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Nordstrom Expansion into India Thomas Slagle MBA 640: Milestone 2 February 3, 2019
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Risks: Internal Nordstrom, Inc. is a leading fashion retailer offering clothing, shoes and accessories for men, women and children (Nordstrom). The company is based around customer service and staying ahead of the fashion lines by innovating there product to adjust to the trends of today. Starting from a small shoe shop in Seattle to a leading fashion retailer, this commitment to following trends and customer service has proven itself useful to the success of the company. Nordstrom currently has 380 stores in 40 states and Canada. Customers are served at 122 department stores in the U.S., Canada and Puerto Rico, 244 Nordstrom Rack locations, six Trunk Club clubhouses (a personalized styling service), 3 Jeffrey boutiques, two clearance stores and three Nordstrom Local service concepts (Nordstrom). In addition to these physical stores, Nordstrom also serves customers online 96 countries through Nordstrom.com. The structure that Nordstrom has been able to build and the customer base that has remained loyal to the company has caused it to gain in notoriety in the retail world. This growth has been in the US and Canadian markets, but with growing competition it will be important for the company to venture into new and upcoming markets. Expansion into the Indian Market will be a lucrative business move for Nordstrom to grow their business. With every major business move there will be internal risks and opportunities with Nordstrom moving into the Indian market. The most significant internal risks for this expansion are communication, resources, international expansion education and public scrutiny. As with every large scale expansion, internal groups will not see the need to divert away from the company’s domestic expansion plan. Many of these conversations can
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quickly lead to disagreements and dead ends due to "India being different", and is much different than its US and Canadian partners. Adding another store in the US will follow a template from beginning to end, but a first store in India will divert from that plan in various ways, such as connecting with government officials to approve of the expansion plans, customizing and localizing the brand to fit India’s culture and not being able to easily visit the store location before, during and after the plan of action executes. In order to limit the risk and increase success it will be important to include these resources in the plan for expansion. By internal personnel accepting that with this expansion, the template on how to open a US store will be altered given the fact that India is not different but the opportunity to broaden the business into this market will outweigh the issues of changing the model.
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