Blue Nile Essay

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Case: Blue Nile Inc. Section 6 (3 pm), Group 9 MI021 Computers in Management, Fall 2007 Group Members: Heidi Francis Ally Giansanti Matt Gibbons Andrew Jeong Michael Sickler It all started back in 1998 when Mark Vadon, the current CEO of Blue Nile, was snubbed at a Tiffany’s in San Francisco while looking for an engagement ring. Vadon decided to try his luck online instead of dealing with this frustration and ended up buying a ring from Internet Diamonds. The next year he visited the firm’s lone store in Seattle and bought the company for an undisclosed amount. The rest is history. Today, Vadon’s startup, Blue Nile, has become the largest online retailer of certified diamonds, accounting for one-third of all jewelry sales over the internet. Overall sales at the firm have risen at a rate of 30 percent per year. Since 2005, profits have increased by 32 percent. While the numbers are impressive, that is not the only thing that Blue Nile is concerned about. The customer centric company consists of 159 employees who work through the firm’s main website, bluenile.com. Blue Nile offers high quality diamonds, certified by independent diamond grading labs, and lets the customer create their own work of art in selecting a diamond. The company’s success has led it to be declared one of the top internet firms amid recognition from such publications as Forbes and BusinessWeek. As an online retailer of diamonds and fine jewelry, Blue Nile provides excellent guidance and support to enable customers to learn about and purchase diamonds as well as classically styled fine jewelry. The company has a current market value of approximately $2 billion while the firm continues to grow. Blue Nile typically trades at about $100 a share after an initial public stock offering of $25 back in May of 2004i. The company has drastically increased its trading

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