Retailer Nordstrom\'s Classified . Describe Characteristics Shares

¶ … retailer Nordstrom's classified . Describe characteristics shares retailers type. 2. Describe Nordstrom's level service continuum full service -service.

Nordstrom Analysis

Nordstrom is in the retailer category. The store commercializes clothing items and accessories. The targeted audience is represented by individuals of all age groups and characteristics. Same as in the case of other retailers that sell clothes, Nordstrom has also expanded its range of products to include jewelry, cosmetics, and certain services.

Retailers in this market sector present a series of similar characteristics that help them maintain their position in relationship with competitors. Such department stores rely on providing a wide range of products, and they focus on consumer goods and on products with high demand. This refers to apparel, electronics, houseware, cosmetics, and furniture. The differentiation between this type of department store and others is represented by the fact that the purchase is made within each department, in comparison with a central area that is organized in other stores.

In other words, this type of retailer is organized in the form of several individual buying centers. The reason behind this type of organization relies on the fact that it allows the store to make economies of scale, and to improve customer service and control. But the strategy of the entire store and the decision making process are centralized. This means that the store's managers focus on establishing the objectives, the sales level, and the marketing strategy that the store must develop and implement.

2. Nordstrom has become an etalon in high quality customer service. The store is famous for not compromising the quality of its service in order to reduce costs. The objective of providing high quality service is revealed in the strategy of the store, but also in the behavior of employees. The case study reveals several stories about customers impressed by the outstanding behavior of Nordstrom's employees that exceeded their job description in serving and helping customers. This strategy proved to be successful, because customers are impressed with such behavior, which leads to increased customer loyalty (Nordstrom, 2011).

However, this is not a characteristic that can be observed at other similar stores. Some of Nordstrom's competitors are not that interested in providing high quality services, but in providing lower prices, which usually leads to lower quality. For example, the customer service at Sears stores seem to be oriented towards quantity, rather than quality. Several customers have complained about the modifications the stores made because of the merger with Kmart.

3. The retailing mix developed by Nordstrom is based on the following components: product, place, promotion, price, presentation, and personnel. The company understands that it is better to focus on some of these components than on all of them at the same time, because it is more cost effective. Therefore, Nordstrom prefers to focus on personnel aspects in order to improve the quality of its services.

Although its competitors provide basically the same brands and categories of products, Nordstrom is differentiated by the behavior of its employees. Instead of focusing on sophisticated technological developments that other stores use in customer service, Nordstrom considers that the attitude of personnel can be used in creating competitive advantage. The company is also interested in other retailing mix components (Samli, 1998). In the attempt to increase its market share, Nordstrom also develops successful strategies regarding its products. The company's customer analyses have revealed the fact that customers are interested in diversified range of products, but also in their quality. The company is determined to not reduce the prices of its products and services because this would be considered a reduction of quality and would not be in accordance with the company's image on the market.

4. There are several challenges that Nordstrom should focus on. The strategy developed by its competitors represents the biggest challenge that the company's managers should take into consideration. This is because their strategy is based on providing low prices to products with high demand. The economic crisis has significantly affected the incomes of most customers, determining them to orient towards cheaper products. Therefore, it is difficult for Nordstrom to maintain its position on the market, while not reducing its prices.

In addition to this, the company must also deal with the challenge of product quality. Numerous customers cannot afford high quality prices, which leads to a reduced customer base in the case of Nordstrom. Therefore, it is important the Nordstrom adapts its strategy to the requirements of the business environment.