The Success of Nordstrom and Tesco - Assignment Example

Nordstrom Although Nordstrom already has a successful loyalty program, it may think of a way to include all its s, and that is through first-time purchase cards and long-term membership cards. Not everyone can afford to spend $10,000 at Nordstrom annually. A first-time purchase card would appeal to those who do not usually shop at Nordstrom but want to give it a try. Membership cards would be for more regular customers who don’t meet the criteria of the Fashion Rewards Program.2. Nordstrom’s greatest risk comes from the increase in online shopping.

Nordstrom’s success largely comes from its customer service focus, but as shoppers move to a more virtual shopping experience, Nordstrom’s advantage in this area will be negated somewhat. Nordstrom’s biggest competitors will come from the online shopping industry. Tesco1. Tesco has already established itself as the market leader in the United Kingdom, so there is not much more improvement on offer there. Of course, Tesco will still continue to add customers, but at a much slower rate than in previous years.

One area that Tesco could look at is opening stores in poorer countries such as Bangladesh, Ethiopia, and Bolivia, to name a few. Shoppers in these countries do not have the same disposable income as westerners do, so Tesco would have to target these poorer countries will non-conventional methods.2. Tesco can take its customer loyalty programs to the next level by offering it to children of parents who are already Tesco customers. This way, Tesco can gain a customer early in life and will have a lifetime of spending habits from which to work.