In the article, ”How Nordstrom built the world’s best customer-service machine”, Toller(2015), states the core reasons as to why it is successful in what it does aside customer service. Focusing on things that help a company achieve their goals is crucial. In this case, recognising how relevant employee empowerment is to a company is one of the top reasons as to why Nordstrom is seen as an upscale fashion retail company that is incredibly out performing other retail industries. Use of good judgement demonstrates this. Being able to identify its competitive advantage is the central reason why Nordstrom owns a high ranking. Treating customers with the highest quality hands ever is what it greatly appreciates and values.”Nordstrom …show more content…
Even though Nordstrom is able to meet customer expectations, many other abilities make it a hit. The first key business concept is Nordstrom being able to identify its main competitive advantage. The second concept is Nordstrom being able to empower its employees. Lastly, the third concept is Nordstrom applying the use of E-commerce or online services. Such business concepts is what improves on a company’s operating levels, such as Nordstrom. Issue 1. The ability to identify competitive advantage. Competitive advantage, being a distinctive factor that many customers value, is one of the greatest components that Nordstrom is able to identify. This is with regard to its customer service. Having the ability to out compete a number of retail industries and stand out as a sole winner is what Nordstrom has been recognised for. Appreciating customer existence is key and the way Nordstrom depicts it, is uniquely mind blowing. The way you make your customers feel at the last interaction determines whether you are making the best out of your competitive advantage, whether you are trying or whether your not just doing it right. Feelings and emotions play an enormous role in a …show more content…
Who are the most important people to Nordstrom? Customers! Who are the closest to them? Employees! Making employees feel as though they have increased autonomy and preference to make desicions in the company is what defines employee empowerment.. Businesses are often reluctant in offering leadership positions to frontline managers due to fear that they might make mistakes. Nordstrom is not afraid to do that. Employees feel more strengthened to work and produce better results for the company when granted a part of ownership. In Nordstrom, employees are empowered through the only rule they are told they must follow. ”Use good judgement in all situations,” from the article, Toller (2015). Employees are given a high degree of freedom and responsibility to make some desicions concerning customers. ”All employees are given a usual degree of latitude to make their own calls to customers about how to handle problems, Mckibbin says.” Employees are given total responsibilty over the customer. This is to make them feel good at the end of the day, when they have solved certain situations. In today’s world companies are trying to adjust to such strategies. Meanwhile, a company like Nordstrom sought it a long time ago. Interestingly from the article Toller (2015), he found that security guards and house keeping staff are also seen as a big part of the company. They
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
From the employees’ perspective; they are managed someone with experience in their same specialty who can effectively understand and review their work. Furthermore, they can move up within organization, which gives a reason for them to be loyal to the job. They also have the opportunity to work with others in their field, which allows for knowledge sharing and learning new skills. From the managers’ perspectives; this would make their jobs easier and makes them able to supervise the individual’s performance of their team members to distribute recognition, rewards and punishments accordingly. This has created an environment that hugely corresponds with Target’s core strategy, differentiation. Many of the shoppers have expressed their satisfaction with the services that provided by Target and more specifically with how friendly the staff
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.
