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Blue Nile is the online retailer of diamond rings in the US. Mission Blue Nile’s mission statement is to improve customers’ shopping experience by offering consumers high-quality jewelry and education so that customers can make informed, confident decisions. Most people are discouraged by the traditional jewelry shopping experience; the company’s objectives are to provide an excellent way to buy rings and fine jewelry. The company is considered to offer niche products; however, its position in the jewelry industry remains neither top-end retailer nor low-end of the market.
The situation for the Blue Nile over the last decade has been favorable; there has been an upwards trend since 2006. After the economic crisis in 2008, Blue Nile sales experienced a double-number growth in 2010 (Wheelen et al., 2018). The Blue Nile invests in online educational materials and tools that enable clients to control the jewelry shopping process (Wheelen et al., 2018). In the economic crisis, Blue Nile used opportunities to advance its technological capabilities.
The board of directors includes eight members; the Chairman of the Board is Mark Vadon. He is the co-founder of Blue Nile, being the head from the beginning of the company. The time board members serve in the Blue Nile is different; most of them were appointed in 2007 (Wheelen et al., 2018). Regarding top management, it consists of eleven members (Executives, n.d.). Most senior management has a background in e-commerce and international trade.
There are two strategic options: market development strategy and product development strategy. The latter involves a new product promotion, which is risky and requires high costs to penetrate the existing market. However, this can increase the target audience’s attention and become a popular item in society. Concerning market development strategy, it is suggested to open stores and develop marketing efforts. Therefore, the recommended approach is market development as it promotes the existing product to new sales markets.
Concerning implementation, the strategy can be adopted through brand promotion, merchandising. Entering an international market requires the creation of a new reliable distribution system. For expanding regionally, it is recommended to work with the target audience. The company should strive to increase the awareness of the product and the number of trial purchases to form a positive attitude towards the brand (Alkasim et al., 2018). For example, Blue Nile can offer new conditions, additional services and use more sustainable or expensive packaging.
The chosen strategy cannot be pinpointed regarding unit and area. As the plan is for a long-term perspective, the sales profit and changes in customer perception of the brand can be analyzed by reviewing internal and external factors. It includes such evaluation activities as comparing actual with expected numbers and re-evaluating actions regarding a particular business unit. It is assessed whether the strategy corresponds to the staff’s capabilities, allowing the existing structure to implement policies successfully.
References
Alkasim, S. B., Abdullah, H. H., Bohari, A. M., Abdullah, S. S., & Sallehddin, M. R. (2018). The mediating effect of cost leadership on the relationship between market penetration, market development, and firm performance. Journal of Business & Retail Management Research, 12(03), 190-200.
Executives. (n.d.). Blue Nile. 2021, Web.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2018). Strategic Management and Business Policy (15th ed.). Pearson.
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