Nordstrom Strategy
Eliyahu Metz
Unit 5 Strategy Sign on
1. The company I chose was Nordstrom, one of the biggest fashion retailers around. The kind of industry environment that Nordstrom operates is in a mature industry. This market is totally saturated, as retail stores around the world are ever present. The growth in this market is very low and can only be affected through population increase. As a side point, this retail market also is very affected by the economy and buying power of the people.
2. Because Nordstrom operates in the mature industry it has to try to manage industry competition. The main competitions for this chain are: Niemen Marcus, Bloomingdales, Bergdorf Goodman, and Saks Fifth Avenue. This market is tricky as they are all seemingly offering the same products at the very same price! Nordstrom has taken the route of using their people and their enthusiasm for service to enhance the customer experience and make all the difference in gaining a competitive advantage. The average employee is upbeat and an absolute joy in their soliciting of a particular purchase. When you have such a nice dialogue with a representative you almost feel as if you have to buy the item! Another strategy of Nordstrom is their return policy. They are specialized in the shoe department offering returns on shoes bought in their store forever! That means one can theoretically use a shoe for 5 years and then decide he doesn’t want it anymore and come and return it. The other retailers do not offer this service. Nordstrom can offer this because they possess a Nordstrom Rack store where they offer many refurbished shoes for a fraction of the price. This gives them an immense competitive advantage as a customer who is unwilling to commit to the comfort of a pair of shoes, is given the theoretical option of buying the shoe and if it doesn’t break in correctly, they can return it. This makes their customers come back again and again. 3. I think a new strategy that Nordstrom can use to enhance
Unit 5 Strategy Sign on
1. The company I chose was Nordstrom, one of the biggest fashion retailers around. The kind of industry environment that Nordstrom operates is in a mature industry. This market is totally saturated, as retail stores around the world are ever present. The growth in this market is very low and can only be affected through population increase. As a side point, this retail market also is very affected by the economy and buying power of the people.
2. Because Nordstrom operates in the mature industry it has to try to manage industry competition. The main competitions for this chain are: Niemen Marcus, Bloomingdales, Bergdorf Goodman, and Saks Fifth Avenue. This market is tricky as they are all seemingly offering the same products at the very same price! Nordstrom has taken the route of using their people and their enthusiasm for service to enhance the customer experience and make all the difference in gaining a competitive advantage. The average employee is upbeat and an absolute joy in their soliciting of a particular purchase. When you have such a nice dialogue with a representative you almost feel as if you have to buy the item! Another strategy of Nordstrom is their return policy. They are specialized in the shoe department offering returns on shoes bought in their store forever! That means one can theoretically use a shoe for 5 years and then decide he doesn’t want it anymore and come and return it. The other retailers do not offer this service. Nordstrom can offer this because they possess a Nordstrom Rack store where they offer many refurbished shoes for a fraction of the price. This gives them an immense competitive advantage as a customer who is unwilling to commit to the comfort of a pair of shoes, is given the theoretical option of buying the shoe and if it doesn’t break in correctly, they can return it. This makes their customers come back again and again. 3. I think a new strategy that Nordstrom can use to enhance