Nordstrom (JWN) is a chain of 290 stores in 38 states in
United States as of fiscal 2014. The company operates as a leading retailer in
apparel and accessories. There are mainly two reportable segments of the
company which are retail and credit.
segment is the main segment of the company, whereas credit segment is more of a
support segment that provides payment products and services. (Market Realist , 2015)
Nordstrom truly sets itself apart from with its
exceptional customer service, and its top quality salesperson. The service
Nordstrom offers is what sets the company apart from many competitor. Nordstrom
has notable competitors in the retail industry that offers high fashion in a
similar department store format. Other retailers that specializes in high-end
fashion include Macy’s, Dillard’s, Neiman Marcus and Saks.
Auckland is the New Zealand’s most populous city. Auckland
is shelter to over half of New Zealand’s overseas born population and its
ethnic diversity reflective of global city.
According to the Demographic report card, Auckland
area 2016 it shows that about 68% of the population in Auckland is in the age
group 15 to 64 years. Between the 2006 and 2013 census, the Auckland population
increased by 8%, compared with the population growth of 5% in New Zealand over
time. Where 39% of the population are born overseas. Auckland’s population is
considered as working age population. (Auckland Council , 2017)
v Social and
The way of life
and society in New Zealand is affected by numerous things including the Maori
individuals and the varying European heritage of the other inhabitants. New
Zealand has multicultural society and people are welcomed all over the world. The
culture is one of self-reliance, which has become out of hundreds of years of
fighting for themselves because of their remote area. New Zealand’s is often
considered to be classless society.
and legal environment
New Zealand’s political and economic stability
provides a safe environment for investors and businesses. It is highly
internationally ranked for its government transparency, democratic institution
and low level of corruption.
It’s a good option to invest, New Zealand as it has a
stable and globally competitive economy. They have positive economic growth for
33 of the last 35 years. Exports of goods and services makes about 30%v of GDP.
A wide range of free trade agreements, pro-competitive regulations, an
efficient tax regime, an open political system and investment in innovation
have all given rise to an efficient and competitive economy. (New
Zealand Trade & Enterprise , n.d.)
New Zealand has the fastest growing technology sector.
Technology is transforming vast number of New Zealand jobs. Many existing job
will be replaced by computers and automation.
Besides the fact that New Zealand has fastest growing
technology but it lacks a vision for how to deal with technology. New Zealand
is not properly managing the opportunities and issues around the reduction in
the tyranny of distance, international labour market, capital cost, delays in development,
and the policies to support new forms of working. (The future
of work, n.d.)
7) Internal Environment
Nordstrom is an
American chain of luxury department stores headquarters in Seattle, Washington.
It was founded in 1901 by John W. Nordstrom and Carl F. Wallin, the company
began as a shoe retailer and expanded its business to clothing, accessories,
handbags, jewellery, cosmetics, and fragrances. There are some store that also
carry wedding and home furnishing department.
The company has
349 stores operating in 40 states. Today Nordstrom is one of the nation’s
leading fashion retailers, offering a wide variety of fine quality of apparel,
shoes and accessories for men, women and children at stores across the country.
(Nordstom Inc, 2017)
Nordstrom deals in all kind of designer
collection, shoes, men & women apparel, kids clothing, home decors and
beauty products. Nordstrom has developed
its own niche in retail industry as a mid-tier retailer such as Macy’s Inc. and
high-end, luxury retailers including Saks Fifth Avenue and privately-held
Neiman Marcus. It offers a broad array of 500 brands, targeted towards the
whole family. Nordstrom differentiate itself by offering inclusive selection of
quality merchandise at affordable price.
If the product which is ordered does not deliver within two
weeks of order date, Nordstrom follows the practice to permanently reduce the
price of an item you purchased
They happily adjust the price which is on sale for the
only make one sale adjustment per item.
The item must
be in the same colour and size, and in stock at Nordstrom.
goods originally purchased at a sale price and items included in special Extra
Savings events are excluded from any adjustments.
The company’s success is based on its strategy of
providing superlative customer service.
Associates are encouraged to act as entrepreneurs
and build strong personal customer relationships with customers clients.
The core competencies that set them apart are
their sales employees.
Nordstrom values employees as their most valuable
asset which every company should do.
It belongs to
every type of social media.
its new arrivals on Facebook and twitter. Each of its stores has an Instagram
account where they post different outfit ideas, or new products that have
arrived in store.
always make every effort to let all customers know about what is coming in and
what the current trend is.
with many fashion conscious customers so keeping them in the loop about what is
being sold helps to provide them optimal customer service.
sale emails and phone calls are sent to promote it.
Nordstrom card holders
can easily access to all of their sales and bonus reward opportunities so they
will continue to shop with them.
They make sure
all date and times of the sale are clearly stated.
their sales people to develop new personal relationships every day.
always encourage them to solicit new customers but also maintain relationships
with the current customers as well.
