Preview

Problem Faced by Blue Nile Company

Good Essays
Open Document
Open Document
1110 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Problem Faced by Blue Nile Company
Problems

There are several problems that Blue Nile needs to deal with if they wish to remain on top such as:

❖ One of the major problem with web based marketing is maintaining and driving consumer toward the website which will pose blue Nile’s major challenge going into the 21st century so how to attract new consumers.

❖ How should Blue Nile Inc increase consumer awareness and confidence purchasing high value luxury jewelry online?

❖ Blue Nile has very little presence outside of the United States and only offers a limited number of products in United Kingdom and Canada.

❖ The cost to buy keywords on Internet search engines rose significantly in 2005, which result in cutting back on advertising expenditure, which lack in attracting customers.

❖ Traditional jewelry retailers such as Zale’s, Sterling, and Tiffany have begun to sell products online increasing competition for Blue Nile.

❖ Blue Nile’s expenses for sales and cost for general and administrative expense are increasing as a percentage of net sales. This presents a problem because Blue Nile’s competitive advantage in the online jewelry market largely depends on their low costs and low prices.

❖ Blue Nile has an excessive amount of debt, which can damage its credit rating and overall financial condition.

Strategic Issues

Blue Nile needs to address five major strategic issues:

❖ Blue Nile needs to decide how it can further deal with the obstacles associated with online retailing.

❖ Blue Nile needs to decide if it should expand its operations and offer more products outside of the United States.

❖ Blue Nile needs to determine how it can effectively and affordably market its products online.

❖ Blue Nile needs to determine how it can retain its market share when faced with increasing competition in a small industry.

❖ Lastly, Blue Nile needs to address its financial problems before the problems

You May Also Find These Documents Helpful

  • Powerful Essays

    Bejeweled Inc is a well known jewelry store which has locations in Florida, Georgia, and New York. Bejeweled Inc in addition to their stores also provides the jewelry to a few local jewelry stores in the New York area. Brian Leach Owner of Bejeweled Inc opened his first store in February 1995. The first store to open was the store located in Atlanta Georgia, within two years he opened another in Savannah Georgia and another in Brunswick six months later. In In June 2000 Brian opened up two stores in Miami and in March 2008 opened a store in Manhattan New York. Brian is very interested in opening up an E-Commerce where consumers can order online from the store directly. Known for their exquisite fine jewelry and precious gems Bejeweled Inc is increasingly becoming very popular and trying to communicate between shops with all the orders coming in is becoming harder and harder and Bejeweled Inc really needs a better IT solution in order to keep up with the demand.…

    • 2330 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Fin 516 Mini Case Week 2

    • 718 Words
    • 3 Pages

    Using the Fiscal YE filings 1/29/2012 balance sheet: $10,788 Million (debt…. Long Term Bank Loans, Bonds & Debentures, and their Short Term Portions) / $116,918 Million (equity + debt) = .09x (times) Which is very strong. There is financial risk in HD’s exposure to the market in terms of fluctuations in interest rates, and Interest swap arrangements to manage the fixed/floating debt portfolio.…

    • 718 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Higher operating costs of $1,212,597 in total costs and expenses compared to $1,353,494 in total revenue.…

    • 689 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    Foxy Originals

    • 425 Words
    • 2 Pages

    Foxy Originals’ strengths reside in its owners’ experience, stylish products, pricing strategy, and its current market presence. The company’s weaknesses include local market saturation, lack of international market experience, and the high cost of securing retail accounts. Tapping into the US jewellery market creates virtually unlimited opportunities for Foxy Originals. The company will gain a larger customer base, wider brand exposure, and greater international market experience. Although entering the US market presents Foxy Originals with huge opportunities, it also presents significant threats. Threats the company may face are the risk of being eliminated by stronger, better marketed competitors; potentially low demand for its product and expensive marketing and distribution.…

    • 425 Words
    • 2 Pages
    Good Essays
  • Good Essays

    D1 Unit 3 Business

    • 579 Words
    • 3 Pages

    To achieve profit in an online environment they could create a website that allows people to browse through products, to also allow delivery of products to a specified location and to check availability of products. This would allow them to make profit because people will be able to purchase a product from any location with internet access which will increase the amount of sales for John Lewis. The website should also allow customers to check availability and products will help make profit because customers can go purchase the product at the nearest available store. They could also create social networking account (e.g. Twitter, Facebook and YouTube) to post tweets, videos and statuses with information about the latest clothing collections, offers and expansions.…

