Nordstrom was founded in 1901 and started out originally as a shoe store and grew exponentially into the highest rated department store in America known for its excellent customer services. Since the beginning there was a huge emphasis on delivering the best service and quality of products. This was further entrenched by the companies’ culture of employee empowerment. Each employee is encouraged to use their best judgement when dealing with customers. They also promote call backs and engage their customers on a different level than most department stores. More recently they have grown into the digital era with their subscription service called trunk club. This allows them to reach a far greater market and they offer personal stylist to pick
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Everything is high quality and only the latest and most staple items are held. As discussed early there is such a great emphasis on customer care that it puts them well above their competition. Another strength is their focus on different channels of distribution including their subscription services to reach a broader audience.
Weaknesses include having a high volume of inventory at all times. This is due to seasonal changes and fashion trends which can become a problem. Another weakness is that most of the clothing is high-end and generally very expensive to the average consumer.
As for opportunities it is obvious they are leaving out a huge market by targeting a wealthier customer base. If they were to expand into the middle class more it would boost their reputation and sales. Although they are making strides towards that direction they are still known for being higher end and need to more aggressively market their affordable options. Nordstrom can also invest more time than they already are into their online sales and specifically their subscription …show more content…
Each one is trained and has a deep understanding of what the customer interaction. The real competitive advantage this gives them compared to other department stores is how empowered their employees are. Employees are encouraged to sell things from any department in the store and not be restricted to one area. Another strategy they are implementing is targeting the younger audience by adding a purchase button directly from their Instagram and other social media. While clunky the system works as intended and puts them very far ahead in the competitive space and markets their brand towards the younger audience which they hope will eventually become customers at their retail locations. While trying to draw in the younger scene they also focus heavily on their existing users by having their ‘preferred’ customer’s pre order items before sales allowing them to pre purchase items for the discounted price. This ensures customer retention and satisfaction over
Everything is high quality and only the latest and most staple items are held. As discussed early there is such a great emphasis on customer care that it puts them well above their competition. Another strength is their focus on different channels of distribution including their subscription services to reach a broader audience.
Weaknesses include having a high volume of inventory at all times. This is due to seasonal changes and fashion trends which can become a problem. Another weakness is that most of the clothing is high-end and generally very expensive to the average consumer.
As for opportunities it is obvious they are leaving out a huge market by targeting a wealthier customer base. If they were to expand into the middle class more it would boost their reputation and sales. Although they are making strides towards that direction they are still known for being higher end and need to more aggressively market their affordable options. Nordstrom can also invest more time than they already are into their online sales and specifically their subscription …show more content…
Each one is trained and has a deep understanding of what the customer interaction. The real competitive advantage this gives them compared to other department stores is how empowered their employees are. Employees are encouraged to sell things from any department in the store and not be restricted to one area. Another strategy they are implementing is targeting the younger audience by adding a purchase button directly from their Instagram and other social media. While clunky the system works as intended and puts them very far ahead in the competitive space and markets their brand towards the younger audience which they hope will eventually become customers at their retail locations. While trying to draw in the younger scene they also focus heavily on their existing users by having their ‘preferred’ customer’s pre order items before sales allowing them to pre purchase items for the discounted price. This ensures customer retention and satisfaction over