A REPORT ON
Blue Nile is the largest online retailer of certified diamond jewelry. It was established in 1999 and has head-quarter in Seattle, WA. Apart from catering to U.S. market it also serves to international market through its websites in England and Canada. A big share of its revenue comes from the sales of wedding bands and engagement rings. Blue Nile is known as a high end jewelry retailer. Blue Nile has a unique business model. Blue Nile doesn’t hold any inventory but places orders to diamond suppliers only after receiving orders from customers. This has enabled Blue Nile to offer cheap products to its customers. It also provides all the valuable information about the diamonds on its website. After reading all the information about Blue Nile, I have come up with a strategy that will enable the company to increase its market share and also the revenue.
Blue Nile has been very successful since it was established and has also received numerous awards. Some of these awards are highly recognizable in the jewelry industry. But because of cut throat competition in the market, Blue Nile has to improve continuously to take full advantage of the opportunities in the market. Company has been able to satisfy its customers over the years but the lack of brand recognition in International market of diamonds has restricted Blue Nile to perform as per its potential.
By increasing the visibility of brand, Blue Nile can increase both its market share and its revenues. To increase the visibility, Blue Nile can advertise in posters, magazines, online media, social media, and in billboards. Blue Nile can also expand its business to Asian countries. To market its product in Asian countries, Blue Nile should also think about introducing its website in multiple languages. This will help the company to maximize its exposure in various countries. Diversification of products will also be a good option for Blue Nile to increase its sales. Designer bags, wallets, gold plated watches with embedded diamonds in dials and clothes with gold or silver embroidery etc. will be good options that Blue Nile can offer to its customers. All these activities will increase the brand awareness and will also increase value to stakeholders.
Internal Competencies of Blue Nile
2.1 SWOT Analysis
3.1 PEST Analysis
3.1.3 Socio- cultural
3.2 Industry Analysis
3.2.1 Supplier’s bargaining power
3.2.2 Bargaining power of buyers
3.2.3 Threats of new entrants
3.2.4 Threat of substitute products
3.2.5 Competitive rivalry
4.1 Strategy 1: Mergers and acquisitions
4.2 Strategy 2: Increasing the pool of suppliers and increasing brand recognition
8.2 Appendix 2
1. Company Profile
Blue Nile is a company which trades diamond jewelry online. The company was established in 1999. During the early stages of its operations, it was a huge challenge for Blue Nile to attract the customers because customers cannot touch and try the jewelry prior to purchase. But blue has been extremely successful in the previous years and its sales are continuously increasing year by year. Company’s revenues have increased by 2.5% from 2008-2009. Forbes has also declared that Blue Nile is its favorite online jeweler (Thompson, Peteraf, Gamble, & Strickland, 2012). 2. Internal Competencies of Blue Nile
2.1 SWOT Analysis
220.127.116.11 Low price:
Blue Nile sells its products online and therefore, saves the...
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