) Externalenvironment v IndustryoverviewNordstrom (JWN) is a chain of 290 stores in 38 states inUnited States as of fiscal 2014. The company operates as a leading retailer inapparel and accessories. There are mainly two reportable segments of thecompany which are retail and credit.
The retailsegment is the main segment of the company, whereas credit segment is more of asupport segment that provides payment products and services. (Market Realist , 2015) v Competitiveenvironment Nordstrom truly sets itself apart from with itsexceptional customer service, and its top quality salesperson. The serviceNordstrom offers is what sets the company apart from many competitor. Nordstromhas notable competitors in the retail industry that offers high fashion in asimilar department store format.
Other retailers that specializes in high-endfashion include Macy’s, Dillard’s, Neiman Marcus and Saks. v DemographicenvironmentAuckland is the New Zealand’s most populous city. Aucklandis shelter to over half of New Zealand’s overseas born population and itsethnic diversity reflective of global city. According to the Demographic report card, Aucklandarea 2016 it shows that about 68% of the population in Auckland is in the agegroup 15 to 64 years. Between the 2006 and 2013 census, the Auckland populationincreased by 8%, compared with the population growth of 5% in New Zealand overtime.
Where 39% of the population are born overseas. Auckland’s population isconsidered as working age population. (Auckland Council , 2017) v Social andcultural environment The way of lifeand society in New Zealand is affected by numerous things including the Maoriindividuals and the varying European heritage of the other inhabitants. NewZealand has multicultural society and people are welcomed all over the world. Theculture is one of self-reliance, which has become out of hundreds of years offighting for themselves because of their remote area. New Zealand’s is oftenconsidered to be classless society.
v Politicaland legal environmentNew Zealand’s political and economic stabilityprovides a safe environment for investors and businesses. It is highlyinternationally ranked for its government transparency, democratic institutionand low level of corruption. It’s a good option to invest, New Zealand as it has astable and globally competitive economy.
They have positive economic growth for33 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, anefficient tax regime, an open political system and investment in innovationhave all given rise to an efficient and competitive economy. (New Zealand Trade & Enterprise , n.
d.) v TechnologicalenvironmentNew Zealand has the fastest growing technology sector.Technology is transforming vast number of New Zealand jobs. Many existing jobwill be replaced by computers and automation. Besides the fact that New Zealand has fastest growingtechnology but it lacks a vision for how to deal with technology. New Zealandis not properly managing the opportunities and issues around the reduction inthe 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 v Organizationbackground Nordstrom is anAmerican chain of luxury department stores headquarters in Seattle, Washington.
It was founded in 1901 by John W. Nordstrom and Carl F. Wallin, the companybegan as a shoe retailer and expanded its business to clothing, accessories,handbags, jewellery, cosmetics, and fragrances. There are some store that alsocarry wedding and home furnishing department.
The company has349 stores operating in 40 states. Today Nordstrom is one of the nation’sleading 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) v ProductsNordstrom deals in all kind of designercollection, shoes, men & women apparel, kids clothing, home decors andbeauty products. Nordstrom has developedits own niche in retail industry as a mid-tier retailer such as Macy’s Inc. andhigh-end, luxury retailers including Saks Fifth Avenue and privately-heldNeiman Marcus. It offers a broad array of 500 brands, targeted towards thewhole family. Nordstrom differentiate itself by offering inclusive selection ofquality merchandise at affordable price. v Channels Pricing Strategies:If the product which is ordered does not deliver within twoweeks of order date, Nordstrom follows the practice to permanently reduce theprice of an item you purchasedThey happily adjust the price which is on sale for thecustomers.
Conditions Apply: Nordstrom canonly make one sale adjustment per item. The item mustbe in the same colour and size, and in stock at Nordstrom. All designergoods originally purchased at a sale price and items included in special ExtraSavings events are excluded from any adjustments. Core CompetenciesThe company’s success is based on its strategy ofproviding superlative customer service. Associates are encouraged to act as entrepreneursand build strong personal customer relationships with customers clients.
The core competencies that set them apart aretheir sales employees. Nordstrom values employees as their most valuableasset which every company should do. Promotional ActivitiesIt belongs toevery type of social media. It advertisesits new arrivals on Facebook and twitter.
Each of its stores has an Instagramaccount where they post different outfit ideas, or new products that havearrived in store. Nordstromalways make every effort to let all customers know about what is coming in andwhat the current trend is. They servicewith many fashion conscious customers so keeping them in the loop about what isbeing sold helps to provide them optimal customer service. Promotionalsale emails and phone calls are sent to promote it.
Nordstrom card holderscan easily access to all of their sales and bonus reward opportunities so theywill continue to shop with them. They make sureall date and times of the sale are clearly stated. They encouragetheir sales people to develop new personal relationships every day. Nordstromalways encourage them to solicit new customers but also maintain relationshipswith the current customers as well.
