Blue Nile

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BLUE NILE RESEARCH & APPLICATION 5-20 Total points = 58/60 1. What is Blue Nile’s strategy in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence from the 10-K supports your conclusion? After reading through the 10-K statement for Blue Nile, it is apparent that they believe in a mix of customer intimacy, operational excellence and product leadership customer value proposition. Evidence in the marketing statement found on pg. 9 supports this. See Marketing Statement below. They express their desire to provide customers with a non-intimidating environment, that they seek high quality from a trusted source…show more content…
Now, you can purchase just about everything via the internet. From diamonds to fresh food to lunches prepared in Michigan and delivered just about anywhere in the world. Another risk inherent to e-commerce companies is a breach of security. Even government sites have been hacked into. After reading that Blue Nile has all of their communications and systems in one leased facility gave me pause. It seems like a huge mistake to house everything in one spot. When I choose a hosting company for web sites that I build, I make sure the hosting companies have secured back-up systems and mirror systems in place to avoid interruption in service. Increased competition is probably more of a threat today than in 2005. Other e-commerce companies have come on strong in recent years. E-Bay is a giant, but fine jewelry is also available via the internet from just about every store including the primary competitors; (Tiffany on the high end and K-Mart on the lower end). There are other lower price sites popping up. E-Bids is one that advertises aggressively and uses the auction method for lower priced, high end jewelry. Another risk specific to Blue Nile is the “Build Your Own™” feature. This may have been a big draw to Blue Nile in 2005 where they were one of the few, if not the only, companies that offered this feature. Now, the ability to design or build your own product is readily

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