The document discusses Nordstrom's competitive advantage and management strategy. Nordstrom was founded in 1901 as a family-owned shoe business and has since grown to 59 department stores across 6 states. Nordstrom gains a competitive edge through its focus on superior customer service. However, Nordstrom's commission-based compensation system for sales clerks has faced legal issues for potentially incentivizing off-the-clock work. In response to lawsuits, Nordstrom implemented new procedures to ensure compliance with labor laws.