ORGANIZATIONSTRUCTURE:The organizational structure of Nordstrom, will includeBoard of Directors as the Decision making Committee, under them there will beTeam of all departments Executives and Store as well as Department Managers.This all senior members plays a very important role in making company’s growthand development strategies as well to keep in top brands in the market. The company considerall its employees as an asset not as a liability. Human Resource conducts somany training sessions to develop their employees. StrengthsNordstrom’srevenue performance is strong and it has good reputation among customers whichincrease its chances of success in Auckland. As estimated, about 68% of thepopulation in Auckland is in the age groups 15 to 64 years who are brand andfashion-conscious. Nordstrom provides customers with best services andproducts. So, well established name ofNordstrom can imbibe trust within them.
Moreover, Nordstrom operates inclothing, footwear, bedding, jewellery, beauty products, café, furniture,houseware category which will target wide variety of people of Auckland whichin turn will contribute in its success. Its many years of experience enables itto make adjustments in sales, inventories etc. as quickly as possible whichwill benefit it to do business in Auckland successfully. Other factors ofAuckland like high population, multicultural and self- reliant society,political and economic stability, technological advancement provides a safe andconvenient environment for business. High number of overseas- born Auckland canbring new skills, new ideas, a diversity of perspective and experiences whichcan make our business more innovative and productive. Auckland port and airportlink to global markets make it easy to import and export our products.
WeaknessesPresence ofmany 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 averageand 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 theworld which may make it less-known fashion industry. OpportunitiesEstablishingNordstrom in Auckland will open the doors for developing new relationships,market expansion and will be a step ahead to flourish globally. Working withnew and diverse population will bring new ideas which in turn will result ininnovations. ThreatsPeople preferto buy the products of already existing brands or from the market which belongto their country.
It will take time to win trust. So bringing the new conceptcan be risker because of which emotional connection with customers maydecline. Strong competitors likeH&M, Topshop, and Zara etc. are the biggest threats we are having in theway to success. The difference in the value of currency increases thepossibility of foreign currency exchange risk. Lastly, legal and regularityfactors like unfavourable tax consequences, foreign and local laws can pose theproblems to do business. ESTIMATEDFUNDS REQUIREDToset up Nordstrom in Auckland, organization should require to make an expectedarrangement. As a standout amongst the best retail organizations in NorthAmerica over the previous decade, Nordstrom has ready to grow a business thathas brought the best items with outstanding administration and the business’most uncommon Omni-channel stock idea where clients can augment Nordstrom’scapacity to convey stock to them paying little heed to time or area.
Nordstromcan venture into being a national organization with the effective dispatch ofthe Nordstrom Rack off value deals division. Nordstrom has possessed thecapacity to extend its objective clients by giving their clients decisions inview of cost and also accessibility. Thereason for this venture Nordstrom will make is for the extension of our retailoperations outside of North America. As they can effectively develop theirNorth American business.
Presently it’s a great opportunity to get the chancesto extend the brand to nations hoping to have American retailers venture intotheir nations, for example, New Zealand. FINANCINGAtthis point Nordstrom in light of evaluations should have accessible long haulfinancing basically with a specific end goal to set up calculated systems. Thelikeliest of sources will be the securing of here and now to set up singlestore at first. Licensing $300,000 Equipment and Land $10,000,000 Human Resources $1,000,000 Construction/Design $4,000,000 Marketing $ 50,000 Other $ 4,800,000 TOTAL $20,150,000 The aggregate cost of the venture might be differ asper the change in political and lawful condition.
The budgetary investigationfinished for this task Nordstrom will require at least 1.5 million square feetfor floor space added to meet long haul objectives set by officials. This isthe motivation behind why development is presently being arranged Keeping in mindthe end goal to begin these business is by authorizing a nearby retailgathering to deal with the production of and the resulting support of ourstores under usage of a permitting understanding. Nordstrom will consent toback not simply block and concrete, but rather make a compelling on the web andstore production network organize that incorporates a more noteworthycentralization of internet acquiring. Needs – with a specific end goal todevelop their retail business to new regions Nordstrom should have the capacityto meet criteria in light of establishment principals set up as Nordstrom hashoped to develop and extend their business as a major aspect of their generalmoney related system.
Nordstrom should likewise ensure that the any area theyare taking a gander at that from a calculated point of view and a level ofadministration outlook that development can live up to Nordstrom’s level ofdesires. ESTIMATED REVENUE FOR THE NEXTTHREE YEARSNordstrom will probably give theseclients another experience where they can show signs of improvement esteem fortheir cash. This is Nordstrom’s essential objective going ahead The income which this development isproposing can possibly keep Nordstrom on a development way that could expandthe organization’s potential as a worldwide retailer. Objective is tohave the new stores by the principal year of business all in all make around1.
25 billion dollars’ yearly business. Throughout the following 3 years theexaminer of the organization are hoping to develop its procuring at a normalyearly rate of 6%. IMPLEMENTAITONPLAN STRATEGY TIME Preliminary Plan Development January 2018 Auckland(NZ) Market Research February 2018 Plan Completion March 2018 Funding April 2018 Focus on product and logistic pattern May – June 2018 Import and export strategy July 2018 Networking August 2018 Preparing final operation September 2018 Promotion October 2018 CONCLUSIONNordstromis one of the leading fashion industries which support more than 500 brandswhich makes it worth flourishing. The traits of Auckland like high population,ethnic diversity, multicultural society, government transparency, low levelcorruption etc. makes it worth starting a business in.