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Nordstrom Global Expansion To Chin A Case Study

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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 …show more content…

Price elasticity is a risk that Nordstrom may encounter since it is often difficult to predict how customers will respond to price changes which can impact a retail item’s rate of sale (Gallo, 2015). The worries over these kinds of arrangements, make these exchange of expenses of shipping merchandise to the buyer for all intents and purposes unthinkable in the whole district which makes the need to make calculated systems to lessen the cost of delivery stock to stores a fundamental. The idea of price elasticity is for the most part estimated at a rate change of how much a buyer will purchase if the cost of an item expands (Gallo, 2015). Besides, neighborhood retailers than to have a superior comprehension of pricing strategies to attract customers to brands that consumers are familiar; for Nordstrom, the organization must offer comparable adaptability and brands to stay aggressive. At last, Nordstrom must have the capacity to assess the flexibility of interest keeping in mind the end goal to make suitable changes expected to remain aggressive and enhance general

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