Blue Nile
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 it in house, so blue nile can meet this need
Technology-
o website advanced searches make it faster and easier to use; very wide variety of customization options; licensed 3rd party IT companies for financial reporting, inventory mgt, order fulfilling, and merchandising; used redundant internet carriers to reduce downtown and service interruptions
Demographic-
o targeted towards moderately towards men in mid 20’s-30’s (these men are up to date on technology and maybe
less traditional)
RBV Analysis
Primary Activities
A. Inbound logistics
Receive diamonds from suppliers within 1 business day of customer order being received
B. Operations
Inspection/work by bench jewelers
Low operating costs --> low prices
C. Service
GIA and AGSL certifications and reports
GCAL appraisal
Automatic provision of an appraisal to aid in insurance matters (value-added)
30 day return policy on anything in original condition without custom engraving
Extensive educational material on website
Extensively trained customer service reps customers could call
Facilitates comparison shopping to their own products and competitors products
D. Outbound Logistics
Free shipping in the U.S. via FedEx or USPS
$15 charge for overnight priority shipping for orders under $1000, normal overnight shipping for orders over $1000
Two day shipping for $250-$1000
Final inspection before
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 it in house, so blue nile can meet this need
Technology-
o website advanced searches make it faster and easier to use; very wide variety of customization options; licensed 3rd party IT companies for financial reporting, inventory mgt, order fulfilling, and merchandising; used redundant internet carriers to reduce downtown and service interruptions
Demographic-
o targeted towards moderately towards men in mid 20’s-30’s (these men are up to date on technology and maybe
less traditional)
RBV Analysis
Primary Activities
A. Inbound logistics
Receive diamonds from suppliers within 1 business day of customer order being received
B. Operations
Inspection/work by bench jewelers
Low operating costs --> low prices
C. Service
GIA and AGSL certifications and reports
GCAL appraisal
Automatic provision of an appraisal to aid in insurance matters (value-added)
30 day return policy on anything in original condition without custom engraving
Extensive educational material on website
Extensively trained customer service reps customers could call
Facilitates comparison shopping to their own products and competitors products
D. Outbound Logistics
Free shipping in the U.S. via FedEx or USPS
$15 charge for overnight priority shipping for orders under $1000, normal overnight shipping for orders over $1000
Two day shipping for $250-$1000
Final inspection before