Blue Nile Corporate Strategy
Blue Nile Corporate Strategy

Blue Nile Corporate Strategy

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  • Pages: 6 (2782 words)
  • Published: October 27, 2017
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Introduction “The Blue Nile was incorporated Delaware on March 18, 1999 as RockShop.

com Inc. On May 21, 1999 the company purchased certain assets of Williams & Sons, Inc a Seattle Jeweller including a website established by that business. In June 1999, they changed their name to Internet Diamonds, Inc. In November 1999 the Blue Nile brand was launched and changed to Blue Nile, Inc with corporate head office located in Seattle, Washington USA.

Blue Nile. com (2008) The Blue Nile “business has grown considerably where for the 2007 fiscal year they reported revenue of $319 million (USD), an increase of 23. % compared to 2006 fiscal year result of $251,581 9 (USD) which is 61% increase compared to 2006 result with respectable compound average growth rate (CAGR) of excess of 40%” Reuters. com (2008) At Blue Nile, our philosophy is simple: Offer high-quality diamonds and fine jewellery at outstanding prices. When you visit our Web site, you’ll find extraordinary jewellery, useful guidance, and easy-to-understand jewellery education to help you find the jewellery that’s perfect for your occasion.

Since its founding in 1999, Blue Nile has grown to become the largest online retailer of certified diamonds.We offer thousands of certified diamonds which can be used to create diamond engagement rings, earrings, and pendants. Every loose diamond sold by Blue Nile has been analysed and graded by either the Gemological Institute of America (GIA) or the American Gem Society Laboratories (AGSL) Blue Nile is a publicly traded company (NILE), and has been awarded the Circle of Excellence Platinum Award by Bizrate. com. Forbe

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s magazine has chosen Blue Nile as their favourite online jeweller every year since 2000, and Money Magazine listed our price, service, and education as reasons they rated us a “Best Deal. Kiplinger.

com stated that “the best online jeweller is Blue Nile”, and we were recently profiled in full by The New York Times. The Wall Street Journal describes how our individual diamonds “… are described in even more intricate detail, including depth, table, symmetry, polish, girdle, culet and fluorescence”, and they go on to recognise that Blue Nile “.

.. even explains what all these things mean” BlueNile. com (2008) Competitive Five -Forces Analysis ConclusionBlue Nile has a fantastic historical track record in generating attractive ROI and generating healthy growth and profits which has been largely due to Blue Nile navigating the water’s of competitive pressures from other online retailers and in generating web based new shopper traffic which is proof that they are dealing with competitive forces lurking around their innovative successful business model but at the same time competition will see entrance into the market from traditional Bricks & Mortar retailers such as Tiffany’s & Co and increased online competition from the like’s of Amazon who sell Diamonds online, Diamond. om, Mondera to name a few The biggest danger is major speciality Jewellery name brand players who are already very well respected and have gained the trust from consumers over a number of years such as “Zale Corp & Sterling who have positioned themselves Number 1 & 2 in the US market with combined Sales o

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$4. Billion (USD) per year” Thompson p C-73 (2007) But at the same time the saviour for Blue Nile is that the Online Jewellery market still has extensive room to grow taking market share away from traditional retailers and room for other competitors to enter the market without affecting Blue Nile’s future sales turnover and profit projections.

Plus at the same time Blue Nile is carving out and pioneering new market industry segment that will continue to grow for some years yet. Outlook/Trends “In 2005, online jewellery sales have a 3. 5% market share, and they are projected to reach a 7. % share in 2010. In part, the rise is due to high online sales of expensive diamond engagement rings.

By 2009, online sales of fine jewellery should hit $2. 7 billion, or 6. 6% of the total market” emarketer. com (2006) “But jewellery is just part of a retail online picture which is growing even faster across the board, according to Forrester. Thanks to innovations that will make online shopping simpler and more engaging, online retail sales will nearly double within five years; from $172 billion in 2005 to $329 billion in 2010, according to the report.

That increase includes a 14 percent compound annual growth rate over the next five years” Europstar. com (2007) “ An increase in the number of female shoppers will contribute to 14 percent of jewellery sales moving online by 2010, according to a new forecast from Forrester Research and Nielsen//NetRatings. “As the online buying population matures, there is increased confidence and comfort in purchasing non-commoditized goods online, which has provided retailers with the opportunity to sell a wide variety of product categories and price points. Harris Interactive: (December 20, 2004) Key Success Factors Next 3 – 5 Years •Increasing product range to include lower cost high quality consumer segments including pearl necklaces and friendship rings etc •Offering greater customer trust, security, comfort, creditability online buying experience by providing independent grading reports on all product lines sold by Blue Nile which in turn will create positive market image. •Offer greater customer services such as 24 hour Global delivery E. g.

DHL overnight •Increase product line specialization in tailor making & customising to shopper’s requirements •Develop & Implement public relations & consumer education programmes targeted towards potential US domestic & International buyers on Blue Nile Online product lines and services offered. E. g. Oprah Winfrey Show •Develop and Implement creative marketing campaigns & pricing strategies that will drive greater sales & growth ultimately profitability. E.

g. Sponsorship travel events Source: Blue Nile Annual Report (2006)Blue Nile Strategy The Blue Nile’s Inc strategy is “striving to achieve lower overall costs more than rivals and appealing to a board spectrum of customers , usually by under pricing rivals which is their overall competitive advantage with vast many price-sensitive buyers “ Thompson p 134 – 135 (2007) The main elements of Blue Nile’s strategy are:- •Low operational costs with the company only having “133 full time employee’s and independent contractors and temporary personnel on seasonal basis.Blue Nile use combination of proprietary and licensed third party information technology systems for

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