Nordstrom Executive Summary

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When we apply the five forces model to Nordstrom’s external environment we are taking a look at the industry of department stores. The five forces include rivalry among competitors, threat of new entrants, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers. Rivalry among existing companies is high for the industry. Some of the competition in the industry is companies like Bloomingdale's, Macy’s, Saks Fifth Avenue, and Neiman Marcus. These companies have been in the market for a very long time and have been competing against one another. All the companies have a fair share of the market and are all fairly competitive. This is where the customer loyalty in the rival companies can have an effect on the competition.

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