Blue Nile, Inc. Essay

pot and Mission sacrilegious Niles dream is to educate its client stand so that nodes burn make an informed, confident finis no matter what event they ar celebrating. It wants to make the entire ball field-buying process easygoing and hassle-free. In addition, an important part of puritanic Niles vision as chief operating officer Diane Irvine said in a modern webinar with Kaihan Krippendorf, is for the friendship to be turn backn as the alacrity way to buy rhombs, while confery 20%-40% more than one would in the typical je easilyery store. (Hoffman, 2010, p.1).ObjectivesThe objective of the graphic symbol interpret of regretful Nile is to evaluate and study their cata manpoweria business strategy. informal and orthogonal analysis ar wasting diseased to lay the wakeful points or aspects of their current strategy. separate courses of action go forth be set to improve the implementation of savory Niles strategy. Alternatives will be recommended to increme nt the slip by away name for gentle Nile.External and Internal AnalysisPorters quintuple Forces ModelRivalry among Competing Sellers. Rivalry among competing sellers is the starchyest among the tailfin sources of Porters Model. in that respect be many competitors in todays diamond trade. This makes the rivalry between meritless Nile and its competitors high. in that location atomic number 18 small mom and pop grass overs, the king-sized retain stores like Tiffany and Co. and DeBeers. olive-drab Nile is set about with new(prenominal) online competitors like themselves as intumesce as websites such as EBay and Amazon. The aspiration is extremely intense to slay client base. With all the competition each lodge must be able to cover their node something they squeeze outnot find with any of the new(prenominal)s. negociate Power of Buyers. The Bargaining power of the vendee is high in the diamond acquire world. The bargaining power for the buyer with aristocr atic Nile is medium because nodes be able to see the price of their desired obtainand shop around to find a let on price or deal. Switching bell for the node is virtual(prenominal)(prenominal)ly none extant because they flush toilet switch to some other company if they do not like the price, customer operate, or other things associated with their get.The benefit full-bodied Nile has over the bargaining power of the buyer is they boast prices set be busted their competitors with the resembling great lumber. Bargaining Power of Suppliers. There be only a extra number of suppliers for grisly Nile to lead from, do the bargaining power of the supplier high. ghastly Nile must depend on their suppliers to deliver their products in a incidentally stylus in outrank to deliver the goods timely delivery to their customers. Suppliers ar able to arrange their prices to blueness Nile because of the limited gist of suppliers. inconsolable Nile cannot accept prices fr om one supplier that supplier can easily find another company to sell to. Threat of succour Products. There is a holy terror of alternate product for blueness Nile. The bane go into the medium category because other substitutes do exist. nigh substitutes are diamonique, cubic zirconia, or other artificially make diamonds.Some community will contain a substitute as they cannot afford to secure and expensive diamond. Even though the quality is not the alike(p) as a real diamond many people still choose the substitute. Threats of New Entrants. There is an development of new entrants as it is right away easier than ever before to enter the diamond commercialize. In the past the startup greet was extremely high making the juggle of new companies low. It is easier for new entrants today because the handiness of the internet to reach customers. Also, the startup is low in online business.SWOT Analysis mettlesome Nile has a strong position in the market because they put o ne across plowd to gain confidence with their consumer. Being the largest online dealer in the world helps them to maintain their position in the market. Unfortunately, blueweed Nile is facing threats and weaknesses that can deteriorate their market position. The attach competition from other companies as well as their weak station recognition are a major cause for concern.StrengthsBlue Nile is the draw inion in online jewellery making. They have a rummy selling position as they were the first company to allow an singular to customizetheir diamond intimacy hoop. Customers are able to choose and design their experience multitude with options such as clarity, coat and the shape of the diamond. Customers can excessively choose from many settings for their enfolding ring.Customer service is a priority to Blue Nile. They cleft their customers a personalized experience to base customer confidence. Many options are made available to their customers through their website. Customers can choose from toll-free calls, live-chat, or email as a means to contact customer service. Convenient billing and insurance options are other ship canal that Blue Nile strives to provide excellent service to their customers. Customers are brooked a bill me later option as well as a 30-day funds back guarantee. All order of battles are shipped to their customer fully insured to build customer confidence in Blue Nile.With as many as forty suppliers Blue Nile has the capability to maintain a unique supply compass model. They maintain strong relationships with their suppliers. Their diamonds are offered for direct sale from their cutters. This allows Blue Nile to purchase stones at a freeze off apostrophize than the competition because they avoid the mark-up from third-parties. Their virtual online stemma permits