• Pricing power: Nordstrom has the ability to charge their customers higher prices because they are confident in the qualitative of their products and have been in the market for years.
• Technology: This is an essential component to have for any business because we live in a technology based society. Nordstrom has 6 different apps that can be downloaded for free, for easy access to online shopping and their exclusive catalogs.
• Customer loyalty: Every business must have loyal customers who will choose their products over their competitors every time. Nordstrom has a customer rewards program that offers rewards and benefits each time a customer spends money at their stores.
• Brand name: People like brand named clothing and shoes because this …show more content…
“In 2013, Nordstrom delivered record-breaking total company sales of more than $12 billion, a 30 percent or more increase in e-commerce sales for the third consecutive year and one million new customers acquired via our online business” (Nordstrom Company Review & Annual Report).
• Misleading Target Market: Nordstrom claims to sell high quality, brand named items at discounted prices, but the company seems to be advertising false information. Nordstrom’s department stores appeal to strictly high-class and upper middle class women who are fashionable; even their sales racks contain items for more than $700. This may cause them to lose business in the future and customers will begin to seek other retail stores, such as Marshalls, for brand named clothing and reasonable prices.
• Too many sales chain stores: Apart from their full-line stores, Nordstrom has a sales chain store with 110 locations in the US, known as Nordstrom Rack, which contains the same brand names as the full-line stores at cheaper prices, which can weaken their profits overtime.