The Blue Nile case Analysis

The Blue Nile case Analysis

Introduction

This case study is based on Blue-Nile incorporation. The theme of the case revolves around how the company will remain world's number one online diamond retailer. The assignment has identified that customers, suppliers and competitive companies are the real decision maker of the organization. The case has identified that Blue-Nile is facing tough competition from Amazon.com. There are around 27,000 jewelry chains in United States which are considered as one of the biggest problem statement of this case (Thompson, 2010, pp 127-140). Online trade and consumer buying behavior are also considered as one of the problem statement of this case. There are few alternatives which will help Blue-Nile to overcome the problems.

Decision makers

The chief decision makers in the case of Blue-Nile are buyers, rivals and suppliers. The analysis of Blue Nile case has identified that the major decision maker are customers and they are significant in decision making process. It is believed by experts, that customers are the king of market, and they are the one who make the product successful or fail. The jeweler products which are manufactured by Blue-Nile are offered to the customers, so they are the decision makers. The competitors of Blue-Nile also play an important role, in decision making process. Decision making is based on internal and external factors; internal factors are the company resources, whereas external factors are customers, suppliers and competitors (Thompson, 2010, pp 127-140). After analyzing the case it reveals that customers are the real decision makers, because the final impact of all the decision is based on sales and profit.

Problem statement

The case has several problems and issues. The main concern is based on high rivalry among the competitive sellers. As there are 27000 jewelry outlets, the competition among the rivals is also strong. The number of competitors in the market is high and similarly, the intensity of the competition is also high. Blue-Nile has to keep an eye on e-business trade, in order to keep the sales in flow. The entry in jewelry business is not an issue for more competitors and there could be increased number of entrants expected. The bargaining power of buyers is moderate, but they can delay the payment for a longer period which can become a hurdle. The leading online jewelry traders are quite established in the United States market, which is regarded as one of the biggest problem of this case. Recommendations have been given at the end of the case study.

Identify alternatives

The problem in the case identified is high competition (especially online), and the threat of new entrant. These problems are affecting the sales and profits of Blue-Nile. There are different alternatives which can be utilized to overcome these problems.

Blue-Nile has to strengthen their online business in order to cater mass audience.

Continuous environmental scan

Marketing campaign

Quality product offering to customers.

Analysis of alternatives

Amazon.com is the biggest online chain which is giving tough time to Blue-Nile. Amazon has done the marketing of their jewelry ...