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Competitive advantage and competitive strategy
What is competitive advantage,why has it emerged as a factor
Competitive advantage and competitive strategy
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Nordstrom’s retail positioning strategy provides it with the competitive edge it needs to differentiate it from competitors who also serve similar markets.
First, Nordstrom is unique through its excelling customer service. As a full-service retailer, Nordstrom assists customers in every phase of the shopping process. Because they carry more specialty goods, customers will need and want more assistance leading to increased value of customer service. One of their policies is that they will accept any merchandise that people bring back without asking any questions. As a result, people feel more confident about purchasing products from there, since they can buy something with the comfort and knowledge that Nordstrom has an excellent return
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Nordstrom retail stores have large hallways, and everything is presented in a very classy manner. The color scheme includes pale yellows, whites, and gold, to provide a more elegant appearance in the store in order to make the shopped feel special. The design is also seen through product organization. Compared to stores like Macy’s, which organize their products based on brand, Nordstrom organizes their products based on lifestyle. Because of this, it is easier for shoppers to find clothes similar to their style as opposed to by brand. In effect, shoppers will purchase more products. This also is a type of experiential retailing, where Nordstrom customers are able to experience the elements of their lifestyle within one section. More so, the product presentation will draw people’s eyes to products, even if they are not looking for it. This gives Nordstrom a competitive advantage in relation to other similar retail stores because it makes their store look more glamorous and high-end. While other stores may focus on value, Nordstrom utilizes the retail positioning strategy to make a customer feel more high-end and …show more content…
As a result, they are able to cater to and target a larger demographic market. While their standard Nordstrom products provide a higher-end quality, focusing on upscale shoppers who are high class, Nordstrom Rack targets the middle-class, mid-scale shoppers who may not be able to afford Nordstrom products on a regular day. This price decision allows them to target a completely different market segment of customers who are typically younger and focus on value. Much of their target market is also the young millennial generation. Many other similar retail stores, like Macy’s or Sears, have difficulty attracting this market. Because millenials are younger, Nordstrom aims to build strong relationships with these individuals, as then they will continue shopping at Nordstrom as they get older, increasing the customer lifetime value. Through being able to target two major market segments, Nordstrom holds a competitive advantage over store like Target, who target one market of middle-class
Nordstrom and Nordstrom Rack are different retail operations in terms of their choice, pricing, store service, and store atmosphere customer intimate firms, which excel in serving the specific needs of the individual customer well. There is less emphasis on efficiency, which is sacrificed for giving more precisely what is wanted by the customer. Reliability is also stressed. Nordstrom is an example of this discipline. Nordstrom must meet some standards of cost-effectiveness. When customers evaluate the quality of a product, they commonly measure it against two kinds of attributes: those related to quality as excellence and those related to the quality of reliability. From a quality as excellence perspective, the important qualities are things such as a product’s design and styling, its aesthetic appeal, its features and functions, the level of service associated with the delivery of the product,
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
Retailers rely on product positioning to bolster the value of their products. Determining product positioning requires the analysis of target customers, the market competition, the definition of competitive advantages, and the communications needed to deliver the chosen position to the consumer. Kohl’s is an example of a department store that has successfully deployed a pricing a retail strategy, which evaluates and incorporates price, place, product, and promotion.
Provides a unique atmosphere - Their large open stores, packed with designer brands, gives an elegant feeling, with light colored walls that can’t be found at your local drug store. Also, with a low-pressure sales strategy they provide a very relaxed shopping experience.
When a person is shopping they typically are drawn to something eye catching that is either in or on the storefront. Some storefronts appeal to a very specific customer group whereas others are very general. One storefront that does a good job of pulling the attention of a fairly specific customer group is H&M. The front of this store is very modern, with clean lines that make it appear very sleek and elegant. Something else that this store does that helps them is that almost the entire storefront is made of huge floor to ceiling windows which not only go along to the sleek, modern design but it also allows the customers to see completely into the store. The front of this store helps them to attract the customer group that they are targeting because it gives off a very professional and sophisticated vibe that goes with the type of people that shop there. The floor to ceiling glass windows also help the store attract customers because it
Nordstrom can continue providing their exceptional online experience and client focused approach using their online system by offering an unmatched online experience that copies their in-store customer service. This would allow Nordstrom to raise its revenue considerably as well as further improving their brand image. I will also discuss specific ways of successful execution, and the steps required to provide Nordstrom a stunning picture of how to execute strategy.
