Does Blue Nile’s business model result in a winning strategy? Blue Nile’s business model involves selling high quality diamonds at low prices online. The first hurdle for them was to make the buyer feel comfortable buying a high ticket item that has many characteristics that could affect the products quality. They effectively alleviate the consumers concerns by providing them with information and guidance during their shopping experience. The consumer is then able to educate themselves about what determines a diamonds quality and value.
Lessens need to purchase “hard copy” of these. * Other competitors; Circuit City, CompUSA, Amazon.com, even Wal-Mart, Target, etc. * Possibility of losing customers to wholesale business. I think that for the most part Best Buy has lived up to their mission statement, because they are at the intersection of technology and life. I believe this to be true because they offer some of the newest technology in their store and it is place where people can actually interact with salespeople in real life.
Tony Qian 1/13/2011 BUAD 441 – Individual Case Study1 Blue Nile, Inc. – World’s Largest Online Diamond Retailer 1. What key factors will determine a company’s success in the online jewelry business in the next 3-5 years? The online jewelry business will be highly dependent technology. They will also need to keep good relationships with the organizations that certify their diamonds. They need to give their customer a safe, comfortable environment in which to make high dollar purchases.
Despite CanGo’s initial success, however, the organization is not without its fair share of concerns. The primary issue with CanGo is that it lacks a formal strategic business plan. The company has also failed to clearly define what its short-term goals and long-term goals are and how it plans to go about realizing those goals. The company also has problems with its current organizational structure. Although roles are clearly defined, CanGo often succumbs to a centralized form of decision-making, with Elizabeth Bennett micromanaging to such a degree that the decision-making process almost becomes paralyzed.
Zappos does not complete on price because it believes customers want to buy from the store with the best service and selection. The company strives to create a unique and addicting shopping experience. The spirit of simplicity, innovation, and great service extends to Zappo’s inventory and distribution systems as well. Zappos has one of the few live inventory systems on the Web. If Zappo’s displays an item, it is in stock.
While all five of the competitive forces are strong when analyzing Blue Nile and other online retail jewelers, the strongest competitive force is analyzing rivalry determinants. • Industry Growth - As the online diamond retail industry is growing steadily (10.7% increase in internet sales from 2008 to 2009) it is becoming more attractive for new entrants to enter the market and capitalize on the increased profit. • Fixed Costs or value - The benefit of an online store is that fixed cost are minimal, because fixed costs are only a small portion of total costs incurred, competitors feel more inclined to enter into the market • Product Differences - As diamonds are a tangible products that can be compared easily it is important for online retailers to make their customers perceive that their products is different to those of their competitors (such as offering exclusive jewelry lines) and it will also be important that the customer values that difference • Brand Identity - Customers need to perceive the strength of the brand in the industry, it is important for online retailers to have a respectable brand as the stronger the customers brand preference the lower the risk of competitive rivalry. • Switching Costs- Due to the low switching costs, it is easier for online retailers to change suppliers and leads to a high risk of competitor rivalry. • Concentration and Balance - There are a lot of competitors in the industry and they all
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 ofabout 75,000 stones. Customers purchasing at Tiffany and, until recently, at Zales have beenlimited to the inventory available at the store. Customers who are comfortable making largepurchases online will find the low-pressure purchasing experience at Blue Nile, supported by theeducational Web site, salaried sales support, and thirty-day return guarantee, appealing. Giventhat the jewelry is made to order, clients at Blue Nile must be willing to wait to receive theirorders, unlike at Tiffany or Zales.
I also have great organization skills that allow me to get duties done in a quick manner. I am a fast-past worker, but also know how to be very patient when needed. I enclosed my resume along this letter. I am confident my skills and experience will value your company. I would extremely appreciate if you call me for a interview session along with my fiance.
The type of influence tactics that can be used throughout KFF are proactive influence tactics. The tactic I would use the most across all the different managers is collaboration. This will allow for the consultant and staff to build a healthy working relationship. To get complete buy-in from the CEO for the steps KFF needs to make to have the change initiative a success I would use rational persuasion. Giving her all the fact will allow Kathy Kudler to make a good decision about what steps KFF needs to make from top to bottom to allow the new software to be accepted throughout the organization.
I think that being able to connect with your manager as an employee is important, and not having to fear their title will allow them to be more approachable by employees who may present new ideas, and ways to better service our customers. Another aspect of the manager’s job at my company would be to consistently make sure all employees were educated on our software and how it compares to our competitors. Having this knowledge will empower employees to help overcome potential objections by customers and make them a trustworthy source of information.