Owing to the trending market and the increased commercial market on the global level, there is a subsequent rise in many of the retail markets, luxury brands, and fashion establishments that try to bring the customers a step closer on a global level. Among the many retail outlets that have been put up on a huge commercial success, Nordstrom is one among them. Let’s know about Nordstrom Competitive Advantages.
A high-end retail sales department store that offers multi-range commercialization of fashion, luxury, and accessories is what Nordstrom specializes in. Having headquartered in Seattle, Washington, and initialized as a shoe store, Nordstrom eventually took over the market and is now one of the top high-end retailers in the luxury and fashion industry.
To have a clear understanding of the working of Nordstrom and its competitive advantage, it is important to consider the options that it places on cards. On one end, Nordstrom is labeled as a high-end retail store that offers shoes, clothes, and accessories for men and women. But, on the other end, it is also branded as Nordstrom-based Visa credit cards that enable the customers to make a smooth credit buying, combined with these two options is where the revenue is marketed at.
The competitive advantages of Nordstrom
Any competitive advantage for a firm is related to the technicality it implements in bringing a high customer value and eventually building a commercial market. It can take place by lowering the prices or by providing additional advantages beyond the traditional marketing level. The two main approaches or secrets that Nordstrom relies on to increase its competitive advantage are cost leadership and building an effective differentiation from the other competitors. The differentiation is considered an important aspect because of the death of traditional brick-and-mortar sales strategy and also because of the birth of many contemporary retail markets that have dominated the global market.
What is the one thing that differentiates Nordstrom from the other retail markets?
Though there is a constant evolution required in the retail market just for survival, Nordstrom is one such market that has paved its way into the future. It not only appears to be years ahead of its peers in terms of building a digital initiative and implementing an off-price concept but is also considered to be one among the handful of retail markets having a clear plan in showing the results and recognizing the unprecedented changes sweeping through the industry.
Here are the key takeaways of the competitive advantage it offers.
The first concern towards achieving a competitive advantage is to increase commercial value. Nordstrom by far has taken this approach to another level.
- Offering quality customer service, enabling premium and high-quality selection of brands, and pitching with some huge names in the industry, has gone a long way in being hailed as one of the top fashion retailers worldwide.
- Nordstrom also has made a commendable name when speaking about inventory policies and strategy management. It offers skillful pricing of the inventory that not only gives a cutting-edge inventory advantage but also has enabled a step closer to being regarded as the top retail market.
- Another important aspect in this light is the unique segmentation strategy that it has implemented.
Nordstrom, unlike the other contemporary retail markets, minimizes the audience that has been deriving from it and focuses on the most affluent type of customers whose main ideal is for selection of high-quality branding and who desire fashionable high-quality merchandise.
Nordstrom takes by storm one of the most methodological approaches in selling and that is by providing exceptional customer service in terms of selection, quality, and value of the products The main policy behind successful implementation of quality customer service is to imbibe the saying customer is always right.
And because of the niche specificity that it inculcates, Nordstrom primarily focuses on customers that are more affluent and specific rather than a generic model of customers. Nordstrom also has enabled the online shift of shopping, owing to the pandemic that has not only increased the sale segments but also given some better off time for the company to come up with a clear picture of what to provide and how to implement a successful competitive advantage.
Conclusion
As a result, Nordstrom has had a smooth patch in terms of getting customer reviews since 1995 and also thrives to improvise for the better. Nordstrom is known for its credible selection of huge brand names that are placed in its bag. Having known for building a unique approach to staying relevant and up to the global market, Nordstrom can be undoubtedly considered a retail stalwart and thrives to hold that name.
FAQs
1) What is the main source of a successful and sustainable competitive advantage for Nordstrom?
Undoubtedly, the main motive behind the successful competitive advantage of Nordstrom is the high-quality customer service that differentiates it from other retail markets.
2) How does Nordstrom manage high-end brands and maintain sustainable partnerships?
Nordstrom achieves a high-end branding partnership because of the perfect balance it has found between quality control and enhanced inventory capacity over the high-end competitors.
