Blue nile case analysis summary. Blue Nile Case Study 2022-10-13
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Blue Nile is a leading online retailer of diamonds and fine jewelry. The company was founded in 1999 and has since become a major player in the industry, offering a wide range of high-quality products at competitive prices. In this case analysis, we will examine the key factors that have contributed to Blue Nile's success and explore some of the challenges the company has faced in the past.
One of the main factors contributing to Blue Nile's success is the company's focus on providing a convenient and hassle-free shopping experience for its customers. Blue Nile's website is user-friendly and easy to navigate, making it simple for customers to browse and purchase products. The company also offers a variety of payment options, including financing options, which make it easier for customers to afford high-end products.
Another key factor in Blue Nile's success is the company's commitment to offering high-quality products at competitive prices. Blue Nile sources its diamonds from reputable suppliers and has strict quality control measures in place to ensure that all of its products are of the highest quality. The company also offers a wide range of products at different price points, making it accessible to a wider range of customers.
Despite its success, Blue Nile has faced some challenges in the past. One of the main challenges the company has faced is the intense competition in the online retail market. With many other online retailers offering similar products, it can be difficult for Blue Nile to stand out and attract customers. In addition, the company has faced criticism from some customers who have reported receiving lower quality diamonds than what was advertised on the website.
To address these challenges, Blue Nile has implemented a number of strategies to improve its competitive position. These include expanding its product offerings, improving its website and customer service, and investing in marketing and advertising efforts. The company has also implemented additional quality control measures to ensure that all of its products meet the high standards its customers have come to expect.
In conclusion, Blue Nile is a successful online retailer that has achieved significant growth and market share in the diamond and fine jewelry industry. The company's focus on convenience, quality, and affordability have been key drivers of its success. However, like any business, Blue Nile has faced challenges and has had to adapt to changing market conditions in order to maintain its position as a leader in the industry.
Blue Nile Diamond Retailing Case Study: SWOT and PESTLE Analysis
Opportunities Improving their communication with the consumers is a significant opportunity for the company to gain a larger consumer segment in the market. Having a chain of physical stores will give those customers an opportunity to purchase from Blue Nile who otherwise would not purchase because of the risk of making this type of purchase online. Some issues with Blue Nile that could use some improvement is with their marketing efforts, stock options and there expenditures into international markets. Customers are able to choose and design their own ring with options such as clarity, size and the shape of the diamond. Other than that, the company also manufacture its own gems and diamond. Competitive forces facing Blue Nile Inc and other companies in the industry Like other industries, the online jewelry industry is very competitive, and puts each of the business in the race to success. By ensuring that suppliers are selected on a competitive process, Blue Nile Inc has been in a position to counter the forces of supplier bargaining power Thompson 278.
The easy availability of diamond and other gems has also made competition to increase of late. There are synthetic diamonds, manmade jewels and alternative jewels. Blue Nile also has an advantage in facility operating costs. The client base The active client base for Blue Nile is the upper class and some of the middle class people who are predominantly getting into engagements. Changing expense for the consumer is essentially none existent because they can switch to another company if they do not like the cost, customer service, or other things connected with their purchase. Learn More Competitive Forces Following M.
It is based in Seattle, Washington and competes with online retailers such as James Allen, Belgium Diamonds, and Ringsberry. The business and corporate level strategies have clearly highlighted its efficiency and competitiveness in the online jewelry industry. Despite the high threat of supplier bargaining power, Blue Nile Inc has managed to ensure low operational costs, by ensuring supply of quality products at the lowest prices. Customers purchasing at Tiffany and, until recently, at Zales have been limited to the inventory available at the store. The sales are done through online for the Blue Nile, and also that the customers that follow the traditional way of experiencing the jewels by checking it and wearing is it cannot be achieved. Personally going to Mumbai, Belgium, and U.
In the case of Tiffany and Zales, some economies of scale can still be realized on inbound transportation at all downstream stages of the supply chain until the merchandise hits retail stores, and the customer takes care of the last mile of outbound transportation costs. Ironically they often also reduce the ability of the business. It is possible to say that lack of strategic plans and goals in this sphere supported by fragmented markets are not attractive factors for stock purchase Pittengrew et al 2006. Bargaining power of buyers has a great impact on Blue Nile because there are a limited number of buyers who can afford its products. Therefore to select the best alternative, there are many factors that is needed to be kept in mind.
ORGANIZED TO CAPTURE VALUE: resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. The great performance and appreciable incomes can be attributed to support that they get from the suppliers throughout the years. Weaknesses -Companies do not depend solely on a small number of buyers -Consumer demand has grown at about 5% every year since 1980 Substitute product: weak There is no threat of substitute products to diamonds, but if we look at business model as a product then there is intense competition because everyone is offering similar shopping experiences. That means 70-80% of all people are asymptomatic after contracting this disease Centers for Disease Control Website, 2015. The companies that are competing in this industry are Blue Nile, Zales, Tiffany 's, Online Jewelry Stores Diamonds. Strategic group map of Blue Nile Anticipated response profile Diamonds.
Value-based strategy should not be confused with generic strategy. We see them everyday and fail to perceive them as mutations. The bargaining power for the purchaser with Blue Nile is medium due to the fact that clients have the ability to see the price of their preferred purchase and look around to discover a better cost or deal. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. It is better to start the introduction from any historical or social context. In the summer of 2015, Blue Nile opened their first showroom at Roosevelt Field Mall on Long Island, New York.
Blue Nile Inc.: World's Largest Online Diamond Retailer
They current strategy rests on the having a wide selection of jewelry than any other jewelers while giving the clients extensive education on the same. Another suggestion is the offering of education virtual school for international students which is a service as well as business which have a huge scope and should be taken into consideration. STEP 10: Evaluation Of Alternatives For Blue Nile Case Study Case Solution: If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Blue Nile should include more customized options as provide complementary products, setting gifts, gifts wraps for expensive products, and delivery by providing gift wraps can increase customer satisfaction as well as quality service. Therefore, it is necessary to block the new entrants in the industry. The Rivalry among the competing sellers is strong because there are many competitors and they are basically offering the same product.
In addition, alternatives should be related to the problem statements and issues described in the case study. Overall, Blue Nile can serve as many as 40 countries and operate in over 20 different currencies. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. Analysis This Company" Case Study in a Bibliography: APA StyleBlue Nile Inc. Men are mostly the target for purchases of engagement rings. Blue Nile has a distinct advantage in this regard with its very low fixed-cost structure compared to Tiffany and Zales. PESTLE Analysis Political Factors Since Blue Nile operates globally and serves customers from about 40 different countries, it is exposed to several political factors that could affect its performance.
For online businesses such as the YAHWING system to maintain the success chart, it is the duty to fulfill all legal issues for the area in which they operate. Therefore the international trading is almost a major concern. STEP 7: VRIO Analysis of Blue Nile Case Study: Vrio analysis for Blue Nile Case Study case study identified the four main attributes which helps the organization to gain a competitive advantages. When Costco is the primary obligor, is subject to… blue nile Rivalry among Competing Sellers. Providing two undesirable alternatives to make the other one attractive is not acceptable.