Chapter 6: Corporate-Level Strategy

Nordstrom constantly uses corporate level strategy to stay competitive within the industry. Mangers across Nordstrom create value through diversification techniques. One of the ways that Nordstrom has diversified over the last few years is through recruiting. Within the last few years, Nordstrom has veered away from using only traditional forms of recruiting, to a wider focus in variety of methods. Particularly, LinkedIn is a popular medium for Nordstrom to promote to potential employees. Nordstrom takes advantage of other tools within LinkedIn, such as the talent blogs. Nordstrom has effectively displayed that there are endless career paths within the retail company. These jobs no longer start and end in retail, but include a new growth in technology and e-commerce positions. Nordstrom’s approach to building a talent pipeline will only become advantageous as consumers gravitate to online shopping. Nordstrom approach to attract employees does not stop at LinkedIn. Moreover, Nordstrom hosts events within the technology environment to demonstrate their effort to recruit the best in the market.

Not only has Nordstrom attempted to reinvent their recruiting strategy, but they have also remained competitive through strategic alliance. Late last summer, Nordstrom began selling Tesla at their stores. This strategic alliance gained attention as the company is widening their market. This integration between the two companies creates potential for Nordstrom to grow. With the introduction of Telsa vehicles at Nordstrom, consumers have to opportunity to test drive on site while shopping if they please. Because of this strategic alliance, Nordstrom has catered to the type of consumer who shop at their stores, and targeted with a new and exciting new type of product. Consequentially, Nordstrom strategy to bring to the newest and top of the line products and methods, creates a competitive advantage within the retail industry.

Chapter 5: Business-Level Strategy

Nordstrom’s business level strategy constantly keeps them up to speed on the newest and “hottest” designers and products. Nordstrom primarily uses the differentiation strategy in the forms of brand image, quality, and customer service. Nordstrom continuously is creating a company that consumers are steadily coming back to shop time and time again. Nordstrom has built a brand image that has established a loyalty; differentiation provides protection against rivalry since brand loyalty lowers customer sensitivity to price and raises customer-switching costs. Because of the higher entry barriers, Nordstrom has a little more flexibility to provide outstanding customer service to all customers. The common theme to “put yourself in the customers shoes” is exemplified throughout all Nordstrom stores and chains. In addition to Nordstrom’s exemplary customer service, Nordstrom does not fail to bring customers new products to adapt to customer’s desires and outside forces. In the last few years, Nordstrom has partnered with Net-a-Porter, the “world’s first luxury shoppable mobile social network.” This app is moving with technology, as the increase for online shopping has never been in higher demand. This partnership has been a benefit for Nordstrom to gain clients globally, but also entered a new outlet for consumers to buy through. This app has set Nordstrom apart from other retailers and competitors selling similar products. Nordstrom has also not slowed down on the fast-changing world of fashion. Fashion designer, Joseph Alturzarro has exponentially been growing in popularity over the last decade. His brand is featured directly with Nordstrom along with only a few other stores. This elite type of designers keeps Nordstrom ahead of other retailers in the industry. Nordstrom has successful chosen to use the differentiation strategy to gain loyal customers and create a company that is at the top of their class.

Chapter 4: intellectual assets

Nordstrom continues to strive for excellence when it comes to creating a brand that differentiates themselves from the competitors. Through Nordstrom’s intellectual assets, they maximize the best method to create a competitive advantage. One of the biggest ways Nordstrom does this is through the use of technology. Nordstrom constantly evolves with the fast-paced world of changing technology; they successfully adapt to their environment using ways to benefit the stakeholders. Nordstrom offers a credit card that not only encourages customers to shop more at Nordstrom, but also enables an easier way for customers to track purchases while simultaneously creating a stream of rewards. Nordstrom also uses the Personal Book. The Personal Book is Nordstrom’s way to track customers using confidential and voluntary information. The Personal Books helps both Nordstrom and the customer with notification on altercations, orders, repairs and more. Nordstrom’s use of creativity within the personalize system allows a better understanding of customers on an individual basis to assist in knowing what types of product and brands are most popular to maximize a competitive advantage. Nordstrom has created a name brand that portrays class, value, and commitment to providing the best customer service to customers through the use of their intellectual assets.