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.