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Growth Strategies Case Study
Case Title:
Nordstrom : The Fourth Generation Expansion Strategies
Publication Year : 2006
Authors: Vineetha Ravipati, Sumit Kumar Chaudhuri
Industry: Apparel and Accessories retail
Region: US
Case Code: GRS0198
Teaching Note: Available
Structured Assignment: Available
OR
Abstract:
Nordstrom, one of the largest specialty retailers in the US, was started as a shoe store in 1901 by John Nordstrom and his friend Carl Wallin in Seattle. When its shoe business started to decline, the second generation Nordstroms diversified into apparels. Under the third generation Nordstroms, the company went public. The third generation of Nordstroms handed over the reins of the company to John Whitacre under whose leadership, the company witnessed a decline in profitability due to its decentralised buying structure and overall customer dissatisfaction. The fourth generation Nordstroms took over the company after Whitacre’s resignation. They restructured the company, brought in new technologies, expanded into new markets and transformed the company into one of the largest family-run businesses in the world.
Pedagogical Objectives:
- To understand the traditional business model of Nordstrom through three generations
- To analyse the reasons behind the financial downturn of Nordstrom under John Whitacre
- To discuss the expansion strategies adopted by the fourth generation Nordstroms
- To discuss the dynamics of a typical family-run business.
Keywords : Apparel Retailer; John Nordstrom; Return Policy; Commission selling; Faconnable; Inverted pyramid structure; Customer service; Growth Strategies Case Study; Decentralised purchasing process; Merchandise mix; Perpetual inventory; Multi-channel integration; Fashion industry
Contents
:
Nordstrom: The Family Held US Fashion Department Store
Nordstrom’s Inverted Pyramid Structure
Various Segments of Nordstrom
Expansion Strategies Under the Fourth Generation Nordstroms
