Blue Nile Case Essay Example for Free

disconsolate Nile Case EssayBackgroundBlue Nile has enceinte into one of the largest jewelry retailers in the join States with only using the Internet as its distribution channel. The victor is a direct result of a well-crafted business strategy that attracts high price customers and suffers them with in-depth education more or less diamonds and jewelry. Gamble, Peteraf, Strickland III, and Thompson (2012), indicated that the companys strategy provides customers with high quality diamonds, exceptional customer service and down(p) prices (p. c-128). They plume themselves on their selection and outstanding education that they provide to consumers looking for the perfect diamond. In addition they mystify received various awards and recognition from Forbes and Bizrate.com (Thompson, Peteraf, Gamble, Strickland, 2012, p. C-127). Blue Nile has found a niche in which to differentiate itself by creating an online food marketplace for jewelry shopping and with low operational costs which makes them 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- karat, clarity, color, cut, and cut grade.StrengthThe company has a user friendly site that subject a lot of diamonds styles to choose from with the 5Cs of diamond selection which atomic number 18 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 competes in a small area with a specialty tining. Brand awareness remains a constant source of weakness for the company. Blue Nile, Inc. require to increase their advertising campaign to attract new and retain old customers.OpportunitiesBlue Nile consumes to give rise a strong brand awareness that will al low can compete with Tiffany and Co. Blue Nile, Inc. belatedly opened warehouses in Canada and Britain, but has limited globalization to sales of 40 nations. Blue Nile will need global growth into the European market could prove to be a financial success.ThreatsThrough 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 usable for the firms day-to-day 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 million in sales in 2009, they had a colossal year but in reality only maintain a less than 1% of the market industry hold. This suggests that there is room for growth in this are. With steady profits for the past two years, 2011 has been the vanquish year even though the 4th quarter resulted in small loss. The company profits are 2011 $348 milli on, 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 take 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 edition it also. In reviewing the financials and the Internet site, it is apparent 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 expanded range of products across several price points. This market should offer a great amount of growth oppor tunities for now and the future. All in all the brand and phone recognition is the key aspect that the must pay attention to.Discussion 6.1 Michael VeltmanMichael,Your post was very insightful. A main issue for Blue Nile is the lack of movie through the their advertising. Blue Nile offers the best prices while muted 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 need more revenue.