Posts by: Tim J. Smith, PhD
Going into the great recession, many commentators suggested and corporations undertook across the board price cuts. Many, but not all. Nordstrom took a different route. The results of their approach are in: better customer attraction, better profits, better post-recession positioning.
In this article, we will examine some key strategic decisions made by Nordstrom which enabled their counter-trend approach to triumph over the oft quoted “best practices”.
More
“In an authentic world failure is something you embrace. It’s almost a noble pursuit. I come from that world—it supported me in…
More The game in business markets has changed. The opportunity landscape has shifted from the stalwarts of North American and Europe to the onetime turbulent and unstable emerging markets. Furthermore, the pricing power that shrank to the ether is returning to the tangible as markets return to growth.
These are bold claims and require bold reengineering of corporate strategy. Before you the reader consider these to be audacious statements from an ill informed outsider on unimportant and irrelevant industries, let me provide the evidence.
More “There’s so many things that have been said over and over again that need to be said again and again,” Soliloquy From…
More In the last weeks of March 2010, just before the media hoopla hit a crescendo on the release of the first Apple iPad, Sony took a shot to establish a more tenable position within the e-Reader market by dropping the price on the Sony Pocket Reader to $169. Is this the beginning of a standards war or a last ditch attempt to move units before Sony finds itself left in the wake of the Apple iPad?
More Ah, March, we all get to be Irish for a day. “May the dust of your carriage blind the eyes of your…
More The recession has tested even the most resilient business model. Through it, Nordstrom has glowed while Abercrombie & Fitch glowered. What caused the disparity in performance between these two strong firms? Their pricing strategies.
More “Here lies a humanist.” Abdurrahman Wahid, First Democratically Elected President of Indonesia, 1940-2009 Utility defines value. Does your new idea meet this…
More Since August 2009, Urban Canine, located in the Wicker Park neighborhood of Chicago, has been letting dog owners use washing facilities, shampoo, ear-cleaning liquid, towels, and even blow driers for self-wash dog grooming at a price of the customer’s choosing. How has this Pay What You Want (PWYW) promotion faired for Urban Canine? I caught up with Tony Sauer, owner of Urban Canine, to understand how the program’s performance.
More “The purpose of business is to create and keep a customer.” Peter Drucker, 1909-2005 The relationship management continuum begins before the initial…
MoreAbout The Author
