2000, Nordstrom declared “Reinvent Yourself”

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/)

Nordstrom Company is determined to expand its operations through having wide market coverage. As a result, expanding to Japan would be the main investment to focus on where a number of branches will be opened and start operating in the country. The investment activity will be aimed at increasing the sales amount of the company (Wood, 2008). The investment will also be aimed at expanding the company so that its operations will be global. When an organization operates internationally, there is the possibility of creating networks that will enhance business activities. For Nordstrom, the investment activity will involve taking products and services closer to the consumers so that they will not have to travel to access them. The investment will also ensure that the company maximizes its profits through utilization of all the available resources. The investment opportunity will also ensure that there is the creation of job opportunities for people in

Opportunity: the company should try to expand its horizon by opening its retail outlets in even small townships. Secondly, the retail chain should try to specialize in selected items like home building materials, apparels for children or youth etc. The American family has also changed dramatically in the past decade. Because of this Nordstrom has changed its focus toward the individual. Ten years ago, it would not be a common sight to see moms shopping with their children, or dad’s waiting on the couch by the escalator with their children. Now days, it is almost unheard of to see families walking around the store. Teenagers, women, and men all come alone or with their significant other.

Altogether, Nordstrom has a very unique environment. As I mentioned above, when I visit the store, I always see a diversity of individuals employed. However, there are some missing components such as what I have explained above. I believe if Nordstrom can take my suggestions into consideration, they can build a stronger organizations along with a strong recruitment and selection

Perception is important in an organizational culture. Perception is a “process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.” (Judge & Robbins, 2011) Nordstrom has a culture of autonomy, empowerment, good judgment, and above all good customer service. The leadership communicates the company history and goals through story telling so that employees can understand the importance of customer service to the organization. For example, in 1978 a customer returned a tire to the store, the employee asked for the receipt and returned the money to the customer. When working for Nordstrom as a seasonal employee, the tire story was shared with the new employees and is currently being shared with new employees. What I perceived the organization to be is one of standing by their claim of superior customer service, using good judgment, and the customer is always right.

Core competence is one of the important concepts that were introduced for the understanding of product

Recognizing any success Nordstrom enjoys basic quality of their relationships with customers, employees, vendors and communities. Striving to be a socially responsible company and know that the trust of the customers is to have is not to be taken

The significant microeconomic factors that may impact Nordstrom global expansion to China would involve the state of the economy, industry competition, and the price elasticity of its products. Concerning microeconomics, a downturn or financial subsidence may influence Nordstrom's business since fewer customers are probably going to search for excellent things in their stores and on sites (Nordstrom, 2016). China is still principally overwhelmed by national and local chains much the same as how Department Store retail was in the United State where Nordstrom could set up a successful cross-border e-commerce channel; this ultimately, gives the organization preference to picking up a dependable balance all through China. As a key segment of a