Nordstrom, Inc is an upscale retailer founded in 1901(see www.nordstrom.com) In Nordstrom’s 2001 annual report pg 7 a sale managers states “Nordstrom has always been defined by the customer experience- and it’s experience that draws customers in and keeps them coming back” Similarly, an article title “Nordstrom accelerates plans to straighten out business” ( The wall street journal, October 19, 2001, B4) describes Nordstrom’s “ glamorous image and highly regard sales force that once made it a retail success story” but also reports Nordstrom’s efforts to battle financial difficulties. Read this article and other sources you can find in order to address the following questions:
a. What is Nordstrom’s value proposition as defined?
b. What measures did Nordstrom’s take to reduce costs? How might these reductions affect Nordstrom’s ability to fulfill its value proposition?
c. What fixed costs did Nordstrom incur in hopes of long term benefits? Can you find reports of Nordstrom enjoying its anticipated benefits?
d. How do Nordstrom’s efforts relate to cost volume profit analysis?