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What Is Nordstrom Competitive Advantage

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approach, 2017). For example, Nordstrom is an esteemed brand in the retailing industry, where they have the utmost income per square foot compared to any retailer in the country which is due to its hiring method, reimbursement patterns and culture, (Human resources: Human resource and competitive advantage, using the VRIO (value – rarity – imitability – organization) approach, 2017). The secret behind their success is, due to the fact that the company concentrated on each single sales executive who were considered to be the main key to contribute to Nordstrom’s competitive advantage (Barney & Wright, 1998). According to Barney et al (1998), the company provided prominent incentives-based emolument schemes which provided the employees to earn …show more content…

The competitive advantage provided by valuable and rare resources is merely temporary, unless there is a commodity/service that cannot be imitated by the competing firms, (The Question of Imitability the Temporary Competitive, n.d). The competitive advantage can be continuous only if the rivals face an expenditure shortcomings in reproducing the resources, (The Question of Imitability the Temporary Competitive, n.d). If the services/ commodity is easily reproduced by other firms in the industry, then that cannot contribute to the competitive advantage of the firm. Hence, it is important for the Human Resources to find an impalpable resource and potentiality which is difficult to copy or reproduce. Wilton (2014), states that valuable and unique abilities and resources, especially which are tangible are easily mimicked, than those which are nonphysical resources and capabilities. Goodwill, plans of action, exceptionally excellent employee motivating talents and management knacks are intangible resources, which are impractical to imitate, as per Wilton (2014). These resources and abilities contributes to the competitive advantage of a firm, along with value and

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In addition, the core competencies of the organization which include a strong financial ability, competent managerial function, and a superior brand with quality products and services can enable the company to gain competitive edges and fend off competition in the highly competitive

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Competitive advantage is anything that a company does better than its competitors. These things that create the advantage are what set them apart in supplying customer service, products, and relationships. (Ferrell & Hartline, 2011) These can include relational advantages, legal advantages, organizational advantages, human resource advantages, product advantages, pricing advantages, promotion advantages, or distribution advantages. These advantages can be real or perceived. (Ferrell & Hartline, 2011) The competitive advantage can either be something that is done better by a company or a weakness of the competitor.

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The Container Store may hold high employee expectation, but to compensate they reward these practices by offering members a higher wage. This company leads-the-market pay by offering nearly one and a half to two times more than the industry average. It’s hard not to be motivated by this. In fact, it seems most are motivated by the organization. According to their company web page, they have a 10 percent lower employee turnover rate than the industry average.

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Competitive advantage is a term used in the business warzone between commonly large companies that compete to obtain the highest costumer population for their business fields. Competitive advantage is literally an advantage that a company or an organization possesses which enables it to shine brighter than the other competitors in the competition; it is what makes your business unique in comparison to the others. The question now is how? How can you acquire a competitive advantage in the global market? To answer this question, you must first be familiar with three major determinants of acquiring competitive advantage: what to produce, for whom, and with whom you are competing.

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