Hello All!
Blue Nile aims to sell high-end jewelry while making sure their customers
plan to be successful, they had to consider internal and external factors.
One internal factor was the decision to be entirely web-based. Foregoing the traditional brick-and-mortar stores unlike their competitors. In doing this, they saved on overhead costs. Another internal factor was choosing to go with the just in time inventory approach which ensures their carrying costs are low as high-priced stones will not be sitting waiting to be bought.
Externally, one of the biggest factors considered was the complexity of the diamond trade and the risks associated with obtaining the precious gems as many of them come from mines in underdeveloped countries where corruption and lawlessness are abound. While the entire industry faces the same risk, it is not something Blue Nile could overlook. Additionally, they had to consider their competition and how to stay ahead while keeping up with customer demand. To manage this, they partnered with over 4o suppliers.
Reference:
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic Management and Business Policy (15th ed.). Pearson Education (US). https:ffffmbsdirect.vitalsource.comffbooksff9780134538679