Organizational Structure The most common organizational structure for implementing a corporate diversification strategy is the M-form, or multidivisional structure. In the M-form, each business area of the firm is managed through a division, but the names of those divisions may be different. Some common terms you may be more familiar with are companies, business groups,Continue reading “Ch. 12: Implementing Corporate Diversification”
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Ch. 11: Diversification Strategies
Types of Corporate Diversification The unique thing about Nordstrom is the way in which they view their own operations. It has been reported that the company views its operations in terms of full-line and off-price brands, rather than by offline or online channels, which emphasizes the importance of its brick-and-mortar stores for overall sales. TheContinue reading “Ch. 11: Diversification Strategies”
Ch. 10: Vertical Integration Strategies
As we turn to Part III in our coverage of Nordstrom, Inc. and what sets it apart from other large fashion retailers, let’s remember what we’ve already discussed up to this point. In Part I, we talked about the overall logic of strategic analysis and got to know Nordstrom as a company. In Part II,Continue reading “Ch. 10: Vertical Integration Strategies”
Ch. 9: Tacit Collusion – Cooperation to Reduce Competition
The Problem of Cooperation Patterns of choice represent decisions by players to compete, cooperate, or renege on a cooperative agreement. Insert the prisoner’s dilemma, but lucky for you, this isn’t a blog about economics so I’ll spare you the nitty gritty details of game strategy. However, it is still important to understand the types ofContinue reading “Ch. 9: Tacit Collusion – Cooperation to Reduce Competition”
Ch. 8: Flexibility – Real Options Analysis Under Risk and Uncertainty
Defining Flexibility and Options Face masks but make it fashion, right? I mean who would’ve ever thought we would live in a world where runway models are sporting personal protective equipment. As it turns out, surgical face masks are no longer just for nurses and doctors. In the midst of the historical COVID-19 pandemic, safer-at-homeContinue reading “Ch. 8: Flexibility – Real Options Analysis Under Risk and Uncertainty”
Ch. 7: Product Differentiation
Defining Product Differentiation Our Chapter 7 discussion will cover product differentiation and how it can set a company apart. For Nordstrom, product differentiation is critical to the brand’s image. But what is it exactly? Product differentiation is defined as a business strategy whereby firms attempt to gain a competitive advantage by increasing the willingness ofContinue reading “Ch. 7: Product Differentiation”
Ch. 6: Cost Leadership
It’s finally time for the first post of Part II as we continue to study Nordstrom, Inc. and what sets it a part from other companies in the retail industry. In Part II, our studies of Nordstrom will shift from the logic of strategic analysis as studied in Part I to a more precise focusContinue reading “Ch. 6: Cost Leadership”
Ch. 5: Evaluating Firm Strengths and Weaknesses – The Resource-Based View
Applying the VRIO Framework “Character. Intelligence. Strength. Style. That makes beauty.” – Diane Von Furstenberg Before we get into the nitty gritty, VRIO stands for (V)alues, (R)arity, (I)mitability, and (O)rganization. These four ideas are often brought together and analyzed under a single framework to better understand the return potential associated with exploiting any of aContinue reading “Ch. 5: Evaluating Firm Strengths and Weaknesses – The Resource-Based View”
Ch. 4: Evaluating Environmental Opportunities
Strategic Groups Analysis of Environmental Threats and Opportunities Identifying groups in an industry can significantly improve the quality of analysis when determining what threats and opportunities a firm might face when those groups are strategic, real, and meaningful. A strategic group is a set of firms that face similar threats and opportunities that are differentContinue reading “Ch. 4: Evaluating Environmental Opportunities”
Ch. 3: Evaluating Environmental Threats
Another Industry Force: Complementors “Your wardrobe should complement your skill set, never detract – or distract – from your assets.” – Nina Garcia Professors Adam Brandenburger and Barry Nalebuff consider one firm to be a “complementor” of another firm if your customers value your products more when they have this other firm’s product than whenContinue reading “Ch. 3: Evaluating Environmental Threats”
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