Nordstrom Case Analysis
Ranked as one of the premier fashion retailer, offering a wide variety of high end apparel, from shoes to accessories for the entire family, across the country. The Nordstrom family of employees has built a thriving business on the standard of quality, value, selection, and customer service. They are committed to the idea the company was founded on, earning our customers’ trust one at a time. The competitive strategy here is understanding your market, knowing who your customers are and making sure they are satisfied with your products. Nordstrom wishes every customer to have a positive shopping experience in their stores. Price is no object for the typical Nordstrom shopper.
What are the key customer needs that Nordstrom aims to fill? Quality, …show more content…
Why? A high-end department store like Nordstrom has a high end of the implied demand uncertainty scale. The fashion that Nordstrom handles have high product margins that often have high forecast errors and stock-out rates, and once the season is over, these items are sold at deep discounts at their Nordstrom Rack outlet stores. I think they do not experience the demand uncertainty that other companies may face, like the iPod phones, or other tech gadgets, or like the pharmaceutical company bringing a new medicine out.
a.) What are some factors that influence implied uncertainty?
Implied demand uncertainty increases when the customer demands certain products and the quantities required increases, which in turn reduces lead, while the variety of product increases, rate of innovation increases and required service levels increase. On the supply side, we see increased supply uncertainty when the supply source has frequent breakdowns, unpredictable and low yields, poor quality, limited supply capacity, and evolving production processes.
A steel mill requires very large orders and their lead times are measured in months for both implied demand and supply chain uncertainty. This is due to more predictable capability and a distinct schedule for production. Implied uncertainty is high in the steel company, due to the number of sizes needed and the shorter response
What are the key customer needs that Nordstrom aims to fill? Quality, …show more content…
Why? A high-end department store like Nordstrom has a high end of the implied demand uncertainty scale. The fashion that Nordstrom handles have high product margins that often have high forecast errors and stock-out rates, and once the season is over, these items are sold at deep discounts at their Nordstrom Rack outlet stores. I think they do not experience the demand uncertainty that other companies may face, like the iPod phones, or other tech gadgets, or like the pharmaceutical company bringing a new medicine out.
a.) What are some factors that influence implied uncertainty?
Implied demand uncertainty increases when the customer demands certain products and the quantities required increases, which in turn reduces lead, while the variety of product increases, rate of innovation increases and required service levels increase. On the supply side, we see increased supply uncertainty when the supply source has frequent breakdowns, unpredictable and low yields, poor quality, limited supply capacity, and evolving production processes.
A steel mill requires very large orders and their lead times are measured in months for both implied demand and supply chain uncertainty. This is due to more predictable capability and a distinct schedule for production. Implied uncertainty is high in the steel company, due to the number of sizes needed and the shorter response