Blue nile online diamond retailer
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Transcript of Blue nile online diamond retailer
Blue Nile Inc.: World’s Largest Online Diamond Retailer
Seminar #1
April 10, 2023 Seminar #1 2
Organisation Profile
Retailer of certified diamonds and jewellery since 1999.Founded by Marc Vadon
Larger than next 3 largest online jewellers combined: Internet Retailer, 2006
Rewards & Recognitions• Internet Retailer
Best of the web company,2007
• Forbes favourite, 2000-2005
• BizRate.com Circle of Excellence Platinum Award, since 2002
• Best online jeweller – Kiplinger’s Personal Finance, Nov 2006
April 10, 2023 Seminar #1 3
Strategic Vision
•To offer high quality diamonds & fine jewellery at outstanding price and to continue our leadership in our core business.
Objectives•To distribute all over European and Asian continents•To effectively manage future expansion•Continued establishment & promotion of Blue Nile brand•To continue to enhance customer experience
April 10, 2023 Seminar #1 4
Business Strategy
Blue Nile – A brand to reckon with in diamonds & fine jewellery
The highest quality standards in the industry
Comprehensive education
and guidance
Unmatched diamond selection
and interactive search tools
Commitment to a superior customer
experience
April 10, 2023 Seminar #1 5
Porter’s Five ForcesThreat of substitutes – EBay
Threat of new competitors – Whiteflash.com
Sustainable competitive advantage – Competitive pricing, Wide network of
Suppliers
Bargaining power of buyers - Displaced decision-making
Bargaining power of suppliers - They do their own diamond cutting and polishing,
jewellery crafting and distribution
April 10, 2023 Seminar #1 6
Ethical PracticesEnsure that gold & metals come from suppliers that meet
the highest human rights, social, and environmental criteria.
Engage suppliers to influence the sourcing of gold products.
Research mining, refinement, and manufacturing practices of gold that moves through the supply chain.
Give preference to suppliers that source gold from mines that observe high standards of environmental stewardship.
Commit to increased gold sourcing from recycled and secondary sources.
Measure and establish benchmarks with a goal of continuous improvement.
April 10, 2023 Seminar #1 7
Special Characteristics
Lean Operating
Costs
Supply Chain Efficiency
Competitive Pricing
April 10, 2023 Seminar #1 8
Competitive Pricing
They are able to provide diamonds based on the customers preference
Different types are available on the basis of cut, clarity and colour
Hence the customer can choose what he/she can afford
Source: www.bluenile.com
April 10, 2023 Seminar #1 9
Lean Operating CostsOnly 146 employees
• 133 full time +Contractors & temporary personnel
Operations via combination of proprietary and licensed technologies
Use of redundant internet carriers to minimise service interruptions
On-call team to respond to emergencies and technology issues
April 10, 2023 Seminar #1 10
Supply Chain EfficiencyBypassed markups of traditional layers of diamond wholesalers and brokers
• More than ½ of total supply of high quality diamonds in US
Display of leading diamond and gem supplier’s product on web
Huge supplier network
Just In Time (JIT) inventory
Using suppliers as the 3rd party inventory holders
April 10, 2023 Seminar #1 11
Educational Information & Certification
April 10, 2023 Seminar #1 12
Marketing StrategyIncrease Blue
Nile brand recognition
Generate consumer
traffic
Acquire customers
Build loyal customer
base
April 10, 2023 Seminar #1 13
Order Processing
Order placed
Supplier ships
diamond to Blue
Nile
Sent to assembl
y for setting
& sizing
Inspection
Shipment to customer• Usually
through FedEx
April 10, 2023 Seminar #1 14
Growth Strategy•Price•Product mix•Customised•Non-customised
Expansion of product
line
•Based on consumer preference for jewellery•Extent of online purchasing•Competitive landscape
Geographical
Expansion
April 10, 2023 Seminar #1 15
Supplementary Strategies30-day return policyFree shipping within USAppraisal stating the approximate retail
replacement value of the item
April 10, 2023 Seminar #1 16
Environment ScanGrowth in US jewellery marketIncrease in number of online & offline
retailersBrick & mortar retailers started websites to
boost their salesMen Most likely customers of online
jewellery storesBlue Nile – “A guy’s best friend”
April 10, 2023 Seminar #1 17
Criteria Bluenile.com
Diamonds.com
WhiteFlash.com
Ice.com
JamesAllen.com
Established
1999 2000 2001 1998
Range of Products
60,000 40,000 About 1000
300,000
55,000
Distinct feature
Competitive pricing
- Trade-up program
EMI option
s
Finest Collection
Information on
website
Yes Yes Yes (video tutorials)
No Yes (3D Viewing)
Competitors
April 10, 2023 Seminar #1 18
What could be done…Improve the collection of jewels3-D view of diamondsMechanism to identify the ring sizeAuction sales
April 10, 2023 Seminar #1 19
Thank You