Blue Nile Sparkles

1
Blue Nile Sparkles

• MGS 5040
• Wladimir Romain

2
HISTORY

• Started out as Rockshop.com in March 1999
• In May 1999, purchased Williams and Son( Internet
  Diamond) A Seattle Jeweler with a web site
• In Nov 1999 the company launched the Blue Nile
  brand and change its name to Blue Nile Inc.

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Milestones

• May 2004 , Blue Nile went public at 20, and
  jumped to 28 in the first day. ( 38 pop)
• In June 2007, Blue Nile sold the biggest item in
  Internet history, a 1.5 million single diamond.
  
• Blue Nile has cut out several supply-side layers
  of middlemen and instead deals directly with
  wholesale diamond owners and jewelry
  manufacturers

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SWOT ANALYSIS

• Strength
• Weakness
• Opportunity
• Threats

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STRENGTH

• LOW COST ( NO MIDDLEMEN OR SALES CLERK)
• CUSTOMIZE
• SUPPLY CHAIN MANAGEMENT
• NOT IN A HIGH PRESSURE ENVIROMENT
• PROVIDES INDEPENDENT QUALITY RATING

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WEAKNESS

• LOW GROSS MARGIN
• LACK OF EMOTIONAL IMPACT
• WAITING FOR PACKAGE TO ARRIVE

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OPPORTUNITY

• Transforming the high-end jewelry business
• To hit 1 billion in sales in 2012

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THREATS

• ZALES
• TIFFANYS
• ICE.COM
• DIAMOND.COM
• AMAZON.COM
• DeBEERS (controls 2/3 of the worlds market)