CASE 1: EC APPLICATION: HOW BLUE NILE INC. IS CHANGING THE
JEWELRY INDUSTRY
Questions
1. Using the classification of EC how would you classify the Blue Nile’s business?
Blue Nile is a typical business-to-customer (B2C) model e-commerce company. The Blue Nile is also the world’s largest online diamond sales company. The Blue Nile does not have any solid stores. But they had sold out thousands of diamonds just rely on online marketing. Blue Nile Inc. reported a 30 percent growth from 2003 to 2004, showing a need for items to be offered not only in stores but also online. So their chance to do an online shop is the right choice.
2. In what ways is the company changing its industry?
Blue Nile Inc. has been switching its shop from a physical store to an online store. Using the B2C EC model to knock out expensive stores and intermediaries and then slash prices — they captured high market share in a short space of time, making a considerable profit by inducing more people to buy online. The company has a mobile website for iPhone and Android users, which allows customers to compare prices and quality while they are in service.
3. What are the critical success factors of the company?
The company's critical success factors include low pricing of products, quality information and an excellent return policy.
4. Research Blue Nile’s affiliate marketing programs. Write a report. Include how this pro-gram helps the Blue Nile?
Affiliate marketing program through LinkShare is helping the Blue Nile to become more famous. As the online marketing sector continues to evolve rapidly, advertisers, publishers, and agencies turn to LinkShare for technological innovation.
5. Competition between the Blue Nile and Amazon. com will continue to increase. In your opinion, which one will win? (Visit their websites and see how they sell jewelry.)
Amazon.com will win, in my view. Because Amazon.com is a comprehensive online shop, but bulenile.com only sells jewelry, Amazon.com has more customer base and other goods are cheaper and useful in comparison with jewelry so more customers would like to choose Amazon, com.
6. Follow the performance of Blue Nile’s stock since 2003 (symbol: NILE, go to money.cnn. com). Compare it to the performance of the market average. What is your conclusion?
Nile stock was at its highest in the year 2008 until 2016 when this company was marked as potentially delisted and may not be trading actively. So market performance on the last day of stock exchange averages 40.71$. My conclusion, Blue Nile was the first company to go for business and it succeeds but it has failed to engage more users than Americans in this era
7. Find the payment options at the Blue Nile when you shop there.
The payment options at the Blue Nile when you shop there are as follows :
• Credit cards: Visa, MasterCard, American Express, China UnionPay, Discover, Diners The club, or JCB card.
• Bank wire: Arrange payment through your bank and receive a 1.5% discount. Bank wire payments are accepted on orders of $750 or more.
• Other payment methods: Blue Nile Credit Card, PayPal, Alipay, or WeChat Pay.
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