The organizational structure of Nordstrom, will include
Board of Directors as the Decision making Committee, under them there will be
Team of all departments Executives and Store as well as Department Managers.
This all senior members plays a very important role in making company’s growth
and development strategies as well to keep in top brands in the market.
The company consider
all its employees as an asset not as a liability. Human Resource conducts so
many training sessions to develop their employees.
revenue performance is strong and it has good reputation among customers which
increase its chances of success in Auckland. As estimated, about 68% of the
population in Auckland is in the age groups 15 to 64 years who are brand and
fashion-conscious. Nordstrom provides customers with best services and
products. So, well established name of
Nordstrom can imbibe trust within them. Moreover, Nordstrom operates in
clothing, footwear, bedding, jewellery, beauty products, café, furniture,
houseware category which will target wide variety of people of Auckland which
in turn will contribute in its success. Its many years of experience enables it
to make adjustments in sales, inventories etc. as quickly as possible which
will benefit it to do business in Auckland successfully. Other factors of
Auckland like high population, multicultural and self- reliant society,
political and economic stability, technological advancement provides a safe and
convenient environment for business. High number of overseas- born Auckland can
bring new skills, new ideas, a diversity of perspective and experiences which
can make our business more innovative and productive. Auckland port and airport
link to global markets make it easy to import and export our products.
many similar stores can make Nordstrom’s market share in Auckland stagnant.
Also, the prices of products are for high-end users which makes hard for average
and low income Auckland to buy them as they are price sensitive. Except U.S.
and Canada the store locations of Nordstrom is rare in the other parts of the
world which may make it less-known fashion industry.
Nordstrom in Auckland will open the doors for developing new relationships,
market expansion and will be a step ahead to flourish globally. Working with
new and diverse population will bring new ideas which in turn will result in
to buy the products of already existing brands or from the market which belong
to their country. It will take time to win trust. So bringing the new concept
can be risker because of which emotional connection with customers may
decline. Strong competitors like
H&M, Topshop, and Zara etc. are the biggest threats we are having in the
way to success. The difference in the value of currency increases the
possibility of foreign currency exchange risk. Lastly, legal and regularity
factors like unfavourable tax consequences, foreign and local laws can pose the
problems to do business.
set up Nordstrom in Auckland, organization should require to make an expected
arrangement. As a standout amongst the best retail organizations in North
America over the previous decade, Nordstrom has ready to grow a business that
has brought the best items with outstanding administration and the business’
most uncommon Omni-channel stock idea where clients can augment Nordstrom’s
capacity to convey stock to them paying little heed to time or area. Nordstrom
can venture into being a national organization with the effective dispatch of
the Nordstrom Rack off value deals division. Nordstrom has possessed the
capacity to extend its objective clients by giving their clients decisions in
view of cost and also accessibility.
reason for this venture Nordstrom will make is for the extension of our retail
operations outside of North America. As they can effectively develop their
North American business. Presently it’s a great opportunity to get the chances
to extend the brand to nations hoping to have American retailers venture into
their nations, for example, New Zealand.
this point Nordstrom in light of evaluations should have accessible long haul
financing basically with a specific end goal to set up calculated systems. The
likeliest of sources will be the securing of here and now to set up single
store at first.
Equipment and Land
The aggregate cost of the venture might be differ as
per the change in political and lawful condition. The budgetary investigation
finished for this task Nordstrom will require at least 1.5 million square feet
for floor space added to meet long haul objectives set by officials. This is
the motivation behind why development is presently being arranged
Keeping in mind
the end goal to begin these business is by authorizing a nearby retail
gathering to deal with the production of and the resulting support of our
stores under usage of a permitting understanding. Nordstrom will consent to
back not simply block and concrete, but rather make a compelling on the web and
store production network organize that incorporates a more noteworthy
centralization of internet acquiring.
Needs – with a specific end goal to
develop their retail business to new regions Nordstrom should have the capacity
to meet criteria in light of establishment principals set up as Nordstrom has
hoped to develop and extend their business as a major aspect of their general
money related system. Nordstrom should likewise ensure that the any area they
are taking a gander at that from a calculated point of view and a level of
administration outlook that development can live up to Nordstrom’s level of
ESTIMATED REVENUE FOR THE NEXT
Nordstrom will probably give these
clients another experience where they can show signs of improvement esteem for
their cash. This is Nordstrom’s essential objective going ahead
The income which this development is
proposing can possibly keep Nordstrom on a development way that could expand
the organization’s potential as a worldwide retailer.
Objective is to
have the new stores by the principal year of business all in all make around
1.25 billion dollars’ yearly business. Throughout the following 3 years the
examiner of the organization are hoping to develop its procuring at a normal
yearly rate of 6%.
on product and logistic pattern
– June 2018
and export strategy
is one of the leading fashion industries which support more than 500 brands
which makes it worth flourishing. The traits of Auckland like high population,
ethnic diversity, multicultural society, government transparency, low level
corruption etc. makes it worth starting a business in.