Analysis of Blue Nile's 'Stuck in the Middle' Case Study

This case study analyzes Blue Nile, Inc., the largest online diamond ring retailer, and its challenges in the competitive diamond engagement ring market. The study examines Blue Nile's strategic position, market competitors like Tiffany & Co. and DeBeers, and the company's struggle to balance premium and low-end market pressures. It identifies key issues such as maintaining customer awareness, expanding market reach, and the complexities of online luxury retail. The case explores potential solutions, including expanding product offerings and geographical presence, to reduce market dependence and enhance competitiveness. The analysis emphasizes the importance of strategic direction and the need for clear implementation plans to overcome challenges and achieve sustainable growth in the diamond market. The study concludes with a 'what, why, how, and who' framework to ensure investors understand the strategic plan and resource allocation needed for success.

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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

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senior management has two viable options to pursue as the company's future methodology and
procedures. Both of the options for the association's top management are described below.
 The most realistic solution for the organization's top management is to expand the
customer base and market in which it operates by expanding the organization's
contributions.
 The second practical option for the association's senior management is to expand the
company's business in terms of the locations and business sectors in which it operates in
order to reduce the company's dependency on a single market in terms of the competition
it faces while working.
Importance of Strategic Direction
The acceptance and implementation of the main suggestions within the business culture
and tasks of the organization would enable the business and senior management of the
organization to broaden the scope of the organization's target market in the business sectors,
allowing them to compete more forcefully with competitors and adversaries. This is due to the
fact that the organization's long contributions to the business world would attract more customers
to the substance. The acceptance and implementation of the second idea by the organization's top
management would allow the company to reduce its reliance on a single market in terms of
earnings, benefits, and a slice of the pie, and so the risks and challenges for the company would
be reduced.
Concluding Remarks
The contextual report's in-depth research reveals that the firm has a lot of competition. In
addition, the nature of the item that these organizations propose to the clients and the growth in

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the strategies that these associations deal with the customers in the goal business sectors
determine the level of competition in the business. The luxury products that the company
supplies to clients in the goal business sectors are extravagance items, and the monetary value of
the items is less significant than the innovative and exciting plans that go together with the nature
of the adornments and jewels. The proposal also includes the elements: “what, why, how, and
who”. This is crucial since it allows for the association. Investors should clearly understand what
has to be done, how it needs to be done, who the key players are, and how it will be carried out.
Furthermore, the amount of time necessary must be specified. This enables the partner to grasp
and determine the amount of time and resources required to properly implement the agreement.

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Works Cited
CASEISM. "BLUE NILE INC. STUCK IN THE MIDDLE OF THE DIAMOND
ENGAGEMENT RING MARKET Case Solution & Answer." CASEISM; Case Study
Analysis Solutions (2009): n.p.
Hoffman, Alan. "Blue Nile, Inc: 'Stuck in the Middle' of the Diamond Engagement Ring
Market." Strategy and General Management (2011): 311-137.
Researcher, bartleby. "Problem Faced by Blue Nile Company." bartleby Research (n.d.): 1-5.
Studies, Harvard Case. "Blue Nile Inc Stuck In The Middle Of The Diamond Engagement Ring
Market Harvard Case Study Solution & Online Case Analysis." CaseRighted (n.d.): n.p.