Blue Nile Swot Analysis

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KY Management 351 Blue Nile SWOT Analysis What are Blue Niles three top strengths? 1. Blue Nile’s low prices. Blue Nile sells exclusively online and this allows them to offer competitively lower prices than companies with physical stores. Blue Nile’s supply chain efficiency allows them to have lower operating costs. Blue Nile bypasses the wholesalers and brokers, which gives them a great opportunity to obtain a more cost-efficient product. Blue Nile and their suppliers also have multiyear agreements whereby Blue Nile only purchases diamonds and gems when a customer places an order. The low operating cost allows Blue Nile to offer their customers discounted prices at about 20% to 35% less than the traditionally established stores. 2. Blue Nile’s commitment to quality. Blue Nile attracts their customers by offering top quality diamonds and fine jewelry. Blue Nile’s strategy to provide jewelry shoppers with a wealth of information educates them on the things to look for in choosing diamonds. The information entails such things as the 4 C’s (cut, color, clarity and carat) which helps ease the customer’s fears about online jewelry shopping. 3. Blue Nile’s offering of Customization. Blue Nile specializes in customization of diamond jewelry with a ‘Build your own feature’, which allows the customer to design their own rings, pendants and earrings. Customers select the diamond and can choose from a variety of settings, which are designed to match the characteristics of each diamond. Which are Blue Nile’s key weaknesses? 1. One of Blue Nile’s key weaknesses is that it does not have a physical store. An online customer does not experience the touch and feel of the product. Sight unseen online ordering is a scary proposition for many customers. Customers making a big investment purchase in diamonds prefer to do it person. The majority of

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