Blue Nile Essay

2114 Words9 Pages
1. BACKGROUND INFORMATION Timeframe2010 | Country(s) Involved USA, Canada, UK trough websites | Key Individuals & Titles It was founded by Mark Christopher Vadon and Ben Elowitz on March 18, 1999 | Company Type & Size The company sells the products on its websites. Because of its unique business model the company sells its products at much lower prices than the competitors. The company had 183 full time employees, 5 part-time employees, and 1 independent contractor. | 2. BRIEF SUMMARY OF CASE SITUATION Business or Industry Description Blue Nile had grown to become the world’s largest online retailer of certified diamonds and fine jewelry. | Blue Nile’s Current SituationBlue Nile reported $302 million in 2009. In 2010 Blue Nile management was concerned about the lingering effects of poor economic condition in the United States on the diamond jewelry industry and how it should pursue expansion in international business. | 3. INDUSTRY AND COMPETITIVE ANALYSIS Industry Macro-Environmental Characteristics-According with U.S Department of commerce U.S jewelry sales totaled $58.8 billion by 2009.- Diamond jewelry sales were particularly hard hit by the recession, with industry sales declining from $32.5 billion in 2005 to an estimated $29.5 billion in 2009.- The Jewelry Board of Trade estimated that there were some 22,415 specialty jewelry firms in the U.S in 2009, down from 26,750 specialty jewelry retailers in 1999. | Strategic Group MAPBlue Nile Zale Tiffany Others C U S T O M E R S | Industry Driving Forces-Internet: With Blue Nile and online jewelers, it gives them the ability to reach any single person who has internet access. In amassing product offerings, these online jewelers do not have to carry inventory. They are able to display tens of thousands of choices, customizable pieces and even show multiple angles of

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