Blue Nile Inc. has been one of the leading online diamond and certified jewellery seller for the last one decade. The company was found in 1999. However, it went public in the year 2004.
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Since then, it has been experiencing a tremendous growth in its operations and activities. Blue Nile Inc. has managed to establish a strong brand name in the jewellery industry.
Through its high quality products and state of the art services, the company has been able to satisfy the needs of its customers. As a result, most of its customers have been loyal to the brand. This has not only enabled Blue Nile to maintain its customers but also to attract new ones.
This has in turn resulted to an increase in its annual revenue since the company was incorporated. In the year 2009, Blue Nile Inc reported annual revenue of $302 million. This is a great indicator of the growth of the company and the success it is enjoying. The company had reported an annual revenue of $169.2 million in the year 2004.
Despite the success that the company has been enjoying, it is yet to realise its mid-term and long-term goals. Blue Nile Inc. wishes to expand its activities into overseas markets. In addition, the company want to encourage customers to shop on line for diamonds and other related jewellery.
To achieve these goals, Blue Nile Inc has come up with several strategies. To determine if these strategies will be successful, a SWOT analysis shall be conducted to determine the chances of success that Blue Nile has.
In the course of its operations, Blue Nile has a number of strengths, weaknesses, opportunities and costs. The main strength that Blue Nile Inc. has is a strong brand name.
The company has been renowned for its high quality products that are as per the consumers specification. Due to this, many customers have been attracted to the companys products. The company also has impressive turnover rations.
In 2009, the company had a fixed asset turnover ratio of 39.08 3.86 7.18 7.30. It also had a ratio 60% return on equity ratio. These figures are much higher than that of its competitors.
Furthermore, its products are valuable since are of high quality. However, there are a number of online companies and brick and mortar jewellers. Another weakness that the company faces is the availability of materials.
Blue Nile does not have a source of raw materials. Therefore, it relies on its suppliers for products. This reduces the ease at which the product can be acquired.
However, some opportunities may assist the company to achieve its goals. First, the United States has a stable political environment.
Therefore, there is no political interference that may affect the operations of the company. Furthermore, the countries that Blue Nile wants to expand into, like England, have good diplomatic relations with USA.
Despite the recession that has been experienced in USA since 2008, Blue Nile Inc. has been able to increase its revenue. This is as a result of the stability of the jewellery industry in the US and the world at large.
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This has been supported by the increased demand of the society to purchase diamonds and jewellery not only for special occasions but also for everyday wear. The current trends in technological advancements have also supported the online operation of the Blue Nile.
This has resulted in an increase in online sales that the company is making. Information Technology has thus made it easier for Blue Nile to reach its customers and advise them on what to buy.
However, the company is facing a lot of threats from other online companies that sell the same products. Diamond.com, Whiteflash.com and JamesAllen.com are just but some of the companies that offer stiff competition to Blue Nile.
However, through its policies and strategies, Blue Line will be able to have a competitive edge over its rivals.
It needs to take advantage of it strengths and opportunities and improve on its weaknesses and overcome its threats to guarantee its success.