Blue Nile is a typical business-to-customer ( B2C ) model e-commerce company. Around our unrecorded, most people will non purchase luxury goods ( like vehicle, jewelry makers or expensive accoutrements ) from online retailing. Because there will be a really large hazard when it purchased and conveyance. But merely 8 old ages shortly, Blue Nile had become the universe ‘s largest online diamond gross revenues companies. And to be well-known jewelry trade name same as Tiffany & A ; Co. Blue Nile does non hold any solid shops. But they had sold out 1000s of diamond merely rely on on-line selling.
Blue Nile is a best instance of e-business. Unlike some of its rivals, such as Tiffany ‘s and DeBeer ‘s, who have a brick-and-mortar shops every bit good as an online presence, Blue Nile generates all of its gross revenues via the Internet. Addition there are some highly competitory on-line jewellery industry include mondera.com, ashford.com, denmans.com, diamond.com and kirabo.com. But Bluenile.com received the “ Best of the Best ” award from Forbes in a study of the Internet ‘s top sites among all classs. So the Blue Nile, Inc have to has a alone facet of gross revenues and direction to pull clients. The simple manner lead to success, Its place really clear, and has a much specific benefit market. It is aimed at those who want to purchase diamond nuptials rings for work forces.
Therefore the Blue Nile merchandise line including the diamond, the matrimony abstains every bit good as the jewelry freely and so on, but its host hits the merchandise to be really expressed – -diamond, occupied above its merchandising operation 70 % .On the other manus, Blue Nile chiefly as a business-to-consumer ( B: C ) theoretical account. However, bluenile.com besides generates grosss from affiliate plans, where companies can gain committees by bring forthing gross revenues of Blue Nile ‘s merchandises on their ain web sites. The affiliate plans represent a type of business-to-business ( B: Bacillus ) theoretical account. In add-on, Bluenile.com provides links to consumer-to-consumer ( C: C ) sites such as yahoo.com that characteristic remarks from clients who have purchased jewellery online by Blue Nile.
1b ) In what ways, does the Blue Nile influence in altering the jewellery industry? Explain.
General, gross revenues of diamond is non really specially. But Blue Nile is to the full crystalline gross revenues for diamond. Diamond gross revenues industry has ever been a immense benefit industry. But the general consumers do n’t cognize how many net incomes when the diamond is purchased. Then Blue Nile station inside informations and pricing of 50 000 diamond over the Internet. This behavior has attracted a big figure of consumers.
In add-on, in order to increase the e-business purchase of luxury ‘s trust, making his ain Blue Nile expert ; image, website more content length is all about diamonds and jewelry choice of in-depth debut. And this, in the minutess of both sides of asymmetric information.
Blue Nile attract clients non merely a comprehensive and crystalline consumer usher, and more significantly its monetary value fight. Monetary values of their merchandises than other retail merchants for about 40 % lower, though the monetary value is highly competitory. At the same clip, Blue Nile keeps the high quality of the diamond. Every diamond has to undergo a strict choice procedure, the quality is first-class, every diamond has been an independent quality appraisal and enfranchisement to guarantee quality, the warrant of pureness in a coloring material, every bit good as the cutting procedure on industry criterions. Furthermore, Blue Nile is besides provided the diverseness of pick to client that ca n’t be offered in any jewelry shop. It has 52000 dimensions, colorss and forms vary bare diamond. There are assorted types of pealing bracket for clients to take, and client can see the practical collocation trial practical consequences. At the same clip, it besides has first-class service and security to discourage clients purchase on-line diamond concerns
In add-on to specific rivals, there are two other big expostulations to Blue Nile ‘s concern theoretical account. Blue Nile has to retrieve that the chief plan is buying jewellery by on-line shop that consumers can non really see and touch the merchandise. So the company must recognize that its possible clients are to a great extent exposed to act upon by offline selling. “ The usage of the Internet is entirely a affair of execution-nothing more than a tactic a concern uses to run into its strategic aims. ”
1c ) what are the critical success factors of Blue Nile Company?
Bluenile.com has several success factors including definite selling mark, trade name acknowledgment, low and crystalline pricing, adequate capital support etc.
