Essay on Blue Nile case stydu

714 Words Nov 22nd, 2013 3 Pages
SCM44 Case Study
Cheng Gong
1. What are some key success factors in diamond retailing? How do Blue Nile, Zales, and Tiffany compare on those dimensions?
Blue Nile has an obvious advantage in product variety and product availability since customers can “build their own ring” by choosing from an inventory of about 75,000 stones online.
The Tiffany brand is very strong and well established. It is associated with glamour, luxurious, trust, and customer service. So Tiffany can get higher margins than its competitors.
Nile’s supply chain structure has major advantage in facility costs. Because items sold through the Blue Nile Web site are customized. So company can keep inventory longer and reducing safety inventory.
Blue Nile has higher
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Considering the strategic importance of brand image, the breadth of the inventory, promotes small facilities, and lower cost, it is meaningful for tiffany positioning high-end products in storage and move the D items to the online channel. This allows it to utilize the limited facilities space emphasizes the high-end projects and customer service, and provide the low end of the online project.

3. Given that Tiffany stores have thrived with their focus on selling high-end jewelry, what do you think of the failure of Zales with its upscale strategy in 2006?
To cope with fierce competition environment, Zales’ strategy about sales channels make the customers think it is a inexpensive brand

4. What do you think of Tiffany’s decision to open smaller retail outlets, focusing on high-end products, to reach smaller affluent areas in the United States?
Opening the smaller retail outlet will help Tiffany to touch its customers in these areas. And customers are also easier to experience the Tiffany’s products and services. However, opening these stores will require Tiffany’s to up the inventory level and safety stock.

5. Which of the three companies do you think was best structured to deal with the downturn in 2009?
Blue Nile has an obvious advantage in this regard with its very low fixed-cost structure compared to Tiffany and Zales. Property and equipment to net sales ratios are 2.38, 13.93, and 25.46 percent for Blue Nile, Zales, and Tiffany. Blue Nile also has a very

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