Blue Nile Case Zequn Fan
Case Study - Blue Nile, Inc.
Zequn Fan (Ford)
Executive Summary
Google is a well-known technology giant in the IT industry. Motorola is a well-known manufacturer of mobile devices.
Blue Nile, Inc. is the largest online jewelry, mainly diamond, retailer around the world. Their business model is pioneer in the industry. However, Blue Nile found itself stuck in the middle, because of Tiffany's and DeBeers' occupation of high end market and Amazon's and Overstock.com's occupation of low end. In order to better understand Blue Nile's position, a value chain method will be adopted. The following analysis will focus on recommendations about Blue Nile current position in the market.
Background
Blue Nile was a jewelry trading company founded by Mark Vadon in Seattle 1999. Mark had a very unpleasant experience when he attempted to buy his engagement ring. So, he later decided to establish a company which can educate its customers and offer a better product with discounted price. The original business idea now became a public company. Blue Nile operates in over 25 countries all over the world through its three main website, US, UK and Canada. Blue Nile completes all the transactions online, instead of a traditional physical store. Customers trust Blue Nile because it also offers a 30-day return policy. As a pioneer, Blue Nile also offers free shipping policy and education to its customers so that they can customize their own rings and so on. However, as the business expanded successfully, Blue Nile found it result in an awkward position in the market, right in the middle of the market with low profit margin. (Hoffman, 2010)
Key Issues and Challenges
Traditionally, people tend to choose an expensive stone as their engagement ring. However, the trend tends to shift. Young people may give up this tradition, so the industry which Blue Nile is in will decrease.
The online shopping habit in developing countries is immature. People in those countries still don't trust
Zequn Fan (Ford)
Executive Summary
Google is a well-known technology giant in the IT industry. Motorola is a well-known manufacturer of mobile devices.
Blue Nile, Inc. is the largest online jewelry, mainly diamond, retailer around the world. Their business model is pioneer in the industry. However, Blue Nile found itself stuck in the middle, because of Tiffany's and DeBeers' occupation of high end market and Amazon's and Overstock.com's occupation of low end. In order to better understand Blue Nile's position, a value chain method will be adopted. The following analysis will focus on recommendations about Blue Nile current position in the market.
Background
Blue Nile was a jewelry trading company founded by Mark Vadon in Seattle 1999. Mark had a very unpleasant experience when he attempted to buy his engagement ring. So, he later decided to establish a company which can educate its customers and offer a better product with discounted price. The original business idea now became a public company. Blue Nile operates in over 25 countries all over the world through its three main website, US, UK and Canada. Blue Nile completes all the transactions online, instead of a traditional physical store. Customers trust Blue Nile because it also offers a 30-day return policy. As a pioneer, Blue Nile also offers free shipping policy and education to its customers so that they can customize their own rings and so on. However, as the business expanded successfully, Blue Nile found it result in an awkward position in the market, right in the middle of the market with low profit margin. (Hoffman, 2010)
Key Issues and Challenges
Traditionally, people tend to choose an expensive stone as their engagement ring. However, the trend tends to shift. Young people may give up this tradition, so the industry which Blue Nile is in will decrease.
The online shopping habit in developing countries is immature. People in those countries still don't trust