Essay on Blue Nile Case

Decent Essays
2) What key factors will determine a company’s success in the online jewelry business in the next 3-5 years?
For a company to be successful in the online jewelry business, they need to be reliable, have an excellent reputation, be trustworthy, have product selection, superior quality, along with support for its customers and products. A website that is easy to navigate, user friendly, web features that only that company provides and how quickly they can get the product to the consumer. Why Blue Nile diamonds is so successful is that is understands its customers. Blue Nile recognizes the diverse needs of its customers and strives to address these different jewelry needs by offering a wide variety of choices. Having a user friendly
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It seems that Blue Nile fits the majority of the five generic strategies. Where Blue Nile fits the best would be the best cost provider, since they don’t normally provide the lowest price but offer the best quality for the best price. Blue Nile takes great pride in the quality of diamonds and jewelry they sell, they try to retain old customers and obtain new one by having customer loyalty by creating a wonderful shopping environment and experience, while providing the best price for the best product. Blue Nile’s competitive advantage is their customer loyalty.
5) What does a SWOT analysis of Blue Nile reveal about the overall attractiveness of its situation?
Strengths – Low Inventory, competitive prices, brand name/recognition,
Weaknesses – no face-to-face customer contact, buying based upon a picture, cannot put on a product, shipping risk
Opportunities- International expansion, larger product offering, promote their brand recognition
Threats – Online competitors, brick and mortar retailers
Blue Nile threats are the possibility of dealing with a declining economy such as in recent times along with the addition of jewelry stores into communities. With so many people out of work due to the
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