Case 13 Blue Nile, Inc - Stuck in the Middle” of the Diamond Engagement Ring

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Case 13 Blue Nile, Inc.; “Stuck in the Middle” of the Diamond Engagement Ring Market
Synopsis
Blue Nile, the largest online supplier of diamond rings for engagements, was founded
with the sole purpose of making the selection of rings for engagement easier. Instead than relying
on face-to-face customer service, as is the case with most traditional jewelry merchants, this site
only offers online assistance. The engagement diamond ring market has 'ensnared' Blue Nile,
which is trying to become 'the Tiffany for the future'. In terms of retail jewels, it doesn't come
close to Tiffany & Co. or DeBeers. It does not compete with Amazon or Overstock.com at the
low end of the market. Competitors at the top and bottom of the market are trying to get into
Blue Nile's core specialization as Blue Nile grows its share of the entire business (Hoffman 311).
It's not an easy errand for an online retailer to climb the stepping stool to become a top precious
diamond retailer because "the middle is the most extraordinarily horrible area to be".
Problem Statement
There are several issues with this organization but the comprehensive evaluation of the
proposed information reveals that the organization's senior management is dealing with major
difficulties in terms of the organization's growth and the expansion of its profits and total
revenues. The supportability and development of the client segment of the company in relation to

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the opposition and rivalry; that the business faces while functioning in the objective business
sectors are the two most fundamental difficulties for the organization's administration
(Researcher 1). The improvement of the business in the business sectors where the association
operates is another important problem for the management of the organization. Outside of the
United States, Blue Nile has absolutely little presence and only sells a limited amount of things
in the United Kingdom and Canada. So, how could Blue Nile Inc increase customer awareness
and confidence while purchasing high-end luxury accessories over the internet? One of the key
issues with online advertising is keeping up with and pushing customers to the site, which will be
therefore another Blue Nile's major challenge as it enters the twenty-first century in terms of how
to attract new customers (Studies n.p.).
Market Competitors and Strategic Direction
The contextual analysis also reveals that the market and circulation lines in the firm are
exceedingly entangled, and that there are several sorts of administrators in the business sectors
where the company operates. Tiffany& Co, DeBeers, and Guild goldsmiths are a few of the
organization's major competitors in the many goal business sectors, and their forms of quality
and jobs in the business sectors are also diverse. Retail stores, brand stores, internet businesses
like eBay or Amazon, and traditional shops and superstores are also some of the organization’s
competitors. The business research also reveals that the risk of new replacements is limited due
to the large investments and structure required to do so (CASEISM n.p.).
As a result, the business and market analysis of the company, as well as the investigation of
the issues and challenges; that the company's management is facing in terms of supporting the
company's client base and growing its revenues and operating margins, reveal that the company's