Saks, Neiman Marcus, Nordstrom
The retail industry is very large and full of many different strategic groups. There is a strategic group that focuses on the finer tastes in life and caters to a more upper-class market. Three dominant members of this group are Saks Incorporated, the Neiman Marcus Group, and Nordstrom. Through e-commerce strategies we will be able to see the similarities and differences in these firms core competencies and business strategies.
Since 1998, Saks Inc. has opened forty-seven new stores. There capital spending has increased to over $1.4 billion and they have upgraded or remodeled the majority of their stores. (Saks pres. P.7) Saks has eighty-eight million dollars of cash on hand and a credit line of seven hundred million dollars. (Saks pres. P.8) Saks Inc has also reorganized into two distinctive groups; the Saks Department Store Group (SDSG) and the Saks Fifth Avenue Enterprise (SFAE).
Saks Department Store Group targets the traditional department store. Their motto is "The Best Place to Shop In Your Home Town". (Saks pres. P.4) The Saks Fifth Avenue Enterprise targets the luxury marketplace. Their motto is "The Most Inviting Luxury Experience". (Saks pres. P.4) Both divisions of Saks are better strategically positioned to target their group of customers.
As mentioned, Saks is divided into two divisions. The Saks Department Store Group's strategies are having merchandise incentives, an enhanced shopping experience, and focused marketing. (Saks pres. P.22) These strategies present customers with ideas of what they need to have or what is in style. The idea is a floor presentation that places the customer in a situation where they feel they would lead a better life if they owned the item being displayed to them. (Saks pres. P.23) One of the key aspects of this strategy is product differentiation.