Case blue nile Essay Example | Topics and Well Written Essays - 1000 words

Case blue nile - Essay Example SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis deals with examining the internal and external factors impacting the actions and performance of the organization. While strengths and weaknesses can be identified by scrutinizing the internal factors, opportunities and threats are revealed by investigating the various macro environmental aspects like political, social, economic, legal and environmental forces. The biggest strength of Blue Nile is its ability to keep its costs under control. The company has a vast array of products in its repertoire and thus provides its customers a wide choice. It has an economical supply chain, a lean hierarchy and does not give any mark up to the wholesalers and retailers. All these aspects help Blue Nile to keep its operating costs low. The online retailer boasts of exceptional customer service. Blue Nile provides grading reports on its website that enables customers to purchase just the ‘right kind’ of jewelry. Every diamond marketed by Blue Nile is graded either by the Gemological Institute of America (GIA) or by the American Gem Society Laboratories (AGSL). Blue Nile also maintains favorable relations with its suppliers. The company has managed to ink pacts with numerous suppliers and therefore is not dependent on one particular supplier for the purchase of diamonds. Blue Nile offers its customers more than 60, 000 diamonds and hundreds of settings. However, the company derives majority of its revenue from the sale of engagement rings. The company has not been able to chalk out a strategy to increase the percentage of consumers to buy jewelry items online. Another weakness is that the company’s net profit margin at 4.2 percent is very low especially when compared to the net profit margin of 9.8 percent at Tiffany. Blue Nile provides ‘trust, guidance and value’ to its customers. These features are now being provided by its competitors as well. If