Assessment of Blue Nile

October 12, 2012
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Contents
WORKSHEET 2a – PORTER’S 5 FORCES MODEL - EXTERNAL ENVIRONMENT 2
WORKSHEET 3 – DRIVING FORCES OF CHANGE - EXTERNAL ENVIRONMENT 3
WORKSHEET 6a – COMPETITIVE ANALYSIS PROFILE - EXTERNAL ENVIRONMENT 6
WORKSHEET 8 – GENERIC COMPETITIVE STRATEGIES 8
WORKSHEET 10 – KEY FINANCIAL RATIOS - INTERNAL ANALYSIS 9
WORKSHEET 11 – INTERNAL ANALYSIS PROFILE - INTERNAL ENVIRONMENT 12
WORKSHEET 12 – SWOT ANALYSIS - INTERNAL ENVIRONMENT 13

WORKSHEET 2a – PORTER’S 5 FORCES MODEL - EXTERNAL ENVIRONMENT

WORKSHEET 3 – DRIVING FORCES OF CHANGE - EXTERNAL ENVIRONMENT

|COMMON DRIVING FORCES |ANALYSIS OF DRIVING FORCES OF CHANGE |
|Growing internet app’ns |Increased access to internet |
| |Build Your Own Feature - more and more online jewelry retailers have a feature for shoppers |
| |to customize orders |
|Increasing globalization |Blue Nile has 40 international markets where 35 of them can make their purchases in local |
| |currency (p185) |
| |UK website in 2004, Canada website in 2005 Chinese website in 2010 |
|Changing LT growth rate |Fluctuates with the global economy - very volatile. Recessions cause sharp declines in