Over the years, the American department store has developed and evolved as not only a commercial business but also a cultural institution. While it has weathered many storms and changes since its inception and throughout history, its most predominant enemy has been a change in the lifestyle of the American people (Whitaker, 2013). As the customer’s needs and wants have shifted, department stores have struggled to keep up with demands. It has been argued that the decline of the department store has been ongoing for the last 50 years (Whitaker, 2013). This dissertation aims to understand how the department store has historically played a role in consumer culture and spending, and additionally, how this has evolved and changed in today’s retail market. Although department stores may not be able to take all the credit for inventing modern shopping, they certainly made its conventions and conveniences commonplace. They set a new standard for the way the consumer should expect to be treated, the type of services that should be provided, and the convenience that should attend the process of acquiring the necessities and niceties of life all in one place. They made shopping into a leisure pastime. This environment meant shopping was a means of freedom to look around, pick up objects with no obligations to buy. As one historian remarked, department stores: “encouraged a perception of the building as a public place, where consumption itself was almost incidental to the delights of a sheltered promenade in a densely crowded, middle-class urban space” (Whitaker, 2006). Although this perception and view of the department store has changed over the years, this paper aims to follow the trail of how and why that happened.
Target is the second leading discount store in the United States, which makes looking at market structure easy to identify. In this case Target would be considered a perfect competition market structure due to several factors. This type of marketing structure also helps to explain the financial performance that Target has and how it is able to maintain its position among the U.S.’s discount stores. By understanding more about market structure, we are able to understand how companies, such as Target, are able to be so successful.
Recommendations to achieve a sustained competitive advantage: Online, mobile, and store purchase will certainly increase customer traffic with the online and store combinations gives Target Corporation with a best possible low-cost price. A best-cost provider strategy allows Target to position itself and compete with low-cost providers such as Walmart. In addition, it employs a competitive strategy with a designer label along with superior supply chain, increased operational capabilities, and skilled employees. . The strategy of sending coupons are huge for a customer, so increase discount based on their purchase history and use the store brand credit card to attract more customers.
In general merchandise retailing, Wal-Mart’s primary competitors are Target and Kmart. Retail superstores such as Circuit City and Bed, Bath, and Beyond, also provide retail competition. A survey found that the majority of respondents favored Wal-Mart over stores like Target and Kmart. Respondents claimed Wal-Mart offered lower prices, better variety and selection, and good quality. The needs of consumers is an important economic feature in all competitive environments. What attributes (price, variety, quality, etc.) prompt buyers to choose one retailer over another is very important in the competitive landscape.
Macy 's strategy is to provide a "localized merchandise offering and shopping experience to targeted consumers" (Macy 's Inc., n.d.). Macy 's generates primary revenue through the sale
In designing the buildings, the storefront is a key focus, with its large public doors, heavy use of glass, display windows, and entrance signage. Much like today, a storefront often serves as its own advertisement to pedestrians or drivers passing by and as such becomes a heavy focus for a store’s design. As in the case of the Kress stores they established their brand in a shiny gold handwritten font over a green back...
Retail stores consider many factors when designing the store to assist with maximizing the experience that the customer will encounter. The average customer has no idea that the store places such amount of thought into the setup and design layout. Everything from the merchandise displays to the locations of certain departments are designed to increase the revenue and success of the store. The target market for the retail store is classified as the type of customer that will contribute to the success and can evolve over time if the store is experiencing difficult times. The ability to be fluid in decision-making is required because change is constant with any customer driven business. The majority of retail customers desire the convenience of knowing that they are getting their money’s
... concept is inadequate. The concept according to majority of retailers is just dressing a window, or just an unnecessary expenditure. The competitors’ today have an astonishing retail design stock and will have to compete purely on master merchandising and the technological edge.
The importance of store layout and store design is presenting most available products to customers, it can also encourage customers and to help themselves, it can increases the sales and ensure that a brand is positioned in a good way and allowing to differentiate the brand from its competitors. An effective design can increase the understanding of a customer and therefore it increases the sales, helps the customers to know more about the product and the brand itself. It has also an influence on the item that was purchased, stored and the money and time that was spent. ( Sherman et al,