Blue Nile Case Analysis

1392 Words Jul 24th, 2012 6 Pages
Introduction
The brilliance of diamonds and its rarity make the gem highly desirable. Although diamonds serve no significant usefulness to an ordinary person, in a lot of cultures, diamonds are not only fashion accessories but it also symbolizes a person’s standing in society and financial noteworthy. Diamonds are not manufactured, they are gift of nature and mining diamonds in the depths of the Earth’s mantle requires a complex and expensive process. The famous slogan, “Diamonds are forever” solidifies the degree of commitment required in the union of marriage. To be given a diamond for an engagement ring is the ultimate symbol of love.
According to the World Diamond Council, approximately US$13 billion worth of diamonds are produced
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Once a loyal customer is in the purchasing process again, this provides an ample opportunity to offer customers to buy another related item at a reduced price.
The second alternative: offering discount coupons through online discount sites would provide more visibility for the company and more likely would increase customer traffic. Online discount sites are becoming popular for customers looking for bargain items. During a recession customers are highly mindful on their spending. This alternative would be a good way to reach to these potential customers.
As shown in Figure 2, the cost associated with placing an ad discount sites is a weakness, however, less expensive in comparison with traditional ad production such as video or billboards.
The third alternative is for the company to reinvent product offering would entail offering less expensive jewelry items to cater to customer’s unwillingness to spend on luxury goods or limited purchasing ability. This would bring in new type of customers, however, may also potentially cause the company to lose existing customers. Blue Nile has a reputation of being the premier online jeweler offering high quality products. Reinventing their product offering may cause to lose existing customers because the company may not have the kind of jewelries (products) that fit the taste of former or existing customers.
The fourth alternative, which combines alternatives one and two with focus

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