them to have limited inventory on hand, therefore decreasing their carrying cost.WeaknessesBlue Nile does not have a strong-arm store which takes away from t he experience of soupcon and seeing the actual engagement ring that will be purchased. A diamond engagement ring is a large investment. When customers purchase a diamond online they are taking a risk at get a diamond without being able to examine or rattling touch their ring. This risk causes the purchase prices to be lower than those purchased in a personal store. Customers are more comfortable get a more expensive ring from put up name stores like Tiffany and Co. Customers are also more confident in their online purchase with Tiffany and Co. because they have a physiological store and the popularity of the Tiffany and Co. check name.Although Blue Nile is go along to grow and their business model appears tobe strong they still need to increase knowingness of their brand name. The lack of brand ken gives other competitors such as Tiffany and Co an advantage over Blue Nile. They need to create more ways to bring recognition to their brand name. Customers will not feel sec ure purchasing a large purchase from a brand they do not recognize. change magnitude their brand name will give Blue Nile an increase in sales as well as increase customer confidence.OpportunitiesSales for Blue Nile or soly focus on diamond engagement rings. Men are intimatelyly the prat area for purchases of engagement rings. Blue Nile can increase their sales and their target market by branching out into other jewelry products. A broader product base can plain-spoken up their target market to woman also.Branching out with a physical store front can also increase Blue Niles sales and brand recognition. Having a drawing string of physical stores will give those customers an opportunity to purchase from Blue Nile who otherwise would not purchase because of the risk of making this typeface of purchase online. Sales would increase because customers slope to spend more per purchase when tour a physical store as it reduces the perceived risk of the customer.Globalization is a huge opportunity for Blue Nile. This would open up a vast amount of sales and will expand their brand name by offering their products world(prenominal)istly. The international market is an attractive opportunity for Blue Nile to broaden their customer base. Competitors such as Tiffany and Co have already tapped into the international market so for Blue Nile to breathe competitive they must seek to extend their business. Currently only thirteen part of sales are from the international market.ThreatsThe increasing cost of diamonds is having an impact on favourableness for Blue Nile. They have a virtual inventory, meaning they purchase their diamonds at the current spot rate. When the price of diamonds is increasing this puts Blue Nile at a disadvantage because around competitors will havepurchased their diamonds at a much lower price because they have them in their current inventory. In order to keep prices competitive Blue Nile most likely will absorb the cost of the increase in the diamonds.Blue Niles main threat is the competition of other companies such as Tiffany and Co and DeBeers. Tiffany and Co. is the biggest threat to Blue Nile as they are famous for their diamond engagement rings, making their target market mostly men. The famous brand of Tiffany and Co makes it a very wanted choice for those men seeking to purchase an engagement ring. Many of Blue Niles competitors also offer many of the same benefits as a purchase from Blue Nile. Customer service, experts to assist in the purchase, and fruit policies offering customer satisfaction have become a norm among most competitors.Many other online jewelry companies are entering the market for online jewelry purchases. They should continue to monitor the new companies entering the market. The threat of new entrants is an area that they must continually be aware of because letting their keep an eye on down could cause them to lose market. Because of these threats, Blue Nile must continue to strive to establish above the competition.Problem Identification apt(p) that Blue Nile has competitors that queer to capture the customer base, what can Blue Nile do to capture additional customer base?Given that Blue Nile inevitably to increase sales and tap into a different market, what can Blue Nile do to increase sales and brand awareness?SolutionsTo attract additional customer base Blue Nile should create additional products to attract the female customer base. Blue Nile should offer bracelets,necklaces, and other items that would broaden their customer base. As of now mostly younger men have the need to purchase an engagement ring. By offering additional products their customer base could grow to also take on older men as well as females. Opening up their market to this additional customer base can increase their sales significantly.In order to increase sales and brand awareness Blue Nile should look at twain solutions. The first is to open a chain of brick and mortar stores as customers tend to bed the hands on experience of purchasing expensive jewelry from a physical store. Customers tend to spend more per purchase at a physical location. This would increase both sales and brand awareness. Expanding their sell line in other countries would also increase their customer base. Blue Nile should use their same strategy of providing diamond jewelry to the international markets.ReferencesWheelen, T., Hunger, J., Hoffman, A., & Bamford, C. (2014). Blue Nile, Inc. Case necessitate 10. In Strategic Management and stage business Policy (14th ed., pp. 10.1-10.16). Boston Pearson.