Blue Nile Inc
Blue Nile Inc was established in 1999. Since then, the Company’s performance has been tremendous making it the largest online retailer in diamonds dealings. It is based in Seattle Washington and has specialized in fine jewellery.
In addition, the Company is a leader amongst online retail businesses in diamonds as well as fine jewelry. The Company delivers quality customer experiences through giving the respective customers better options of purchasing jewelry and rings.
The Company also gives special online tools that ensure the customer is the one in control of the entire shopping process. Their prices are cheaper than most of the jewelry retailer companies, yet their quality, is significantly higher.
What is going on?
In the year 2010, Blue Nile delivered good results in the fourth quarter, which was catalyzed by the holiday season. This formed the highest and most productive financial period for the company.
During such seasons, Blue Nile Inc is well placed so that it can maximize on the opportunities of growth as they expand their client base. The Company released a report that contained the level of unpredictability in the business as well as the future risks that would be encountered.
Financial statements, market opportunity and the future plans on how to expand the business and the areas of target were released. Economic conditions were predicted based on analysis of the price fluctuations depending on the different seasons experienced in terms of clientele.
Blue Nile Inc. had to consider the strength of their brand and the level of availability in a cost effective way. Their internal capability to satisfy their clients for the main purpose of growth was also summarized.
SWOT Analysis
These are the strengths, weaknesses, opportunities, and threats associated with Blue Nile Inc. The SWOT analysis is crucial in comprehending the various risks and potential of any investment.
Strengths
This was composed of internally generated long-term advantage in the industry. The strength of a company may give it an advantage in the long run over its competitors.
Economies of scale, as well as developing a good name for the company in terms of corporate image are some of the strengths a company may posses.
Weaknesses
These are long term essential business elements that are generated within the company. These are factors that can also be controlled internally because they cause difficulties for the business and would require a specific amount of time to fix. A good example would be an inefficient tax system.
PEST Analysis- Stands for political, economical, social and technological factors that influence the results of a company.
Opportunities
External conditions that could be of great help to a company. A good example would be cheaper energy prices that would make the economy grow, leaving a good opportunity for such an organization to trade with good prices.
Improvement of technology would be a positive factor for Blue Nile Inc. since it would boost the speed and efficiency of their work.
Social factors would involve relationships between people, meaning that if a client receives good service, they are likely to influence someone they know to go for the same thing.
This is a great opportunity for this organization to improve their client services so that they can get more.
Threats
These are external conditions that are harmful to a company’s performance. These factors could be unpredictable such as reformations in the housing sector and an unstable economy.
A country that is politically unstable may be a threat to an organization since it may hinder more investment. Civil wars may stop a company from trading as it should have.
Economic factors such as high taxes may work against an organization because they would have to increase their prices and this may lower the number of clients.