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Thursday, February 14, 2013

Blue Nile Case Analysis

regretful Nile Case Analysis
1) Do all the elements in the dodging fit together? Or are there organic contradictions?

The main elements of Blue Niles strategy High spirit, private-enterprise(a) price, customization, informative website, good customer service and support, long precondition supplier contracts, negative cash flow cycle, certification, mug recognition, reliability, doodad and speed of delivery- have enabled it to establish itself as the number nonpareil online diamond retailer.
Although it has a sound overall strategy, under war-ridden pressures, certain elements conflict each other dampening its identify as a market leader.

1.Pull back on advertising (purchase of keywords) v/s increase in brand awareness and recognition
2.Increase inventory of fine jewelry v/s lean operating model
3.Customization v/s free-enterprise(a) price
4.Outsourcing operations/ operate v/s maintaining spirited quality customer service
5.High value sales (6 digit iodin sales) v/s high gross margin
6.Cutting prices to piddle sales v/s change magnitude net income

Blue Niles sells only through the Internet. Pull back on online advertising, collectable to increased cost; lessen its visibility on reckon engines, simplification brand identity and recognition.

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Further increase in product line both in terms of high price and product variety, to attract a large set of customers, put forward affect their lean operating model increasing inventory costs. Increasing customization options could also affect its belligerent pricing increasing operation costs. Even though outsourcing operations and services can help keep a better tell but in times of high demand they can be compromised since they are not directly a pct of the society. The quality of the service is dependent on the ability of the outsourcing company and not Blue Nile.
Further, it set lower gross advantage margins on high value sales (just to make the sale) reducing profitability. Aggressive sales based merely on competitive pricing leads to lowering its...If you want to get a adequate essay, order it on our website: Ordercustompaper.com



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