Seminar1_BlueNile

8/8/2019 Seminar1_BlueNile

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Seminar #1



Organisation Profile

R etailer of certifieddiamonds and jewellery since 1999.

Founded by Marc Vadon

Larger than next 3largest online jewellers combined:Internet Retailer ,

2006

R ewards &R ecognitions

Internet R etailerBest of the webcompany ,2007

Forbes favourite, 2000-2005

BizR ate.com Circle

of ExcellencePlatinum Award, since 2002

Best online jeweller KiplingersPersonal Finance, Nov 2006

18 November 2010 2Seminar #1



Strategic Vision

To offer high quality diamonds & fine jewellery atoutstanding price andto continue ourleadership in our corebusiness.

Objectives

To distribute all overEuropean and Asiancontinents

To effectively managefuture expansion

Continuedestablishment &

promotion of Blue Nilebrand

To continue to enhancecustomer experience




Business Strategy

Blue Nile A brand to

reckon with indiamonds &

fine jewellery

The highestquality

standards in theindustry

Comprehensiveeducation and

guidance

Unmatcheddiamond

selection andinteractive

search tools

Commitment toa superior

customerexperience




Porters Five ForcesThreat of substitutes EBay

Threat of new competitors Whiteflash.com

Sustainable competitive advantage Competitivepricing, Wide network of Suppliers

Bargaining power of buyers - Displaced decision-making

Bargaining power of suppliers - They do their owndiamond cutting and polishing, jewellery crafting and

distribution




Ethical Practicesy Ensure that gold & metals come from suppliers that meet

the highest human rights, social, and environmentalcriteria.

y Engage suppliers to influence the sourcing of goldproducts.y R esearch mining, refinement, and manufacturing practices

of gold that moves through the supply chain.y Give preference to suppliers that source gold from mines

that observe high standards of environmental stewardship.y Commit to increased gold sourcing from recycled and

secondary sources.y Measure and establish benchmarks with a goal of

continuous improvement.




Special Characteristics

LeanOperating

Costs

Supply ChainEfficiency

CompetitivePricing




Competitive Pricing

They are able to provide diamonds based on the customers preferenceDifferent 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



Lean Operating Costs Only 146 employees

133 f ll time + ontractors temporary personnel

Operations via combination of proprietary and licensedtechnologies

Use of red ndant internet carriers to minimise serviceinterr ptions

On-call team to respond to emergencies and technology iss es




Supply Chain EfficiencyBypassed markups of traditional layers of diamond wholesalers andbrokers

Display of leading diamond and gem suppliers product on web

Huge supplier network

More than ½ of total supply of high quality diamonds in US

Just In Time (JIT) inventory

Using suppliers as the 3rd party inventory holders




Educational Information &

Certification




Marketing Strategy

Increase BlueNile brandrecognition

Generateconsumer

traffic Acquirecustomers

Build loyalcustomer base

Promote repeatpurchases

Ads at webportals & searchengines sites




Order Processing

Orderplaced

Supplierships

diamond toBlue Nile

Sent toassembly

for setting &sizing

Inspection

Shipment tocustomer

Usually throughFedEx




Growth Strategy Price

Product mix

Customised Non-customised

Expansion of

product line

Expansion of

product line

Based on consumer preference for jewellery

Extent of online purchasing

Competitive landscape

GeographicalExpansion

GeographicalExpansion




Supplementary Strategiesy 30-day return policy

y Free shipping within US

y Appraisal stating the approximate retail replacement value of the item




Environment Scany Growth in US jewellery market

y Increase in number of online & offline retailers

y Brick & mortar retailers started websites to boost theirsales

y Men Most likely customers of online jewellery stores

y Blue Nile A guys best friend




Criteria Bluenile.com

Diamonds.com

WhiteFlash.com

Ice.com

JamesAllen.com

Established 1999 2000 2001 1998

R ange of Products

60,000 40,000 About 1000 300,000 55,000

Distinctfeature Competitivepricing - Trade-upprogram EMIoptions FinestCollection

Informationon website

Yes Yes Yes (videotutorials)

No Yes (3D Viewing)

Competitors




What could be doney Improve the collection of jewels

y 3-D view of diamonds

y Mechanism to identify the ring sizey Auction sales




T

hank You


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Seminar1_BlueNile