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Advantages Of Nordstrom

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Company & its Strategy: The Company Philosophy to offer the Customer best in service, Selection, quality and value was the competitive advantage of Nordstrom in being no 1 in implementing the High-service strategy as its Key success factor and being the Gold Medalist in National Retail Merchants Association.
To be able to sustain the competitive advantage Nordstrom had an effective sales team comprising of young talents (Heroics) who gave their full time and efforts in maintaining the reputed position of Nordstrom by giving exceptional customer service increasing the brand loyalty amongst customer and sales/square foot.
Decentralized system in the company enabled regional store manager to make their own decisions to enhance customer service …show more content…

The competitive edge of Nordstrom being successful was based on its superior customer service. This service included writing thank you notes to customers or retrieving desired items from other departments and many other exceptional things but the hours spent to maintain this service was not a part of salespeople´s evaluation i.e. SPH.
The SPH ratio discouraged spending time on delivering customer service because every hour spent on that means losing time to achieve sales. For example, a sales clerk who is very concerned with serving customer and thus helps to retain customers will come off badly in term of his SPH ratio compared to a colleague who is only focusing on sales and doing badly on customer service. There are high chances of Customer Dissatisfaction also if the SPH system continues and soon the Competitive advantage of Nordstrom of exceptional customer service can …show more content…

The company faced various union allegations, law suits (from individual shareholders who alleged that they had suffered financial losses) and finally regulatory orders.
Local 1001 estimated that Nordstrom could be liable to pay $30 million to $40 million in back pay claims from its Washington employees alone which was huge stake to Nordstrom´s financial condition and its reputation. All these problems made Nordstrom an unattractive company to work for. These problems are a threat to Nordstrom´s competitive advantage and overall success.

Figure 1 shows that how the misalignment of KSF of internal and external environment can increase these

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