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Retailers need to define their target markets and then decide how they will differentiate themselves from competitors who also want to serve those markets. For example, different retailers offer different products, have different customer service policies, and design their stores differently. The decisions a retailer makes must be consistent with this overall positioning strategy and provide clear value to customers.
Consider the retail positioning strategy of Nordstrom's. In an essay:
Explain some of the choices that Nordstrom's has made that distinguish it from other retailers, such as Target.
Explain the likely intention behind Nordstrom's retail positioning strategies. How does Nordstrom expect these positioning strategies to attract customers and create a distinct competitive advantage?
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When firms pursue both differentiation and cost reduction simultaneously some get stuck in the middle (resulting in low profitability) and some do not. What accounts for the difference between these two kinds of firms?
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