The retail industry is very large and full of many different strategic groups. There is a strategic group that focuses on the finer tastes in life and caters to a more upper-class market. Three dominant members of this group are Saks Incorporated, the Neiman Marcus Group, and Nordstrom. Through e-commerce strategies we will be able to see the similarities and differences in these firms core competencies and business strategies.
Since 1998, Saks Inc. has opened forty-seven new stores. There capital spending has increased to over $1.4 billion and they have upgraded or remodeled the majority of their stores. (Saks pres. P.7) Saks has eighty-eight million dollars of cash on hand and a credit line of seven hundred million dollars. (Saks pres. P.8) Saks Inc has also reorganized into two distinctive groups; the Saks Department Store Group (SDSG) and the Saks Fifth Avenue Enterprise (SFAE). Saks Department Store Group targets the traditional department store. Their motto is "The Best Place to Shop In Your Home Town". (Saks pres. P.4) The Saks Fifth Avenue Enterprise targets the luxury marketplace. Their motto is "The Most Inviting Luxury Experience". (Saks pres. P.4) Both divisions of Saks are better strategically positioned to target their group of customers.
As mentioned, Saks is divided into two divisions. The Saks Department Store Group's strategies are having merchandise incentives, an enhanced shopping experience, and focused marketing. (Saks pres. P.22) These strategies present customers with ideas of what they need to have or what is in style. The idea is a floor presentation that places the customer in a situation where they feel they would lead a better life if they owned the item being displayed to them. (Saks pres. P.23) One of the key aspects of this strategy is product differentiation. Saks stores must be able to offer customers items that they want and need but that are not available at other stores such as Neiman Marcus or Nordstrom. (Saks pres. P24)
Saks second division, Saks Fifth Avenue follows closely to the previously mentioned strategy. Saks Fifth Avenue focuses on luxury products and style. Saks strives to give a customer-focused experience and target certain clients. (Saks pres. P36) If Saks Fifth Avenue sees a product growing, they want to be the first entrant to exploit it. (Saks pres. P.39)
Neiman Marcus is a company that is ninety-five years old that offers high-end luxury goods to customers. (NM pres. P.4) Neiman Marcus makes up three businesses that are in the retail store group. These include Neiman Marcus Stores and Bergdorf Goodman as well as a direct marketing segment referred to as Neiman Markus Direct. (NM FAQ) Neiman Marcus focuses on specialty retail, direct-to-customer, online sales, and brand development. (NM pres P.5) Their retail strategy is severing the affluent customer. (NM pres. P.12) Their merchandise strategies include increased penetration of fine apparel, cosmetics, men's sportswear, and jewelry. (NM pres. P.15)
The final firm is Nordstrom. John W. Nordstrom founded Nordstrom in 1901 in Seattle Washington. (Nord hist.) Today, Nordstrom has grown into a fashion retail chain that is nation wide that offers families the finest shoes and apparel. Nordstrom's philosophy is offering the customer the finest service, selection, quality, and value. (Nord today)
This strategic group of high-end retailers has been in business for many years now. In order to stay competitive, they must they must adopt new technologies and develop e-commerce strategies that utilize low cost equipment and web based transactions.
Saks Inc. has done just that by creating www.saksfifthavenue.com. This is Saks Inc. website that allows e-customers to browse and shop online. It features colorful pictures of merchandise that is arranged into groups by gender and occasion. The website also features a shopping cart so that a...