Nearly Full-Line stores and Nordstrom Racks 2.
These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research — some of the strengths of Nordstrom are — High level of customer satisfaction — the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers.
Highly skilled workforce through successful training and learning programs. Nordstrom is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.
Strong distribution network — Over the years Nordstrom has built a reliable distribution network that can reach majority of its potential market.
Good Returns on Capital Expenditure — Nordstrom is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams. Strong Free Cash Flow — Nordstrom has strong free cash flows that provide resources in the hand of the company to expand into new projects.
Successful track record of developing new products — product innovation. Superb Performance in New Markets — Nordstrom has built expertise at entering new markets and making success of them.
The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in. Strategy is about making choices and weakness are the areas where a firm can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
Days inventory is high compare to the competitors — making the company raise more capital to invest in the channel. This can impact the long term growth of Nordstrom There are gaps in the product range sold by the company. This lack of choice can give a new competitor a foothold in the market.
Not highly successful at integrating firms with different work culture. As mentioned earlier even though Nordstrom is successful at integrating small companies it has its share of failure to merge firms that have different work culture.
Need more investment in new technologies. Given the scale of expansion and different geographies the company is planning to expand into, Nordstrom needs to put more money in technology to integrate the processes across the board.
Right now the investment in technologies is not at par with the vision of the company. The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories.
Nordstrom has to build internal feedback mechanism directly from sales team on ground to counter these challenges.
The marketing of the products left a lot to be desired. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors.
A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines. Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments.
This should open a window of opportunity for Nordstrom in other product categories. New customers from online channel — Over the past few years the company has invested vast sum of money into the online platform. This investment has opened new sales channel for Nordstrom.
In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics. Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for Nordstrom to capture new customers and increase its market share.
Lower inflation rate — The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Nordstrom. Government green drive also opens an opportunity for procurement of Nordstrom products by the state as well as federal government contractors.
Changing consumer buying behavior from online channel could be a threat to the existing physical infrastructure driven supply chain model. No regular supply of innovative products — Over the years the company has developed numerous products but those are often response to the development by other players.
Secondly the supply of new products is not regular thus leading to high and low swings in the sales number over period of time. The demand of the highly profitable products is seasonal in nature and any unlikely event during the peak season may impact the profitability of the company in short to medium term.
New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future. Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors.
Certain capabilities or factors of an organization can be both a strength and weakness at the same time. This is one of the major limitations of SWOT analysis. For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors.
SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. The matrix is only a starting point for a discussion on how proposed strategies could be implemented.Nordstrom has the opportunity to invest more into their credit business because many of their competitors have more resources in this area giving them an advantage.
Their competition is external but the choice to not invest highly in their credit business is a weakness of Nordstrom. Topic: Nordstrom SWOT. send.
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|Nordstrom, Inc. - Strategy, SWOT and Corporate Finance Report - Ken Research||Canadean strictly follows a standardized research methodology to ensure high levels of data quality and these characteristics guarantee a unique report. Nordstrom is the US based fashion specialty retailer.|
|Weighted SWOT Analysis of Nordstrom||SWOT analysis refers to a useful technique that is used to understand the strengths as well as weaknesses of an organization or a person while identifying the opportunities to explore and threats to face.|
Analysis also covers its tagline/slogan and USP along with its sector. Nordstrom SWOT Analysis. Strengths. Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Nordstrom: 1.
Nearly Full-Line stores and Nordstrom Racks 2. Revenue performance is strong and has a good market reputation among customers. Nordstrom Swot Words | 12 Pages. Shannon Walters Midterm SWOT 10/15/ Strengths: * Representing people with disabilities in their catalogs since , which is rare.
This is a strength because it represents all customers of Nordstrom, not leaving out certain groups because of industry ‘norms’. This speaks volumes to all customers. SWOT Analysis for Nordstrom: Strength: It was rationalized by the promoter that if customers are satisfied by the services and the best service could only be offered by highly motivated employee (sales force), the share holders, promoters are bound to get their share in terms of high profit and revenue.
Nordstrom SWOT Analysis. Strengths • The company provides its customers with all the promising quality, value, services and the selections. • The most significant strength for the company is its norms, standards, values and principles that they are attaining in all possible conditions.