Nordstrom essay

Nordstrom is one of the most successful retailers that operates in the US and holds a strong position in the retail market. Initially, the company was founded as shoe retailer, but today the company sells shoes, clothes, accessories and other products. Nordstrom aims at taking the leading position in the US market. To reach this goal, the company focuses on the customer satisfaction and meeting customer needs. The company has managed to reach a tremendous success due to its effective customer relations management and successful marketing strategy which put the company into an advantageous position compared to its rivals.

NORDSTROM’S TYPE OF RETAILER AND SIMILARITIES OF NODSTROM TO OTHER RETAILERS

Nordstrom is an upscale retailer operating nationwide. The company offers customers diverse products of the high quality and, more important, the company uses the customer-centered approach to meet needs and wants of customers. Nordstrom attempts to find an individual approach to each customer. In fact, Nordstrom is similar to other retailers in its efforts to gain the customer attention and to attract customers to its products. At the same time, the company uses the unique approach to customer creating specific atmosphere that customers cannot find anywhere else but in Nordstrom stores. The company was traditionally oriented on offering customers products that they needed. At first glance, other companies do the same but the way Nordstrom does it, no other rival of the company can do. What is meant here is the fact that the company focuses on each individual customer and the company attempts to maximize the customer satisfaction offering diverse products and services exclusively to each customer. In such a way, customers come to Nordstrom stores expecting to find what they like and to receive what they want. Such orientation of the company on the customer satisfaction distinguishes Nordstrom from its rivals but the company’s customer-centered approach is similar to that of its rivals. In addition, the company has retail stores nationwide similarly to its major rivals and the company attempts to expand its market share to take an advantageous position in the market and to attract more customers that is actually the ultimate goal of any company operating in the retail market.

NORDSTROM’S LEVEL OF SERVICE ON THE CONTINUUM FROM FULL SERVICE TO SELF-SERVICE

The Nordstrom’s level of service on the continuum from full service to self-service changes in the course of time but it was always oriented on the customer satisfaction and on individual approach to each customer. Such customer-centered approach was a traditional characteristic of Nordstrom retail stores. At the same time, the company’s level of service evolved in the course of time as the company offered different products and steadily expanded its product line and services. In fact, the company offered shoes at the beginning of its operations in the market. Steadily the company expanded its product line, which now includes not only shoes but also clothes, accessories and other products. Similarly, the company expanded its services offered to customers. At the beginning Nordstrom was just a retail store selling shoes but steadily the company introduced delivery service to supply products to customers, while today the company develops e-business and attempts to reach the target customer group online offering its products online and shipping them to customers in possibly shorter time.

In this regard, it is possible to trace the change from full service, when customers came to a store and salesperson and other staff provided them with full services to meet their needs and to offer the product they needed, to self-service, when customers now can choose any product they like or make an order and the company delivers the product to customers as soon as possible. In such a way, the company carries on the strategy of meeting customers’ needs and increasing the customer satisfaction.

THE SIX COMPONENTS OF NORDSTROM RETAILING MIX

The six components of Nordstrom’s retailing mix focus on the high quality and customer satisfaction, which allow the company to outpace its major rivals. Products of the company are diverse and the company pays a lot of attention to the quality of its products. Nordstrom focuses on the diversity of products as an essential condition to meet all needs of customers and to provide products they want to purchase, while the high quality of products increases the customer satisfaction.

The price of products Nordstrom sells is competitive and customer can enjoy the high quality of services and products, while they pay the price which is similar to that of the major rivals of Nordstrom. This is why the price is attractive to customers.

As for the place component, the company operations in the US nationwide and it plans to expand its business internationally that is an essential step in the contemporary business environment. The company focuses on the domestic market and now the company attempts to expand its market through developing its e-business which helps the company to reach a broader customer group and deliver products to customers, regardless of the location of customers and Nordstrom’s stores.

The promotion strategy of Nordstrom was low-cost but efficient because the company focused on origin, exclusive promotional campaigns that caught the customer attention and increased their satisfaction. In fact, the company’s best promotion was and still is the high quality of services and the customer-centered approach the company uses to each individual customer.

In this regard, people working in the company are very important because they are well-qualified professionals delivering services of the high quality and meeting the company’s strategic goals.

Today, the company tends to automation of all processes. For instance, today, customers can make an order online and receive the product in a matter of hours and days depending on the location of the customer.

THE PRIMARY CHALLENGES NORDSTROM FACES IN THE CURRENT RETAIL CLIMATE

The major challenge is the deterioration of the economic situation because the customer buying power has dropped and the company faces difficulties to regain its customers. Nevertheless, the company can improve its performance due to the customer loyalty. At any rate, at the moment, the company maintains its competitive position and stable sale rates.

RECENT CHANGES IN THE COMPETITION AND CUSTOMER EXPECTATIONS

One of the recent trends is the development of e-business because companies and customers move online, where they make purchases and transactions. In fact, the development of e-business changes conventional way retailers like Nordstrom used to sell their products. At the same time, e-business expands services the company can offer to its customers and meets the strategy Nordstrom always used to reach its target customers and to offer unique, individual services to each customer.

CONCLUSION

Norstrom attempts to create positive interpersonal company-customer relationship, which help the company to attract customers and to gain a positive attitude of customers to the company. In such a way, the company attempts to shape a positive brand image and to develop customer loyalty. In actuality, the company is quite successful in its business development as Nordstrom has its stores nationwide.