Gina Varvelli Assignment1 Essay

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Case Study: Nordstrom, Inc.

Gina M. Varvelli
Boston University
02/06/14
MET MG 448
Assignment 1

Abstract

Nordstrom, Inc. Corporate Headquarters is based in Seattle, Washington. It was in 1901 John W.

Nordstrom invested the money he earned during the Alaska gold rush in a small shoe store. He

was devoted to offering his customers the best service, selection, quality and value. His legacy

continues to today. Nordstrom has evolved from a single downtown Seattle shoe store into one

of the nation’s leading fashion specialty retailers. Nordstrom’s goal is to provide outstanding

customer service in every interaction, with the customers, coworkers, and vendors. The

company was founded on this principle and supports their success today and every day. In the

following report, I will examine Nordstrom’s business, its customers, the business model, and

the value of the company. I will analyze the business environment through a SWOT analysis, to

include the company’s strengths, weaknesses, opportunities, and threats. I will then describe the

strategic management factors in implementing the e-commerce business concept.

Table of Contents

Abstract……………………………………………………………………………………..1

Mission Statement…………………………………………………………………………..4

Introduction…………………………………………………………………………………4

Business Description………………………………………………………………………..4

Customer Description……………………………………………………………………….5

SWOT Analysis

Strengths…………………………………………………………………………………….7

Weaknesses………………………………………………………………………………….8

Opportunities………………………………………………………………………………..9

Threats………………………………………………………………………………………10

Strategic Management Factors……………………………………………………………...10

E-Commerce Business Concept…………………………………………………………….12

Financial Health
Market and Competitors…………………………………………………………………….15

Growth……………………………………………………………………………………...15

Conclusion…………………………………………………………………………………..16

References…………………………………………………………………………………..17

Mission Statement

At Nordstrom, our goal is to provide outstanding service every day, one customer at a time.

Introduction

Nordstrom’s corporate culture is about customer service. Nordstrom is one of the largest upscale

and apparel shoe retailers. Nordstrom sells clothing, shoes, and accessories through more than

115 department stores and 110 outlet stores, referred to as Nordstrom Rack. Their presence is in

more than 30 states and online. It also operates a pair of Jeffrey luxury boutiques, a Last

Chance clearance store, and newly-acquired online private site HauteLook... Nordstrom

has an easy return policy, and has earned a reputation for top-notch customer service.

Employees add a special touch by sending thank-you notes to their customers. The Nordstrom

family owns 25% of the company’s stock, while they closely supervise the chain. It was founded

by John W. Nordstrom in 1901 and is headquartered in Seattle, Washington. Nordstrom has 135

trademarks. The most notable trademarks include Nordstrom, Nordstrom Rack, Halogen,

Caslon, Classiques Entier, and John W. Nordstrom. Each of the trademarks is renewable

indefinitely provided that it is still used in commerce at the time of the renewal.

Business Description

Nordstrom, Inc. is a fashion specialty retailer. It operates through two segments, Retail

and Credit. The Retail segment includes Nordstrom full-line stores, off-price Nordstrom

Rack stores, Jeffrey boutique and a clearance store that operates under the name Last Chance.

It also offers brand name and private label merchandise focused on apparel, shoes, cosmetics,

and accessories. The Credit segment includes the company’s wholly owned federal savings bank, Nordstrom fsb, through which it provides a private label credit card, Nordstrom VISA

credit cards and debit card for Nordstrom purchases. The credit and debit cards feature a

shopping-based loyalty program designed to increase customer visits and spending.

The purpose of the…