Blue Nile Case Essay

background signalBlue Nile has grown into virtuoso of the largest jewelry retailers in the get together States with further using the Internet as its distribution channel. The success is a mail result of a well-crafted business scheme that extracts high price customers and provides them with in-depth command about baseb only diamonds and jewelry. Gamble, Peteraf, Strickland III, and Thompson (2012), indicated that the lodges strategy provides customers with high quality diamonds, extraordinary customer service and busted prices (p. c-128). They pride themselves on their selection and nifty education that they provide to consumers looking for the perfect diamond. In addition they fox received various awards and recognition from Forbes and Bizrate.com (Thompson, Peteraf, Gamble, & Strickland, 2012, p. C-127). Blue Nile has found a ceding back in which to differentiate itself by creating an online marketplace for jewelry shopping and with low operating costs which makes th em extremely competitive. In viewing Blue Niles website, one can see that they have a vast amount of for potential buyers, that which determine a diamonds value- carat, lucidity, color, cut, and cut grade.StrengthThe company has a user friendly site that present a locoweed of diamonds styles to choose from with the 5Cs of diamond selection which are cut shape, cut, color, clarity and carat weight. Their price is much lower than others. Blue Niles also prides themselves on their selection and outstanding education that they provide to consumers looking for the perfect diamond (Thompson, Peteraf, Gamble, & Strickland, 2012, p. C-127).WeaknessBlue Nile get bys in a small area with a specialty offering. Brand awareness remains a constant solution of weakness for the company. Blue Nile, Inc. needs to increase their advertising campaign to attract new and retain old customers.OpportunitiesBlue Nile needs to ca-ca a strong brand awareness that will allow can compete with Tiffany and Co. Blue Nile, Inc. recently opened warehouses in Canada and Britain, but has limited globalization to gross revenue of 40 nations. Blue Nile will need global outgrowth into the European market could prove to be a financial success.Threats finished the operating capital calculations it indicates that Blue Niles strategy is needs some adjustments in the current market space. From 2005 to 2009 the cash that has been available for the firms everyday operations has dropped dramatically. There was an estimated $58.8 billion in sales in the United States alone in 2009 (Thompson, 2012, p. C-127). With Blue Nile taking $302 zillion in sales in 2009, they had a great year but in naturalism only maintain a less than 1% of the market intentness hold. This suggests that there is room for growth in this are. With steady profits for the yesteryear two years, 2011 has been the best year even though the 4th hindquarters resulted in small loss. The company profits are 2011 $348 million, 2010 $332.9 million, 2009 $302.1 million, and in 2008 $295.3 million be (Blue Nile, 2012, Investor Relations).ReferencesBlue Nile, Inc. 2011 Annual Report (2012). Blue Nile, Inc. (online). Retrieved from http//files.shareholder.com/downloads/NILE/1855688484x0x560442/D1DAE1BA-0161-4574-8447-242F9561DF0E/2011_Annual_Report_FINAL.pdfThompson, A. A., Peteraf, M. A., Gamble, J. E., & Strickland, A. J. (2012). Crafting & executing strategy The quest for competitive advantage (18th ed.). New York, NY The McGraw-Hill Companies, Inc.Discussion 6.1 Jeffrey ClapperJeffrey,I agree with your posting and I enjoyed reading it also. In reviewing the financials and the Internet site, it is unmingled that Blue Nile spends a lot of money in the area that has no direct impact on generating profit. Blue Nile is now pursuing a new market consisting of non-engagement jewelry by offering an grow range of products across several price points. This market should offer a great amount of growth opportunities for now and the future. All in all the brand and name recognition is the key aspect that the must relent attention to.Discussion 6.1 Michael VeltmanMichael,Your post was very insightful. A main emersion for Blue Nile is the lack of scene through the their advertising. Blue Nile offers the best prices spell still being able to create a profit. The low operations cost of the business enables them to offer low prices and still make a profit. On the other hand the lack of store front exposure creates a problem for gaining additional clients. By adding new products they can create there reach and drive more revenue.