Blue Nile Case Analysis
This paper is based on Blue Nile, a leading online jewelry retailer’s performance in inventory management, supply chain corporation, customer service and support. By analyzing the main competitive forces, weakness was pointed out. There is a detailed problem statement discussing the weakness and reasons are listed. The analysis of Blue Nile’s competitive forces is also a strong evidence of their negligence in a field of market. The term of generic strategy is used in the analysis of competitive forces for better understand of Blue Nile’s strategy in cost management. Based on the problem stated and company’s size and capability, feasible recommendations are listed in order to solve the problem.
Normally a customer shop on Blue Nile website will follow the following steps: Choose your diamond including shape and 5C, decide the kind of jewelry you want to customize with the chosen diamond, choose the pendant, and then complete the order. Although the company said they offered 60,000 diamonds and hundreds of settings, the final jewelries they offered are different combinations of basic normal designs. Blue Nile is competitive in gaining customers who only acquire a piece of simple design jewelry, but cannot attract customers who are looking for unique design jewelry. In other words, Blue Nile cannot make an influence on other famous jewelry makers such as Cartier, Graff or Tiffany & co in fine jewelry market. Creation is hard to be found in Blue Nile jewelry design.
Summary of Facts
All the strategies are built in order to save costs and make product price low. Blue Nile is a company aimed in offering people who are looking for satisfied jewelry, so the company shouldn’t limit customers in people who are looking for a nice deal in purchase. The fact is Blue Nile did mature work in building customer group in buying simple designed jewelry, so it is time to expand the business in high-end jewelry market and build a new group of