Chapter 3: Internal Analysis

Chapter 3: Internal Analysis

Nordstrom has numerous strengths leading them in the retail fashion industry. One of their strengths is creating high quality products that customers are constantly coming back to buy. Nordstrom primarily focuses on the segment of higher-end consumer merchandise. Although they have become an expert in this segment of the market, this can also be seen as a disadvantage. Many consumers know and love the brands that Nordstrom chooses to sell. However, these brands are oftentimes expensive and out of an ideal price range for buyers. Nordstrom identifies this as an internal weakness; hence, Nordstrom is continually opening more divisions of Nordstrom Rack to appeal to a larger segment of consumers. Nordstrom Rack is a discounted division of Nordstrom offering the same quality products at a fraction of the price. This decision not only targets a new area of potential growth, but it also creates a similar store where deals are the focus. Nordstrom's strategy to offer the same quality merchandise at a discount has lead to growth and created a stronger brand. This exposer to a create segment of the market has been a huge strength of Nordstrom and demonstrated to be a wise strategic move. 

In addition to growth of Nordstrom Rack nationwide, Nordstrom has also chosen to widen the designers and brands offered at Nordstrom. In the ever-changing world, we are becoming more connected with people everywhere. Nordstrom recognizes this as a way to immerse Nordstrom with a more diverse line of brands to appeal to more international consumers. TopShop, a popular UK brand that is popular among millennials has partnered with Nordstrom to widen both of their customer bases. This idea of a "shop-within-shop" not only helps TopShop spread their brand, but also does the same for Nordstrom. This strategic decision has to potential for Nordstrom to gain more international customers, but also gain a larger access into the millennial consumer segment. What Nordstrom once analyzed as a disadvantage from a narrow customer focus, it now appears to have gained and upheld customer loyalty to a new generation and the consumer segment of shoppers both internationally and within the US. 

Chapter 2: Analyzing the External Environment


In the past few months, the political realm seems to have found a source into all topics and conversations. Particularly, Nordstrom has been in the news revolving just that. Nordstrom's recent decisions to pull the line "Ivanka Trump" has sparked attention from news sources across the board. Nordstrom claims that the dropping of the line has to do with sales, not politics. Nordstrom has chosen to analyze the changes in sales and act appropriately in order to keep profitability and growth steady. Although some could see this is a disadvantage to Nordstrom, I think this has been an overall advantage to Nordstrom as a company. The majority of the public are paying close attention to Trump's decisions. Nordstrom is now amongst many other brands that have decided to pull Trump owned products from their stores. People feel strongly about supporting companies and stores globally that are taking a stance on his opinions and actions. Not only to existing customers, but also to potential customers, Nordstrom is being talked about everywhere, gaining attention and sales to follow. Regardless of the motives for the halt on the brand, Nordstrom has found its way into the media light. As many companies have been using this presidential election to gain attention, Nordstrom is joining the bandwagon and will continue to benefit from their choice to discontinue the Ivanka Trump line through the forces of the external environment.

Chapter 1: Creating Competitive Strategies

Chapter 1: Creating Competitive Strategies

Nordstrom’s competitive advantage is one of the main reasons for their success over the years. Through many methods, Nordstrom is continually working to benefit the customer in the best possible way. Nordstrom works tirelessly to create an outstanding customer service that not only makes them a leader within the retail industry, but also has the customer leaving happy and wanting to come back more often. Managers and employees alike are constantly putting themselves in the shoes of the customer.  Nordstrom also has a liberal return policy that is decided on a case-by-case basis. This approach gives consumers more opportunity to explain their situation with reasonability and care. This is a huge competitive strategy over other stores with a more conservative approach. Over the past few years, Nordstrom has been working to introduce a variety of new designers. Bringing in new designers has given customers differentiation in styles while still providing the same quality clothing and accessories. This generates a wider customer basis with new products while also the desire for current customers to freshen their style and look for something new. Together, these methods create a sustainable competitive strategies within the market of fashion.

Introduction

 Introduction

Nordstrom is a department store that has been selling clothing, shoes, and accessories to customers for over a century. The department store carries a wide variety of name brands that make shopping for what you need a little more enjoyable. John W. Nordstrom founded Nordstrom back in 1904 as a small shoe store in Seattle, Washington. The company has grown tremendously into nearly 500 stores in North American as well as providing online shopping internationally. Nordstrom has become one of the frontrunner leaders in fashion retail today.

Nordstrom has been a place where my family has shopped for generations. Nordstrom’s continued excellence to serve me as a customer has built loyalty to the company. Particularly lately, Nordstrom has been in the spotlight regarding the news. Not only has it sparked my interest because of my love for Nordstrom stemming far back, but it has also given me a new perspective. As with many brands that I consider myself a customer to, I tend to research before committing. I am excited to extend my focus analyzing Nordstrom though the perspective of strategic management.