Paco Underhill has created a way for stores to draw more customers in and spend more money by getting in the mind of the customers. I found some of Underhill’s theories to be true. Underhill’s theories have helped provide research of the actions of consumers inside of American Eagle, Meijer and Hollister, these theories include, the need for shoppers to acclimate to their surroundings, the way customers turn into stores, and by placing most used products in the farthest places away from the
Service wins the game.” As Tony Allesandra states, in order to have+ a successful business, customer service must remain a priority. It is also proven that shoppers are more likely to return to retailers with good customer service over those without. This past summer, my mothers’ best friend was getting married, so my mom and I drove to the mall. Once we had found a parking spot, we both walked towards Banana Republic; I began to walk faster, as if I was being pulled like a magnet, and threw inspiring words back to my mother to pick up her pace. In no time, my mother and I were walking through Banana Republics’ entrance. The greeter said hello and asked us if we were looking for anything in particular. I told the greeter- named Lacey- about my mothers’ issue of not having a dress to wear. Lacey immediately noted my moms’ height and age which would narrow her down her choices, yet she still ended up finding several options that both my mother and I loved. With the help of Lacey, the hardest part of this shopping trip was trying to decide which dresses to put back; my mom ended up wearing lovely textured grey dress that fell just above the knee accompanied with a modest v-shaped neckline. Banana Republic not only made a sell with their superior customer service, but they also gained the trust of my family and free advertisement because my mother now recommends Banana Republic to all her friends. In
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
Lowe’s tries to foster collaboration and strength in a variety of methods; many are through leadership training tracks and supporting employees and their families. During times economic uncertainty, it is important that individuals know that they an organization that cares and supports them. In a comprehensive report released by Lowes, the company detailed improvements Lowe’s achieved in important focus areas, including the health, safety and engagement of employees, the company’s advancement towards its 2020 goals and its partnership with suppliers to maintain the highest ethical standards and improve the products it sells (Lowe’s Companies, 2015a). According to Lowe’s Companies (2015a), “For the first time in Lowe’s annual Employee Opinion Survey, all of its U.S. stores, distribution centers and customer support centers all reached the company’s benchmark engagement goal of 65 percent, indicating a highly engaged and satisfied staff” (para 4).. “Career Bliss recognized Lowe’s as one of the 10 happiest retailers to work for in 2014” (Lowe’s Companies, 2015, para 5). To keep an organization running efficiently and effectively, you need a good customer base; you cannot achieve this without helpful, courteous and willing employees. Lowe’s understand that to keep up in the industry, they need to ensure they employees are taken care of
First, when shopping, a big factor that will impact a customer 's experience is the customer service. Whether it’s from a simple “hello”, or an employee going out
According to an article on the Wall street journal, Macy’s had a lot of problem with their customers service, This articles mentions that a part of their training problem, “Several Macy's sales associates sat in a training room in the chain's Christiana Mall store recently hashing out sales-floor scenarios. Mary Martin, Macy's vice president of learning and development, directed the group's attention to a card at the center of the table with a statistic: Forty-eight percent of Macy's customer complaints are focused on interactions with sales associates. The training session is part of a new strategy by the department store to improve its track record on customer service, which in recent years has dented the reputation of the storied retailer, lowered its scores in annual customer service rankings and most likely slowed
Nordstrom’s retail positioning strategy provides it with the competitive edge it needs to differentiate it from competitors who also serve similar markets.
One of the most important areas to consider is customer service. The atmosphere of a store
The most significant component of Wal-Mart’s success was the way it treated its employees or as they are known as in Wal-Mart “associates”, the beliefs or rules of the Wal-Mart culture makes associates want to provide excellent service to its customers. During visits Walton encouraged associates to pledge to greet customers and ask if they assist them or walking into a Wal-Mart store customers are met by a greeter, an associate who welcomed them and handed out shopping carts (Farhoomand, 2006).
Competitive advantage is a driving force in Walmart’s business model. With 2.2 million associates, 10,700 retail stores and 245 million customers served weekly in 27 countries, Walmart requires an array of information systems functioning harmoniously to meet all of the requirements and expectations of their employees, customers and communities (Walmart, 2013). Mr. Walton believed that sharing profits with and motivating employees and partners were rules of building a business. Sam Walton once said that “our people make a difference” referring to the associates that he viewed as partners that should share in the profits of the company (Wal-Mart Stores, Inc., 2014). Walmart associates process hundreds of millions transactions every week in their retail stores. However, the retail store is only one component of Walmart’s vast supply chain and logistics network which are largely responsible for their continued success. D...
A firm 's competitive advantage is achieved through offering customers a greater value, either by way of lower prices or by providing greater benefits and service that justifies a higher price. Nordstrom strengthens its competitive advantage and generic strategy through cost leadership and differentiation in order to differentiate themselves from other high end retailers. Nordstrom has consistently maintained a unique reputation from their establishment in 1901 to the today. Since developing a strong competitive advantage from inception, Nordstrom has been able to adapt to changing environments and market conditions to maintain their success. Nordstrom has set the bench mark in the retail sector through customer service and product quality.
We always make sure that when they come to our stores they experience the best shopping and that they find what they want to buy and we have a reason for them to buy. We make sure that our merchandising is up to standards and it motivates the customers to shop in our stores.