1. What type of retailer is Nordstrom? Describe the characteristics it shares with other retailers of this type. I would say Nordstrom’s is a specialty store because of their service levels are high, assortment is narrow, price could be moderate to high, and the gross margin is high. According to a statement from the case study, Industry observer Lior Arussy calls Nordstrom’s business strategy “greed through love.” Nordstrom’s shares the same characteristics as Neiman Marcus, Bloomingdale’s, Macy’s, Saks Fifth Avenue and Lord and Taylor’s.
MGMT 4020 June 24, 2013 Homework Assignment #2 Competition is very high in the North American wholesale club industry. Every wholesale club wants to sell top-quality products at prices less than others in order to attract draw customers. And they all want to display low prices on pallets or inexpensive shelving, therefore, they have very low costs for store decor and fixtures, have comparatively low labor costs, and spent minimally on advertising and customer service. Five Forces Analysis 1. Bargaining Power of Buyers is moderate.
They believe in providing quality products to customer rather than cheap products. • Target Stores are more attractive then Wal-Mart. • Target Corporation is environment friendly they don’t sell firearms, tobacco and toy guns. • The top seller of Gift Cards in US. • It donates huge amount of profits.
1. Nordstrom is a department store. There are a variety of department stores in the States, including Macy’s, Saks Fifth Avenue, Sears, JC Penney, and Bloomingdale’s. Just like their competitors, Nordstrom offers clothing, shoes, accessories, and home decorations. Moreover, I think Nordstrom should be classified as specialty store because their sales emphasis on customer services in their department store.
Essay 3 When businesses find ways to internalize externalities they can make more money. Discuss why shopping malls charge a low price per square meter to department stores like Galeria Kaufhof, a medium price to stores like H& M, and a high price per square meter to jewelry stores and food vendors. “Externalities are the costs or benefits that affect people who are not directly involved in the production or consumption of a good or a service.” 1Thus, externalities are not limited to the parties participating in the market i.e. to producers and consumers but also affect other people in the society. Externalities cause deadweight loss which can lead to market failure.
As known that Costco is focusing on high quality of merchandises at relatively low prices, they have one condition in order to purchase merchandises at low prices, which is number of purchases. For example, to have one product that is cheaper than competitors they have to purchase more from original manufacturers. Therefore, Costco realized that they have to keep the sales volume to be high so they are still able to maintain this advantage. Because of this, they try to keep their slogan in customer minds that Costco has lower prices and they try to same membership money. However, there is a problem that Costco has to deal with is that their profits mostly from its membership fees instead its net income.
In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost. One might than pose the question, has this put them out of business (mom and pop store)? The answer is absolutely not, but rather, they too benefit from cheaper prices as they continue to buy in bulk and continue to operate as the name suggest, convenient
Chapter 14 Analyzing Managerial Decisions: Structuring Compensation pg 446 By: Tia Woods 1.) There are numerous ways that explains the difference between two firms dealing with compensation plans. One of the reasons why is how Parkleigh’s may believe the main reason of sales leads to sales incentives, and how having great customer service with nice, outgoing staff helps build a sale, and reflects on the high completion to customers. That’s like making the staff work harder to have a better visualization of the firm, from cleaning the dressing rooms, to making sure all the displays are showed to be impressed by customers so they can buy an item or two. All of these aspects would help raise store sales.
A) Purchase of office supplies B) Granting credit to a new customer C) Replacement of manufacturing equipment with more modern and efficient equipment D) Financing the firm with more long-term debt and less equity 6) Good capital investment opportunities are most likely to exist when: A) many firms compete to sell similar products. B) interest rates are high and rising. C) goods and services can be produced cheaply using readily available tools and technologies. D) a line of business is expensive to
Overall Wall-Mart is still expanding outside the United States, Particularly in market where it entered by acquiring a strong retailer. Still given Wal-Mart formidable record at home, the company’s recent setbacks have exposed a rare vulnerability oversea. Wal-Mart's ability to replenish their shelves four times faster than its competition is just another advantage they have over competition. Wal-Mart leverages its buying power through purchasing in bulks and distributing the goods on it' own. Wal-Mart guarantees everyday low prices and