Blue Nile ‘s client base is comparatively easy to specify. There are about 70 % of the $ 50 billion jewellery industry is male client. Each twelvemonth about 500,000 males wanted to prosecute in the United States. As a consequence, Blue Nile ‘s specifically marks those work forces between 20s and 30s who are seeking for an engagement ring. The Blue Nile usage direct online gross revenues approach to fit mark market, which is predominantly web-savvy. There are several features and issue for Blue Nile needs to observe when selling to possible client. First, work forces ever ignorance about the jewellery industry. Harmonizing a study of 1,200 people conducted by market research house, 75 % of work forces said they do non see themselves knowing when they buying jewellery. The client spends mean three hours on the site before the existent purchase. However, Blue Nile is keenly cognizant that many visitants merely gather information by the web site before buying a piece of jewellery offline. The male can non be underestimated in the on-line jewellery concern. Men decidedly want to affect their important individual when they purchase engagement rings and other jewellery gifts. Although 56 % of work forces will pay more to do certain their important individual will be pleased with her gift, work forces are still concerned with acquiring the most price reduction. Yet another statistic, Blue Nile needs to see is that 59 % of grownup males basking surprising their girlfriends or married womans with keen gifts of jewellery. This presents both an chance and a menace for Blue Nile, which late began adding more merchandise offerings such as tickers and earrings to the web site.
Blue Nile understands how to make its mark consumer. The best online jewelry maker has placed ads on male-oriented telecasting shows such as CBS Market Watch and Monday Night Football. In add-on, Blue Nile has joined other houses, such as Lexus and Mercedes-Benz, forcing merchandises to flush consumers on RedHerring.com. Blue Nile has besides secured arrangement on AOL jewellery class. In another strategic, bluenile.com maintains a prime place on Microsoft ‘s MSN store.
Content: the information and options available at bluenile.com, which provides a immense sum of educational stuff that even the most inexperient jewellery client can understand. General, work forces lack of cognition about jewellery, the educational content provided on bluenile.com is a definite beginning of value. Visitors to the site can larn how to find quality of diamonds, the usher besides include peruse charts and illustrations, position images of assorted jewellery merchandises, analyze a glossary of footings and proficient accounts every bit good as larn how to care for and take attention of jewellery. The educational information provided is decidedly of import to Blue Nile ‘s mark market, particularly since 45 % of all work forces conduct no research prior to buying an battle ring.
The layout and artworks at bluenile.com were clearly designed with a male audience in head. The usage of blue on the website welcome page, a clear interface and easy to utilize bill of fare that will assist visitants obtain information rapidly and experience more comfy at bluenile.com.
The web site provides the instruction is designed to assist visitants make an aim, logical pick when buying a jewellery point. The web site besides provides a constellation program to assist clients take the best diamond for their married woman or miss friend. In short, bluenile.com helps extinguish clients ‘ anxiousness and extinguish the inauspicious choice inherent with purchasing a merchandise when a small anterior cognition for the merchandise. Other content characteristics that add value for the consumer include gift suggestions, enrollment to have a free Diamond Buying Guide, links to manner ushers and satisfied client demand.
1d ) Follow the public presentation of Blue Nile ‘s stock since 2004 ( travel to http: //finance.yahoo.com/ ) and do remarks.
BlueNile.com has implemented an aggressive growing scheme, There are raising $ 42 million in support. Noteworthy investors include Kleiner Perkins Caufield & A ; Byers, Bessemer Venture Partners and Vulcan Ventures. In add-on, Blue Nile received a $ 14 million revolving line of recognition from GE Capital. $ 50 million grosss in 2000 enabled Bluenile.com to capture about 7 % of the on-line jewellery market, which is expected to turn to $ 2.2 billion in 2005.
The graph shows the fluctuation of portion monetary value of Blue Nile Company from 2004 to this twenty-four hours. The Numberss on the horizontal axis represent the old ages and those on the perpendicular axis represent the portion monetary value of the company.
As can be seen, the portion monetary value was at about $ 35 at the beginning of 2004 and so there was a little addition until terminal of 2005 with a small fluctuation. From this twelvemonth on, there was a gradual growing in the portion monetary value of Blue Nile. Because of the consequence from the addition monetary value of international petroleum oil, the portion monetary value soared to a record high ( $ 100 ) .
As is illustrated in the graph, the portion monetary value of Blue Nile decreased twelvemonth by twelvemonth after it reached the extremum at the terminal of 2007. The considerable lessening occurred for the ground that it was affected by the lodging monetary value in U.S. and subprime crisis. This state of affairs did non halt until it hit a trough at about $ 18 at the beginning of 2009. However, afterwards, the state of affairs changed and there was an upward tendency in the figure of the portion monetary value which reached a tableland until 2010. After 2010, the portion monetary value declined easy once more whilst it was between $ 40 and $ 60.
2a ) Amazon.com makes merely a 15 % border on the jewellery merchandises it sells. This enables Amazon.com to sell diamond earrings for $ 1,000 ( traditional jewelry makers charge $ 1,700 for the same ) . Do you believe that Amazon.com will win in selling this type of jewellery as Blue Nile did in selling expensive battle rings?
