From its start in Seattle in 1901 by Swedish immigrant John Nordstrom, Nordstrom's approach to business as a fashion retailer was to provide exceptional customer service, selection, quality, and value. This approach remains Nordstrom's hallmark today. Nordstrom's 350 stores generated almost $15 billion in sales in 2022, yielding 14% ROIC. Nordstrom is a niche company, focusing on a relatively affluent customer base. What truly differentiates Nordstrom from many of its rivals is its legendary excellence in customer service. The customer service ethos is central to the culture and organization of Nordstrom.

Case Discussion Questions

1. What resources underlie Nordstrom's historically strong position among apparel retailers in the United States?

1. How do these resources enable Nordstrom to improve one or more of the following: efficiency, quality, customer responsiveness, and innovation?

1. Apply the VRIO framework and describe to what extent these resources can be considered valuable, rare, inimitable, and well organized.

1. How do Nordstrom's Rack and e-commerce offerings fit into the big picture? Do these offerings benefit from Nordstrom's well-established resources and capabilities?

1. What must Nordstrom do to maintain its competitive advantage going forward?