1. How strong are the competitive forces confronting Blue Nile and other online retail Jewelers? Do five-forces analysis to support your answer. There are 27,000 jewelry stores in the United States making this industry fiercely competitive. The rival competitors have high fix costs and this is due to the fact the jewelry is expensive because of its luxury. The competitiveness stemmed from highly fragmented sales amongst local and other retail stores and the fact that there are many avenues in
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Financial Position(with respect to sales): | Blue Nile | Zale | Tiffany | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | Cost of sales79.6 | 78.3 | 50.96 | 52.9 | 42.2 | 43.5 | OperatingIncome5.4 | 6.4 | 0.33 | -11.74 | 13.85 | 16.28 | Inventory6.4 | 6.43 | 37.3 | 41.59 | 56.2 | 52.6 | Property Equip.2.55 | 2.42 | 13.93 | 13.38 | 26.01 | 25.2 | Below table shows the attributes of the products offered by the three companies. Blue Nile | Zale | Tiffany | * Highly customized * Tries
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later became Blue Nile. By 2009 Blue Nile has become one of the largest online retailers of diamonds. Selling diamonds is not all that Blue Nile offers, amongst their diamond jewelry there are plenty of other gold, platinum, silver and pearl pieces for purchase. In addition to selling diamonds, it also offers platinum, gold, pearl, and sterling silver jewelry. Blue Nile is a publicly traded company that operates in 25 different counties. It is headquartered in Seattle, Washington. Blue Nile offers its
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Blue Nile Case Group D Monday and Wednesday 11:00-12:15 Anthony Allen, Laura Blakeman, Daniel DeMaiolo, Carla Hill, and Mason Shattuck 1 Industry Analysis: Dominant Economic Features Definition of Jewelry Retailing Industry & Nonstore Retailer Subsector According to the United States Census Bureau, the Jewelry Retailing Industry (NAICS code 448310) “comprises establishments primarily engaged in retailing one or more of the following items: (1) new jewelry (except costume jewelry);
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How strong are the competitive forces confronting Blue Nile and other online retail jewelers? Which one of the five competitive forces is the strongest? Do a five-forces analysis to support your answer. Blue Nile, Inc has been keeping at the lead of the pack even through the harder economic times, even though it has slipped a little since the products are more of a luxury item rather than a necessity. With competition gaining on Blue Nile they need to review practices and procedures and not get
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Introduction Blue Nile is the largest online retailer of diamonds in the United States. The company offers more than 60,000 diamonds on its website. The national average for an engagement ring is $3,200 but Blue Nile exceeds this number by having a $5,600 average price1. With no physical stores, no intermediaries and offering products four times cheaper than rivals, Blue Nile has proven to be a successful online retailer. Blue Nile is directly competing with both online diamonds merchants and physical
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Arden Brazzeal Case Study #4: Blue Nile Corporate Strategy 1. Prepare a five-forces model of competition in the online retail jewelry industry. Conclude as to the strength or weakness of each force as well as the attractiveness of the industry overall. Rivalry Among Competing Sellers- There are many competitors in the online retail jewelry industry with overlapping characteristics in their business models. A very similar competitor that Blue Nile faces is Diamonds.com. Diamonds.com has
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183 full time employees, 5 part-time employees, and 1 independent contractor. | 2. BRIEF SUMMARY OF CASE SITUATION Business or Industry DescriptionBlue Nile had grown to become the world’s largest online retailer of certified diamonds and fine jewelry. | Blue Nile’s Current SituationBlue Nile reported $302 million in 2009. In 2010 Blue Nile management was concerned about the lingering effects of poor economic condition in the United States on the diamond jewelry industry and how it should pursue
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strategy……………………………………………………………….. page 60 EVA……………………………………………………………………………… page 62 Blue Nile balance sheet…………………………………………………………… page 63 References…………………………………………………………………………. Page 64 Executive Summary Blue Nile is a publicly traded company. The company was established in 1999 and is headquartered in Seattle, WA and is one of leading online retailers of diamonds and fine jewelry. In addition to serving the U.S. market, Blue Nile offers products to selected countries through its Canadian and UK websites
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confronting Blue Nile and other online retail jewelers? Which one of the fi ve competitive forces is the strongest? Do a fi ve-forces analysis to support your answer. 2. What key factors will determine a company’s success in the online jewelry business in the next 3-5 years? 3. What is Blue Nile’s strategy? Which of the fi ve generic competitive strategies discussed in Chapter 5 most closely fi t the competitive approach that Blue Nile is taking? What type of competitive advantage is Blue Nile trying
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