Amazon even though it was a really successful online selling companies, he has a immense concatenation of providers and financess to guarantee that its merchandise quality and after-sales service
But the theoretical account of Amazon.com is an aggregative e-business theoretical account where the chief value is selection and convenience. Amazon aggregates the merchandises of many providers in a sing location.
It sold a broad assortment of goods, but non targeted. Although Amazon has a powerful monetary value advantages, jewellery merchandises merely 15 % of net income. For illustration, this diamond earrings, Amazon ‘s monetary value is about the traditional jewelry maker of 70 % , this is a really attractive, but will hold a really good gross revenues, but it is non possible as the Blue Nile to sell expensive battle ring. Because the Blue Nile ‘s success is non merely a simple monetary value advantages, there are many topographic points, including market placement, merchandise quality and pick Web site points to, etc.
Amazon Diamond Earrings while the monetary value is cheaper than traditional jewelry maker, but is non selected and the earrings have a clear market orientation. Therefore, this pealing sale can merely trust on the Amazon trade name consequence or other factors, because he does non hold a complete set of value system
2b ) Competition between Blue Nile and Amazon.com will go on to increase. In your sentiment, which one will win ( see their web sites and see how they sell jewellery ) ?
Competition between Blue Nile and Amazon.com will go on to increase, but in on-line jewelry industry competition, Blue Nile still retains the absolute advantage. Although the two companies have many advantages, but compared to Amazon and Blue Nile, there are many defects.
Blue Nile and Amazon are the best of ebusiness industry. They owned the more common advantages ; for illustration, they have a immense sum of fiscal support, the best servicer after gross revenues and conveyance.
But Amazon is more like a immense online shopping Centre, it has a broad scope of goods for people to take Customer necessitate everything that can be found here, and it is besides the provider of pick, be comparison so choose the appropriate point.
So Amazon is an on-line gross revenues web site, but is non the manufacturer. For illustration jewelry merchandise, through the Amazon web site, it has the cooperation with several traditional jewelry manufacturer and the marketer, this has besides guaranteed Amazon ‘s ample supply and prompt bringing, furthermore Amazon has the glorious transit service and the post-sale service, these are Amazon become the most celebrated online gross revenues website the successful factor.
But compared with the Blue Nile, Amazon or some lacks on jewelry gross revenues
1, Blue Nile ‘s mark of market and gross revenues is clear, There are 70 % of clients who want to buy monetary value quality diamond who dedicated intent to come in this site and choose their ware, but the Amazon client ends are those who like Internet shopping people, some of them have their ain intent and purchase ware, but others merely travel shopping-browse, which significantly reduces people to Amazon ‘s buying behavior, and even if you want to buy jewelry merchandise, tend to be more professional web site.
2, Blue Nile ‘s merchandises are high quality, from Blue Nile ab initio established, Blue Nile strict choose providers, but besides has its ain interior decorators, Godhead of diamond, and merchandise proof. Blue Nile on their ain to sell of each piece of diamond are carefully selected by their professional, because online shopping the biggest trouble is that consumers see existent goods, but the Blue Nile client nipped this concern, they guarantee they sell for each merchandise same as the site and 30-day returns warrant, to do client satisfied. And Blue Nile merchandise line is really rich, and even can do a alone merchandise, which will pull more clients.
3, BlueNile.com is non merely a diamond gross revenues Web site, is besides a professional Diamond trade name, including the production and gross revenues, but it did non hold an entity stores, but it merely pass a few old ages gross revenues surpassed the other rivals. It is a company specialising diamond concern, clients could said the trade name of the diamond is Blue Nile, but Amazon is more like a agent, Amazon is non trade name for anything.
4, Blue Nile has important monetary value advantages. Because there is no entity store, all the cost of the Blue Nile are merely diamond itself and transport costs, as it significantly reduces the sum spent on rent and gross revenues staff, Blue Nile ‘s pricing of online is fundamentally the traditional shops 50 % for same trade good. Although Amazon has likewise monetary value advantage, but since Amazon is the function of mediators, the provider remains the traditional jewelry maker, so the monetary value is still less than the Blue Nile
5, Website interfaces. Blue Nile Web site is easy to understand, notably for male clients. The place page shows the chief merchandises and information, it instantly you can happen what they want to salvage clip, while besides rushing up the Blue Nile consumer purchase frequence. Do n’t allow client hold any clip to buy the merchandises. In this respect, Amazon as Blue Nile as duplicability is a comprehensive gross revenues website, it is non possible to include all merchandises listed on the place page, It merely connect to the single merchandise classs, doing the client ‘s operation was complicated and it is non clear, for the first clip, I find the gems of the nexus, it is one of the many directories that I did non happen him.
These differences reflect the Blue Nile in on-line jewelry diamond gross revenues of absolute advantages, which is why it can discourage intense competition