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.