Blue Nile Essay

interrogative sentence 1.What are some key featureors in baseb alone field selling? How do wild blue yonder Nile, Zales, and Tiffany compare on those dimensions?All the companies entangled in the ball field market want to oblige a with child(p) share of that market. And, the bigger the share, the society makes bigger revenue. It is actually interesting that all triple companies (even though they are in the same business) have antithetic approaches in taking market share. An important item is that the companies have a different nodeele. The market population is different.The first 2 paragraphs of the case study state a common concern in any industry do you reduce prices in gear up to fight with the competition? research is needed to see and predict the implications of discounts2008 is a good social class to analyze the situation from all aspects (and to see how our triad companies handled the meltdown). As customers tightened their belts and cut back on discretionary spending, high-cost purchases such as rhomb jewelry were often the first to be postponed. Responses are needed. Adjustments are needed.We asshole segregate the industry in devil parts wholesale and retail sales. Moreover, the price, selection and customization of services are other dimensions that differentiate the companies. no-good Nile earnings baseZales mall ground kiosks (teenagers) working-class mall shoppers fancier locations (upscale market) Tiffany high-end products blue-blooded Nile has an advantage due to lower location costs. These funds (that would be hardened for renting space) go off be allocated to additional inventory. This would in turn insinuate that the company would have a high selection. Also, having lower markup percentages lowers the price of the diamonds. Moreover, when grease ones palmsing from Blue Nile (besides having a low-pressure selling approach), you are besides not buying a secernate/ differentiate (in analogy with buying from Tiffa ny).It moldiness also be noted that Tiffany started its business in 1837 Zales in 1924 and, Blue Nile in 1999. This history (and all the aspects that the latter comes with) provides different advantages (competitive, brand, customers, types of customers.)A greater description of the manner in which the three companies are different and differentiate apiece other is provided in the answers to the following questions suspense 2.What do you destine of the fact that Blue Nile carries over 30,000 stones priced at $2,500 or higher while just about 60 % of the products sold from the Tiffany Web site are priced at virtually $200? Which of the two product categories is better suited to the strengths of the online channel?It must(prenominal) be behaven in consideration that Blue Nile is an internet based business. It has not choice but to provide its high priced items on the internet. In comparison, Tiffany also provides a shopping (in store) experience (something that Blue Nile does n ot have).In order to increase its market share, Tiffany provides lower priced items on the internet. It is true that the client does not have the in-shop experience, but he/she is buying a Tiffany item. More cultivation is needed, but it is my assumption that Tiffany is focusing a lot on the in-store experienceWhich of the two product categories is better suited to the strengths of the online channel?It depends.Blue Nile is only on online. Hence, it has no choice but to increase all the aspects/strengths of online purchasing.The Tiffanys online surgical incision is only a small aspect of the companys business. steady if a customer does not want to have (to purchase) the in-store Tiffany experience, he/she even-tempered has the possibility of having a Tiffany item. These type of customers are not the regular ones. Personally, if I do not have the funds purchase as healthy as travel and I would like to buy my lady something special(a), I would do an internet Tiffany purchase. My lady would be happy (affect and grateful)..because it is Tiffany.Question 3.Given that Tiffany stores have thrived with their focus on selling high-end jewelry, what do you think of the failure of Zales with its upscale scheme in 2006?New market, new challenges. iodin important aspect (from the perspective of the customer) is the brand association. Zales already had a name made for itself working-class clientele and teenagers (lower-end reputation). Once the brand is made, it is very hard to change the sensing of it. A lot of energy, period and money need to be allocated in order to change the nature of the brand.Tiffany already had a brand that was associated with high-end jewelry. Tiffany did not need to change its brand (or the perception of it).In order to fix the problem, the transition to promotional retailer (discounting inventory), Zales disjointed a considerable amount. veritable(a) though in the long unknot the fix was beneficial, it was an answer to a problem th at the company should not have. other problem that Zales had was that deliveries were not on time.Question 4.What do you think of Tiffanys decision to open smaller retail outlets, focusing on high-end products, to conk smaller affluent area in the United States?I accept that this move was beneficial for Tiffany. Having a strong brand, a world cognise brand, people know what to expect from the company. If a potential client wanted to have the Tiffany experience, the former was able to have it. It is true that the selection was not the same as in the companys flag store. However, having also the catalog, the smaller retail outlets could very easily have access to the full inventory. What the clients wants, this is what he/she will have.Also, as stated before, the Tiffany experience is essential to Tiffanys business. at that placefore, having more stores (even though the inventory is not full) (potential) clients may be drawn to come in and make a purchase.Question 5.Which of the three companies do you think was best structured to deal with the downturn in 2009?Tiffany.The market sector was appropriate for it (high-end). As the case study states As customers tightened their belts and cut back on discretionary spending, high-cost purchases such as diamond jewelry were often the first to be postponed. However, this is applicable to lower-income customers. The lower the income, the higher the chance that a client would not spend on jewelry.Even though the 2009 downturn affected everyone, the priorities of lower income customers shifted drastically. The higher income customers, (I am qualification the assumption), were not affected as much. Therefore, instead of buying a 10,000$ recoil/bracelet/etc, they could afford a 5,000$ purchase.Moreover, Tiffany had also its own manufacturing facilities. If the rough diamonds (after process) did not meet the desired standards, they were sold to third parties, ensuring additional revenue for the company.Question 6.What advice would you give to each of the three companies regarding their strategy and structure?All three companies were affected by the economic crisis. This is normal. They have to wait for the economic come-back.As stated in the answer of the first question, the three companies have different clientele, different products and different customer experience.Blue NileI was very impressed by how Blue Nile handled the 1.5 million purchase.Having an internet base company, it reduces certain costs. The 30 days money back guarantee is essential in order to gain (and attract) customers. The lower marked-ups also contribute to lower prices for the clients (thus, attracting even more).Blue Nile brand is already established. It should not have any strategy that could submit negatively the name that it made for itself.ZalesDue to its type of customers (lower and middle class), and to the economic problems, Zales has the most to loose. Moreover, its transit strategy was not appropriate (the reas ons were explained earlier). There was a commercial that stated Dont change horses in mid-stream. Even though adaptability to the environment is crucial in todays economic system, not knowing how to adapt, and change just for the sake of change, can be (and in Zales case was) very destructive. The Zales brand was already established. changing the products without hard work to change the brand, the company will loose stage clients are disoriented.TiffanyThe company is well established. The band is strong. People associate with the brand. They take pride saying that they purchase from Tiffanys or have goods from Tiffanys (this is one of the most important aspects). The (majority of the) clientele is more well-off (in comparison with that of the other companies).When buying from Tiffany, a customer does not only buy a good he/she also buys the experience and the brand.Tiffany should also involve higher-end items on their website. However, immense research on this must be done. The company does not want to dilute its brand by providing internet orders. If the brand is not touched by this strategy, then Tiffany should go through with it (by additive increase of item provided on the internet).All three companies should have a catalog, an internet site (that can receive orders), provide from time to time discounts. Yet, for any strategy (whatever it may be), the specific company should do extensive research in order to calculate the different impacts that a (potential) strategy might have on the company.