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Nordstrom Essay

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HREAT OF NEW ENTRANTS There is a Medium level of threat of new entrants into the Canadian retail industry for the following reasons: • Medium Barriers to Entry. While the Canadian retail industry did not live up to expectations the last few years, it has not stopped new and foreign retailers from entering in to this industry. Last year alone there were more than 50 international brands that entered Canada, which is quite high seeing as over the last several years only about 20 new retailers were entering Canada per year.15 These new retailers will also be looking to expand by opening more locations in various markets in the coming year.16 While there has been a spike in new entrants in the Canadian retail industry, it should be noted that it …show more content…

For new entrants into the Canadian retail industry, it could prove to be difficult as retailers currently operating in this industry are likely to have strong relationships with suppliers. Nordstrom already has strong relationships with Perry Ellis International, Vera Bradley Inc., and Oxford Industries Inc.17 POWER OF SUPPLIERS Suppliers of Nordstrom have a Medium amount of power for the following reasons: • Brand and Supplier Variety. There are far too many brands that are suppliers for Nordstrom and other major retailers such as HBC, Holt Renfrew, and Saks, for one to drastically effect the overall bottom-lines of these organizations. Nordstrom relies on hundreds of different brands, not just one. There are also a multitude of supplier substitutes in the retail industry, which allows Nordstrom to not be so reliant on one specific supplier. • Supplier Relationship. Nordstrom is known to have a strong relationship with most of its suppliers, as they’ve been carrying the same products for years …show more content…

Consumers of the retail industry are always looking for what’s “in” at the moment, and that could affect Nordstrom in a negative way. Nordstrom only offers high end luxury clothing items and if that’s not the trend at the moment, then consumers will go to other retailers who are supplying what the current trend is. COMPETITVE RIVALRY There is a High level of competitive rivalry for the following reasons: • Main Competitors. The main competitors Nordstrom faces in the Canadian retail industry are comprised of the following large-scale retail stores: Holt Renfrew, Hudson’s Bay Company (HBC), Saks, and Amazon. The Canadian retail industry has seen a growth in the luxury sector and discounted brand name sector, which has created even stiffer competition for the retailers listed above.19 • Competitor Technology. Amazon has been always one step of their fellow retail competitors. Amazon has always thought outside the box, they don’t think like a retailer, they think like a technology innovator or data company, which just happens to be part of the retail

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