1. How strong are the competitive forces confronting Blue Nile and other online retail jewelers? Do a five-forces analysis to support your answer. If you were to forecast the future‚ what would this analysis look like in 10 years? Potential entrants: Major online retailers‚ major jewelers‚ Village Silversmith Current Competitors: Ice.com‚ Gemvara‚ Diamond.com‚ Jamesallen.com‚ Astley Clarke Substitutes: Smaller/local Jewelry stores Buyers: Couples to be engaged Suppliers: Diamond mines‚ precious
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Question 1. What are some key factors in diamond retailing? How do Blue Nile‚ Zales‚ and Tiffany compare on those dimensions? All the companies involved in the diamond market want to have a big share of that market. And‚ the bigger the share‚ the company makes bigger revenue. It is very interesting that all three companies (even though they are in the same ‘business’) have different approaches in ‘taking market share’. An important fact is that the companies have a different clientele. The
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Blue Nile Inc. Strategy 2011 Blue Nile Inc. Strategy 2011 Introduction In 2009‚ the U.S. jewelry and watch market was 42% of the worldwide market‚ which was estimated to be as much as $140 billion. Industry revenues had grown 5.5% annually for the 20 years prior to the recession in 2008. Despite the recession and intense competition in this highly fragmented market‚ Blue Nile Inc. (NILE) capitalized on the industry growth rates and grew to become the world’s largest online
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The spreadsheet I did presents a summary of Blue Nile financial results from 2005 to 2009. From 2005 to 2007 revenues and net income both increased. The deep recession which began in late 2007 seriously affected the revenue in 2008. And then in 2009 the revenue recovered and increased slightly. I am going to analysis the financial performance in three parts. First‚ profitability ratios. Blue Nile had steady return on asset ratios around .1. The company utilized its assets very efficiently and
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Blue Nile Case Questions 1. How strong are the competitive forces confronting Blue Nile and other online retail jewelers? Which one of the five competitive forces is the strongest? Do a five-forces analysis to support your answer. The competitive forces that are confronting Bule Nile and other online retail jewelers are strong. The threat of new entrants is high because the brick-and-mortar stores have a low cost of entry into the online retail of their jewelry. The threat of substitutes is
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Blue Nile 5 Forces Moderate threat of new entrants Low bargaining power of suppliers High bargaining power of consumers Low threat of substitute products Intense rivalry-competes with not only online retailers‚ but also stores PEST D Political/legal- Economic- Sociocultural o better perception of online shopping‚ easy‚ non-intimidating shopping for men‚ people want things really quickly and jewelry stores take forever bc they don’t do
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Blue Nile Case Study 1. How strong are the competitive forces confronting Blue Nile and other online retail jewelers? Do a five-force analysis to support your answer. The competition among the competing sellers in the industry is strong. Competitors for Blue Nile not only include the online jewelry sellers such as Diamonds.com‚ Whiteflash.com‚ Ice.com and JamesAllen.com‚ but also include brick-and-mortar jewelers‚ chain department stores‚ mass merchants‚ local jewelry shop‚ and large jewelry
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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
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Case Study - Blue Nile‚ Inc. Zequn Fan (Ford) Executive Summary Google is a well-known technology giant in the IT industry. Motorola is a well-known manufacturer of mobile devices. Blue Nile‚ Inc. is the largest online jewelry‚ mainly diamond‚ retailer around the world. Their business model is pioneer in the industry. However‚ Blue Nile found itself stuck in the middle‚ because of Tiffany’s and DeBeers’ occupation of high end market and Amazon’s and Overstock.com’s occupation of low end. In order
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FORCES MODEL - EXTERNAL ENVIRONMENT 2 WORKSHEET 3 – DRIVING FORCES OF CHANGE - EXTERNAL ENVIRONMENT 3 WORKSHEET 6a – COMPETITIVE ANALYSIS PROFILE - EXTERNAL ENVIRONMENT 6 WORKSHEET 8 – GENERIC COMPETITIVE STRATEGIES 8 WORKSHEET 10 – KEY FINANCIAL RATIOS - INTERNAL ANALYSIS 9 WORKSHEET 11 – INTERNAL ANALYSIS PROFILE - INTERNAL ENVIRONMENT 12 WORKSHEET 12 – SWOT ANALYSIS - INTERNAL ENVIRONMENT 13 WORKSHEET 2a – PORTER’S 5 FORCES MODEL - EXTERNAL ENVIRONMENT
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