Blue Nile Inc.

Case Study # 113935

Business > Companies
Business > Industries

Blue Nile Inc.

A discussion on the role of marketing in improving the Blue Nile Inc. company's sales and profitability.

2,050 words () | 4 sources | MLA | 2008 Philippines

Paper Summary:

The paper discusses how the Blue Nile company offers high-quality merchandise at attractive prices. The paper looks at Blue Nile's customer service and customer education, the company's marketing strategy and the fulfillment and after-sales service. The paper then points out Blue Nile's limited expansion and analyzes the fine jewelry industry and competition as well as Blue Nile's profitability. In addition, the paper makes recommendations for the company to increase sales by a combination of product line expansion, entering new markets, and a more aggressive marketing program.

From the Paper:

"Blue Nile Inc., considered to be the world's biggest online retailer of certified diamonds and fine jewelry, seems to have cornered the online diamond market. The company, with sales of $169.2 million in 2005, became a force to reckon with among jewelry e-tailers, which collectively sold $2.3 billion in the same year. It has, from 2001, seen a sales growth rate of 39% and a profit of $13.1 million (a turnaround from losses of $7.4 million just 5 years before), the company became a force to reckon with in online jewelry retailers, which collectively sold $340 million in the same year. In 2005, Blue Niles sales mix was largely skewed towards engagement rings, which comprised 72% of its total revenues. Diamond jewelry--other than engagement rings--makes up a bulk of the remaining sales. The company's management believes that it owns more than 50% of the total online engagement rings market."

Sample of Sources Used:

Blue Nile Annual Report. Retrieved on 26 April 2008.<http://media.corporate-ir.net/media_files/irol/17/177247/AR/Annual_Report_BlueNile_2007.pdf>
Blue Nile Balance Sheet. Reuters.Com. Retrieved on 26 April 2008.<http://stocks.us.reuters.com/stocks/balanceSheet.asp?WTmodLOC=C2-FindOut-3-BalanceSheet>
Blue Nile Comparative Ratios. Reuters.Com. Retrieved on 26 April 2008.<http://stocks.us.reuters.com/stocks/ratios.asp?rpc=66&symbol=NILE.O>
Blue Nile Income Statement. Reuters.Com. Retrieved on 26 April 2008. <http://stocks.us.reuters.com/stocks/incomeStatement.asp?period=A>