SWOT Analysis of Nordstrom (NYSE: JWN)

adam August 24, 2012 Retailing No Comments

In 1905, the retail industry was founded which is known as Nordstrom and is founded by John W. Nordstrom. The company is headquartered in Seattle, Washington, U.S. the companies is running its 225 stores and are operating in 29 states all over the world. The company is engaged in the production of footwear, house ware, clothing, bedding, furniture, cafe, and jewelry and beauty products. The strongest current competitors of the company in the market are Lord and Taylor, Saks Fifth Avenue, Vein Muar and Neiman Marcus. The facility of free shipment is also offered by the company.

Nordstrom SWOT Analysis

Strengths

• The company provides its customers with all the promising quality, value, services and the selections.

• The most significant strength for the company is its norms, standards, values and principles that they are attaining in all possible conditions.

• The company strongly believes on its employees about their loyalty to work which leads the company to prosperity and success and the company respect its employees in any of their contribution.

• The company is diversifying its type of business as because the customers find it interesting and up to date.

• The strength for the company is their planning as towards their expected goals and achievements and achieving them with great social responsibilities.

• The more focus of the company about the environment that encourages the sales and their aim to work in the areas of recycling, deforestation, chemicals, water and transportation.

Weaknesses

• The achievement in the current situation in case of forecasting and advancement in the upcoming trends is difficult for the company.

• Sudden expansions and renovations in the outlet stores is weakness for the company in decreasing its growth and reduction in the customer services.

• Sudden and rapid expansions also decreases the work efficiency of the employees and quite difficult for the management team to handle the fluctuating situations.

• The reputation of the Nordstrom Corporation can be enhanced through the high social class but it becomes very costly for the company.

Opportunities

• The company should try to resist the customers with them by providing them as according to their requirements as they need the luxurious items but the reasonable prices.

• For the middle and average class customers the company should try to expand and merge more markets with the needs of such people.

• As the focus of the fresh customers is the products with the green and organic material so the company should try to produce innovative material in that category.

• The establishment focused by the company in order to have the changing behavior and lifestyle of the society and people.

Threats

• The wide range of the products and the segments produced by the company is difficult to be managed by the employees.

• The upcoming competitors for the company get the opportunity from the extended segments stated by the company by doing specialization.

• The company is more depending upon the working of the suppliers which is the main threat for the company.

References

• www.nordstorm.com, Accessed on May 24, 2012.

• Nordstrom, Inc.: SWOT Analysis and company profile (2011).

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