Nordstrom Swot

One of those weaknesses being the high concentration in the state of California. Looking at the coverage of the Full-line and Rack Nordstrom stores, there is heavy presence in the east and west coasts. When comparing Nordstrom to its competitors, Nordstrom has little to no presence in the Mid-West. With such a heavy concentration on a geographic location like California, the economic condition of the location risks a high influence on the company's sales.  Unlike Macy’s, who has just announced the closure of one-hundred stores nationwide, Nordstrom is continuing to increase their store counts, with 20 stores opening in 2017 (five in California).  To grow out of this weakness and not have to produce closures in stores like Macy’s, further concentration in other geographic markets would reduce the economic risk of focusing on California

Nordstrom is an ideal store based in US equipped with fashionable items that can be bought through coupons availed through Nordstrom coupons. The Nordstrom coupon codes are another way to make discounted deals you can search for on the online web. Women make their important buys of fashionable items which is sold with use of Nordstrom coupon.

Nordstrom has done a lot to their technology department since 2009 to compete with competitors in the online market. If there were ideas that I could suggest for them, I would say that in their search area on the sites, they can still add more functions, such as a rating system where customers can rank the product on how good it is. Companies such as Macy’s and Nike have a customer rating system for clothing, so buyers know which products are being liked and which ones aren’t. Also, in the online inventory, Nordstrom needs to include which products are new, and which ones are old because it is not listed on their site. Companies such as Nike, Banana Republic and Macy’s all have a “new arrival” tab on their website while Nordstrom does not. Those would be the only inventory management overhaul ideas I would recommend to them. As far as stretch goals are concerned, I

1. Identify the type of retailer that Nordstrom 's is classified as. Describe the characteristics it shares with other retailers of this type.

Threat: Forces shaping the Nordstrom’s strategy is that it is operating in highly competitive environment, where apparel sold by it is not only competing with large organized departmental chains but, also from small independent boutiques in the U.S. As a result competition has become very stiff in retail

The primary challenge Nordstrom faces in the current retail climate would have to be the ability to keep a high level of quality service and products. They also must be able to change with the times keeping their merchandise current. The way that other big name retailers of their type such as Macy’s advertise can also be a challenge too.

Through the 70’s the company continued to grow. In 1974 annual sales hit $130 million. By 1980 Nordstrom was the third largest specialty retailer in the country. Sales hit $407 million and in the next few years, sales continued to rise. Nordstrom’s success was due to many factors. Shoes accounted for about 18 percent of total sales. In addition Nordstrom consistently maintained huge inventories and selection, which were usually twice the size of other department stores. Anchor malls seek the company, as a cornerstone of downtown renovation projects or as an added jewel for high end shopping customers. By being able to expand not only by adding locations, but also by expanding merchandise sold, Nordstrom became a dominant force in the industry and strengthened their market share position.

Weaknesses - Although Nordstrom has substantial strength, the organization is not without weaknesses. First, although Nordstrom’s has a superior selection in comparison to the majority of other retail clothing companies, their quality also comes at a cost that many consumers are not willing to pay. In a period of economic instability and uncertainty, consumers are turning to online retailers such as Amazon in order to fulfill their clothing needs. Moreover, consumers are looking for more convenient ways of purchasing products and clothing is typically something where overnight shipping is acceptable versus an immediate need. Additionally, another weakness of Nordstrom is the geographic dispersion of their retail locations which are most commonly associated with shopping malls. Coincidentally, shopping malls are also struggling to compete with online retailers, thus Nordstrom experiences less opportunistic walk-in customers. On the same token, the opportunity costs for underserved

Macy's is one of the premier retailer franchises within the United States. To begin, Macy's Inc. is one of the nation's largest and well known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date. In 2012 same store sales increased 4.6% in the month of February alone (Macy's Inc., 2012). In fact, throughout the duration of 2012, Macy's is projecting even larger profits for its underlying business operations. Even though Macy's has experienced success with both its assortments and brand, its competitors haven't faired so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isadora, 2011).Other competitors who cater specifically to the middle class consumer have also lost significant amounts of market share as consumers trade down due to the economy. Macy's, with its ride array of assortments and products continues to grow as it attempts to capture market share from failing competitors. Macy's is also unique as it operates in a unique market demographic. It is upscale, but not to the extent of Saks Fifth Avenue or a Nordstrom. It is also not as low scale as a JC Penny

The most important component of Nordstrom's retail mix is its customer service. The retail environment is completely customer driven and giving the customer satisfaction in every possible manner is very important. The point of view that ‘Service Pays’ is accepted by the retailer today

The competitive advantage of Nordstrom is that they have extraordinary services, high wages, promotion possibilities, product availability, their image, customer loyalty, and patronizing sales in which source is superior customer service. Their current competitive strategy is broad differentiation strategy where Nordstrom seeks to differentiate their product or offering from competitor in ways that will appeal to a broad range of

What types of decisions did the owners have to make? Why you think they had to make those decisions?

Macy’s has always found creative ways to attract consumers in the past such as the botanical garden. They should consider hosting more events to build up their brand and draw more positive attention to themselves. I thought it was a great idea for Macy’s to partner up with other retail companies to expand their inventory. Instead of take the initiative to horizontally integrate, they have decided to allow other retailers to setup in their department stores. This would bring in customers that are in a rush to pick up multiple things for holiday shopping to go to Macy’s as it would be a one stop shop. Best Buy is a good example of one of the many partnerships. They already have a fan based and loyal customers, so it would not make senses if they decided to start an electronic department to compete with the current market. It would also resolve the issue of low traffic in Macy’s as it would attract more shoppers to go to Macy’s to visit the section of different

Furthermore, they offer to the customer the experience to buy in a physical store, compared with Amazon that is one of the strongest competitor, there’s no doubt that the internet, and the mobile web in particular, have changed the way people shop, but there is strong evidence that consumers continue to value the experience of

Retailers have adapted to the online marketplace out of necessity and opportunity. The great recession placed many retail companies in financial hardship and while some failed, others innovated and became some of the largest companies in America such as Amazon. A recent trend is consumers are buying more products online than ever before. As a consumer, I enjoy shopping in the convenience of my home and having the items delivered to my doorstep in 48 hours or less. Global internet access continues to increase, with mobile devices and affordable internet for the home, consumers will continue to shift and buy products online rather than in retail brick and mortar locations. Online sales in the United States have increased over 250% in the last ten years, accomplishing $250.0 billion in 2012 (Tehrani, 2014). Therefore, Amazon is in a solid market position to capitalize on the future trends and booming ecommerce