How do Blue Nile, Zales, and Tiffany compare on those dimensions? What strategic issues and problems does Blue Nile management need to address? It is very important to have a thorough reading and understanding of guidelines provided. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. In amassing product offerings, these online jewelers do not have to carry inventory. It was designed to help new students become familiar with human resource management, providing both realistic and practical scenarios… Report of the lessons learnt in the Blue Spider Project Case studies. All diamond retailers are hit by the downturn and are facing a critical look at their strategies. Because items sold through the Blue Nile Web site are customized.
However, its customers must forego a hands-on purchasing experience as well as the. Zales Jewelers was established in 1924, and primarily deals in the lower-end jewelry market, targeting middle class shoppers. Initially, fast reading without taking notes and underlines should be done. Blue Nile and Diamond Retailing 1. Words: 25869 - Pages: 104.
When searching online for jewelry and diamonds in particular, the company has done well in establishing their address in the different search engines. The competitive forces are strong because there are many jewelers who have both online and in store options. . Blue Nile has an obvious advantage in this regard with its very low fixed-cost structure compared to Tiffany and Zales. It is associated with glamour, luxurious, trust, and customer service.
The related audit objective for this procedure is existence. Words: 980 - Pages: 4. The case focuses on the diamond retailing industry toward the end of 2008, with the United States in an economic downturn. Many people say the name commonly refers to the High dam. Sales of high-end jewelry will decrease instantly in a weakened economy.
However, they have negotiated multiple vendor agreements, and have price certainty into next several years. The primary competitors for Blue Nile involve the online market place including places like Diamonds. All diamond retailers affected by the crisis and face a critical look at their strategies. Time line also provides an insight into the progressive challenges the company is facing in the case study. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Blue Nile is a publicly traded company that operates in 25 different counties.
There are synthetic diamonds, manmade jewels and alternative jewels. Tiffany uses an e-business to sell their lower-end jewelry and stores to sell their higher-end jewelry. Given that Tiffany stores have thrived with their focus on selling high-end jewelry, what do you think caused the failure of Zales with its upscale strategy in 2006? Using the e-business approach would allow all three of these companies to efficiently capture historical sales data to forecast demand and make new products available as soon as possible. But for engagement rings and wedding bands, people would still choose those real and precious diamonds and materials. And the buyer power is low if there are lesser options of alternatives and switching.
Do a five-force analysis to support your answer. It is used for the purpose of identifying business opportunities and advance threat warning. Another competitor in the diamond industry is Whiteflash. Research mining, refinement, and manufacturing practices of gold that moves through the supply chain. By having such a large percent of purchases come from one supplier it really puts pressure on the company because they rely so heavily on one supplier and any trouble with this supplier could result in major losses of Blue Nile. Providing two undesirable alternatives to make the other one attractive is not acceptable.
Good financial condition with a positive amount of cash flows Weakness: 1. Also while educating their customers and providing guidance to the way that Blue Nile offers it shopping experience. Blue Nile is also more susceptible to the rising costs of diamonds and of labor because it does not purchase the majority of its diamonds until a customer decides on a purchase. After defining the problems and constraints, analysis of the case study is begin. Starting around 6,000 years ago, The Egyptians became mining a semiprecious stone called lapis. However, even though these things have taken the company to where they are today, there is a need for developing and increasing the customer base.
This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops. Please place the order on the website to your own originally done case solution. There are synthetic gemstones, cubic zirconium and other jewellery options, but the general consumer does not see these as a true substitute for real diamonds. Executive Summary The purpose of this case study is to measure the success of Blue Nile against Tiffany and Zales success in diamond retailing by comparing retail strategies and structures.