Business Model Canvas: Nordstrom

Business Model Canvas: Nordstrom:

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Executive Summary

Nordstrom is a leader in fashion and customer service. With over $12 Billion in revenue in 2013 including over 3% growth from 2012, the company continues to differentiate themselves through their value proposition. Nordstrom is known for exceptional customer service including personalized shoppers and providing fashion forward merchandise.  They are expanding and continuing to invest in this space with the acquisition of Trunk Club.  Trunk Club is the leading men’s personalized clothing service. 

Nordstrom is also expanding their online sales in both the full price and half price customer segments.  As they expand further into online sales their overall cost structure will go down as it is less expensive to support online orders than brick and mortar stores. 

The key partnerships for Nordstrom include fashion designers and clothing manufacturers. Morningstar’s analysis of Nordstrom indicated their competitive advantage to turn inventory faster than the competition.  This enables them to stay focused on their strategy to be a fashion leader. Faster inventory turns also suggest a flexible supply chain set up with the key partners.  A key resource is the ERP system that helps in the management of inventory and customer order fulfillment. Another key resource for Nordstrom is their sales team. There is an incentive structure in place consisting of base pay plus commission to encourage excellent customer service. 

Nordstrom has laser focus on their value proposition and this enables them to be successful. They are investing in being a fashion leader with outstanding customer service. The key resources, partnerships and activities (including employee incentives) all line up well to support Nordstrom’s business model.

References

"Shared Publication." Nordstrom, Inc 2013 Annual Report. Nordstrom, 10 Mar. 2014. Web. 16 Aug. 2014. <https://materials.proxyvote.com/Approved/655664/20140310/AR_198982/>.

"Webcasts and Presentations. JWN: Earning Call Q2 2014" Nordstrom Investor Relations. Nordstrom, n.d. Web. 16 Aug. 2014. <http://investor.nordstrom.com/phoenix.zhtml?c=93295&p=irol-audioArchives>.

"JWN : Nordstrom Inc Analyst Report | Analyst Report." JWN : Nordstrom Inc Analyst Report | Analyst Report. Morningstar, 15 Aug. 2014. Web. 16 Aug. 2014. <http://analysisreport.morningstar.com/stock/research?t=JWN®ion=USA&culture=en-US&productcode=MLE>.

"Company Research: Nordstrom's." Company Research: Nordstrom's. N.p., n.d. Web. 15 Aug. 2014. <http://legacy.earlham.edu/~hendest/nordstrom.html>.

Kucera, Danielle. "E-Tailor Startups Challenge Amazon in $200 Billion Market." Bloomberg.com. Bloomberg, 7 Aug. 2012. Web. 16 Aug. 2014. <http://www.bloomberg.com/news/2012-08-08/e-tailor-startups-challenge-amazon-in-200-billion-market.html>.