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Lower costs lead to higher profits for Nordstrom's. A low cost leader can undercut rivals on price… … "Cost Advantages (Nordstrom's)" has a significant impact, so an analyst should put more weight into it. "Cost Advantages (Nordstrom's)" will have a long-term positive impact on the this entity, which adds to its value. This statements will have a short-term positive impact on this entity, which adds to its value. "Cost Advantages (Nordstrom's)" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it.