Blue Nile case study Essay

How tight are the agonistic forces confronting luscious Nile and another(prenominal) online sell jewelers? Do a five-force analysis to support your execute. The rival among the competing sellers in the manufacturing is strong. Competitors for gloomful Nile not only include the online jewelry sellers such as Diamonds.com, Whiteflash.com, Ice.com and JamesAllen.com, but similarly include brick-and-mortar jewelers, compass department stores, mass merchants, local anaesthetic jewelry shop, and large jewelry chains such as Zale and Tiffany. The competitory force from new entrants is moderate to weak.The new entrants of the traditional jewelry exertion will need a large tot up of capital for inventory, conventional tell ons to attract customers, and a strong sales team. For new online jewelry sellers, they also need to find ways to build their brand awareness, establish federation with suppliers, and to keep the procedure costs low to ensure attractive prices. The compe tition from substitute products for jewelry sellers is also moderate to weak. There are man-made diamonds, manmade jewels and alternative jewels. But for naming rings and wedding bands, people would button up choose those real and precious diamonds and materials. Thus, from this aspect, there could not be substitutes for diamonds and pricy jewels. The bargaining power from the buyers is strong since there are galore(postnominal) choices for them to obtain jewelry from. It is easy for customers to change their source for purchase.The bargaining power from the suppliers is strong for the prices for diamond and precious metals depend more than on the exchange commercialize place in the world. There are limited suppliers creating an established oligopoly over the years. 2. What diagnose factors will determine a companys succeeder in the online jewelry stage wrinkle in the next 3-5 years? Key success factors in the online jewelry business include the following ones 1) Lower operation costs to keep prices lower than rivals2) Partnership with suppliers to reduce inventory3) constitute customers trust and loyalty4) Strong e-commerce capabilities5) Manufacture customized products3. What is saturnine Niles dodging? Which of the five generic agonistic strategies discussed in Chapter 5 most virtually fit the hawkish approach that Blue Nile is taking? What type of private-enterprise(a) value is Blue Nile trying to contact? Blue Niles scheme is to be the Best Cost Provider. It provides the customer utmost quality engagement rings, wedding bands and jewelry with low prices to value seeking customers.Blue Nile tries to achieve low costs of its operation and marketing thus maintain its warring advantage in prices. 4. What do you like and dislike more or less Blue Niles business get? Blue Niles business model is to make profits through its online sale of high-quality jewelry at competitive low prices with trusted guidance throughout the purchasing pro cess. The model I like is that it provides value to its suppliers and customers which in return bring close to their profits. The inclination of an orbit costs and supply chain efficiency enable them to achieve this goal. other aspect of the model I like is that they provide a high level of customer service and was continually engaged in refinement the customer service aspects in every step of the purchase order.The business model places great importance on customers satisfaction which would help their business to grow. The model I dont like is that they dont have their own brand of jewelry established and they depend overly much on the jewelry of their suppliers. Quality of their jewelry as salutary as the brand effects could not be competitive with other well-known brands. 5. What does a SWOT analysis of Blue Nile reveal about the overall attractiveness of its situation? Strengths 1). Offer high-quality jewelry at competitive prices 2). Provide great customer services3). Ef ficient supply chain management4). Good monetary condition with a positive amount of cash flows Weakness 1). Brand name not widely accepted as Zale and Tiffany 2). only sell online3). Restricted to US, UK and Canada.Opportunities 1). Growing jewelry market in US2).Many recognitions in the online jewelry industry Threats 1). Competitors from online and offline jewelry retailers 2). seasonal worker sale of jewelry6. What is your appraisal of Blue Niles financial death penalty based on the data in case establish 4? How well is the company doing financially? Is thereevidence that Blue Niles strategy is workingwhat is the story of the numbers in case Exhibit 4? Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing the calculations needed to arrive at an analysis-based answer to your assessment of Blue Niles recent financial performance.Blue Nile has able competitive strength to compete with its online rivals. It has already created brand awareness and brand loyalty among most of its customers. It also has a large number of jewelry selections thanks to its extensive partnership with jewelry suppliers. The efficient supply management also ensures the low prices of their products. It has built a sustainable competitive advantage in the online retail jewelry business. For offline competitors, Blue Nile should work on pose more marketing efforts to make more people know about their brand and build its brand into a reliable high-quality image. 8. What strategic issues and problems does Blue Nile management need to speak to? Issues and problems Blue Nile Management need to address1). Lack of marketing and advertising makes Blue Nile still unknown to many potential customers. Blue Nile should explore more advertising channels to elevate its brand image. 2). International efforts to reach the global market are slow. They currently only reach out to UK and Canada. Blue Nile should try to tap more potential global market and explore new markets. 9. What recommendations would you make to Blue Nile management to strengthen its competitive position and future strategic and financial performance? Blue Nile management should keep on providing customers jewelry at low costs while maintain its high quality of jewelry and customer services. Reducing the costs would help ensure the low prices and continuous efforts on educating the customers and assuring their purchase decisions would help Blue Nile to strengthen its competitive position.