Blue Nile

Satisfactory Essays
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

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