    • 579 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Blue Ocean strategy is quite important. This is because it allows some business to sell its products with no or little competition from other firms. It is also significant for some new business that does not have enough money for advertising and does not want to sell its products in some market where other industries have already established strong brands.…

    • 957 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    carmex case study

    • 856 Words
    • 4 Pages

    Encourage the new customers to give it a try as internet households interested in online coupons and products ads and etc,.…

    • 856 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Today, Tiffany is a high-end jeweler and specialty retailer. The single most important asset of the company is the Brand. The strength goes beyond the trademark, and is driven by how consumers perceive it. Management believes that consumers associate the Brand with high-quality products, elegant stores and online environment, and their custom packaging- the Tiffany & Co. Blue Box. Going forward, it is management’s goal and business plan to maintain and continue to strengthen the company’s Brand.…

    • 3511 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Giribala

    • 2818 Words
    • 12 Pages

    However, Blue Ocean Strategy does not encourage companies to behave monopolistically, as it will hurt them in longer term. Instead, companies must price their service/product strategically, to win a mass of buyers, which results in a win-win situation for the buyers (value proposition), for the company (profit proposition) and for the employees (people proposition).…

    • 2818 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Transportation cost

    • 279 Words
    • 2 Pages

    As with most retailing, the key success factors in diamond retailing can be measured by customer service factors and cost factors. Given the varied supply chain components and supply chain costs. Blue Nile has a distinct advantage in product variety and product availability since customers can “build their own ring” by choosing from an inventory of about 75,000 stones. Customers purchasing at Tiffany and, until recently, at Zales have been limited to the inventory available at the store. Customers who are comfortable making large purchases online will find the low-pressure purchasing experience at Blue Nile, supported by the educational Web site, salaried sales support, and thirty-day return guarantee, appealing. Given that the jewelry is made to order, clients at Blue Nile must be willing to wait to receive their orders, unlike at Tiffany or Zales.…

    • 279 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Ansoff Matrix of Tesco

    • 566 Words
    • 3 Pages

    They are the world’s leading retailers, They have a well established strategies on which they work, which constitute the very strong base for their growth.…

    • 566 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Business Research Report

    • 1825 Words
    • 8 Pages

    This report was designed to analyze Company A’s decision to expand into online sales. Company A is a well-known and respected company within the retail business and community. As for any business, one will look for new ways to increase their companies net worth. Out of all the individuals in the world that are online, close to 85% of them shop online. If you are only able to tap in to a small population with a brick and mortar it would make sense to get your company online and be available to billions.…

    • 1825 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    engineering

    • 2022 Words
    • 9 Pages

    concerned that if it does not find a way to improve its profitability it may not survive.…

    • 2022 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    There are several advantages and disadvantages of taking a small, local clothing store on the Jersey Shore boardwalk online. The advantages can be identified by strengths and opportunities while the disadvantages can be described as weaknesses and threats. Two strengths of expanding a business online are the ability to sell products 24 hours a day every day of the year and the low cost of expansion (Mokj). With an actual store, a business is limited to selling products only the hours they are able to keep the store open. When a store is not able to be open, there is the possibility that a customer might move on and spend their money elsewhere. However, if the customer knows they can make purchases online, they might go home and purchase the product rather than just go to another store and possibly spend any money they have at their disposal leaving nothing to come back…

    • 2348 Words
    • 10 Pages
    Better Essays
  • Satisfactory Essays

    In order to get the products to the costomer, Habib Jewels Sdn Bhd has acted as a wholesaler. The owner in the first place started out buying jewelry by wholesale or auction of the pawnshop after the expiration of the lease. Habib Jewels Sdn Bhd has now became one of the largest diamond purchasers in Malaysia covering clients not only from our own country but also from Indonesia, Brunei, Singapore, United States and also Europe. Other than that, the company also manufacture its own gems and diamond. Personally going to Mumbai, Belgium, and U.S.A to obtain supply which then designed and manufactured by their pool of local expert jewellers.…

    • 460 Words
    • 2 Pages
    Satisfactory Essays