Blue Nile Case

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Blue Niles Case
Week 6

Background
Blue Nile has grown into one of the largest jewelry retailers in the United States with only using the Internet as its distribution channel. The success is a direct result of a well-crafted business strategy that attracts high price customers and provides them with in-depth education about diamonds and jewelry. Gamble, Peteraf, Strickland III, and Thompson (2012), indicated that the company’s strategy provides customers with high quality diamonds, exceptional customer service and low prices (p. c-128). They pride themselves on their selection and outstanding education that they provide to consumers looking for the perfect diamond. In addition they have received various awards and recognition from Forbes and Bizrate.com (Thompson, Peteraf, Gamble, & Strickland, 2012, p. C-127). Blue Nile has found a niche in which to differentiate itself by creating an online marketplace for jewelry shopping and with low operating costs which makes them extremely competitive. In viewing Blue Niles website, one can see that they have a vast amount of for potential buyers, that which determine a diamond’s value- carat, clarity, color, cut, and cut grade.

Strength
The company has a user friendly site that present a lot of diamonds styles to choose from with the 5C’s of diamond selection which are cut shape, cut, color, clarity and carat weight. Their price is much lower than others. Blue Niles also prides themselves on their selection and outstanding education that they provide to consumers looking for the perfect diamond (Thompson, Peteraf, Gamble, & Strickland, 2012, p. C-127). 

Weakness
Blue Nile competes in a small area with a specialty offering.   Brand awareness remains a constant source of weakness for the company.  Blue Nile, Inc. needs to increase their advertising campaign to attract new and retain old customers.

Opportunities
Blue Nile needs to create a strong brand awareness that will allow can compete with Tiffany and...
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