Question

What are Nordstrom’s greatest risks, and who are its biggest competitors?

Answer 1

Nordstrom is an high end departmental store specializing in great brand of Shoes though in some locations they do sell clothing, accessories, handbags and other apparel accessories like cosmetics and in some stores they offer home furnishings too. The greatest risk to Nordstrom is though very great competition from massive retailers who have sprung up in recent times. The competition and prices are the greatest risk. Brand loyalty has now given way to dynamic shift in tastes and demand patterns. Hence Nordstrom’s risk of accumulating the brand and inventory may result in losses. Norton operating style with less flexibility on product diversification could be another source of great risk . The inability to accept new styles and face it off smartly is another potential risk element which has to mitigated through policy shifts and marketing techniques aimed at the ever green customer instead of loyal customers. The risk of traditional methods of selling needs to give way to dynamic methods of selling. The competition that the firm faces is from the new generation stores which not only project themselves as an all customer store but also portray their selling efficiencies as well. Nordstrom's biggest competitors are Bloomingdales, Lord & Taylor, Von Maur, Neiman Marcus, and Saks Fifth Avenue.