The Nile water will be supplemented by groundwater extraction from a number of desert oases, allowing a total of a million new acres to be farmed. Within a year, the two countries re-negotiated the 1929 agreement and developed the 1959 Agreement between the Republic of the Sudan and the United Arab Republic. Strategic issue I The major strategic issues for Blue Nile Company are to enhance and innovate the customer experience through empowering them with knowledge and god customer support through the purchasing process. Do a five-forces analysis to support your answer. Despite the recession period that affected even the competitors, Blue Nile rebounded in 2010 and made net sales increase of 10% from the previous year. The pricing strategies have been changed as well in light of the recession that hit the U. Strategy 2011 Blue Nile Inc.
The other competitor is Whiteflash. We aim to offer customers their desired piece of jewelry at an affordable price. How strong are the competitive forces confronting Blue Nile and other online retail jewelers? In addition to serving the U. And most parts of the globe hence making the competition to be stiffer with people going for the cheapest option that they can get around them. The new entrants of the traditional Jewelry Industry will need a large amount of capital for inventory, established brands to attract customers, and a strong sales team.
The most ironic factor is that jewels are traditional brought from jewelry shops and the customers obviously have firsthand check before buying the jewels, but the Blue Nile is an online company and it eventually does not have any physical shop. The strongest competitive force in my opinion would be rivalry with bargaining power of buyers as a close second. It is very difficult to make out any inclusions just based on these two pictures! The Western countries and the World Bank had originally offered technical and financial support for the dam, but environmental and socio-economic concerns led to the withdrawal of this support. Egypt is desperately trying to meet its food needs through dramatically expanding the number of acres under irrigation, and has started two new, major irrigation projects. Being that the economy is not very strong right now, recommendation for an overall low cost strategy is one that should be employed. The competitive force from new entrants Is moderate to weak. Given the high price of the stones, the cost of holding them in inventory is proportionally higher.
Why Blue Nile diamonds is so successful is that is understands its customers. Conclude as to the strength or weakness of each force as well as the attractiveness of the industry overall. However, the Sudan does not appear to be sufficiently stable economically or politically to develop its water potential on the Nile, and its international isolation virtually rules out international development aid. Your average buyer will not be clued up on diamonds and not actually being able to see what they are buying will put a lot of people off. In Blue Nile cases, the main reason may be lower inventory holding costs savings safety stock, the company can provide customers with a wide range of product variety and product offerings. As Blue Nile simply uploads the data pertaining to diamonds from their vendors they are merely presenting them as their own. Words: 2004 - Pages: 9.
Some of the information is great, some completely unnecessary and some written as if everyone is a diamond expert. This will also mean additional capital will be required for the setting up of such a liaison department. The new entrants of the traditional jewelry industry will need a large amount of capital for inventory, established brands to attract customers, and a strong sales team. They have highlighted the idea of seeing, touching and comparing diamonds that is exclusively possible in a store. Other riparians were not included in this agreement. Basically, only the diamond supplier and the ring setting contractor will get to see the diamond before you receive it! With such a large and competitive industry Blue Nile is able to limit costs while offering high quality stones along with providing detailed product information.
Bombay: Oxford University Press, 1994 165. One service that they provide that is unique from their competitors is their diamond trade-up policy. Created by A, B and C. The challenge with this would be that the profit margins will have to be lower since the distributors will also need to have their share. Consumers want the best quality product at the best price and as fast as possible. More recent customer feedback on Blue Nile has been poor as well, this comment was taken from a recent customer who contacted my site I have purchased from them a lot in the past.
The company did not have to buy these diamonds from the suppliers until the client placed an order hence avoiding the burden of having to carry large consignments. Of late, there has been a largely restricted trend in the movement of diamond particularly from countries in Africa and other developing nations. Words: 1882 - Pages: 8. The new entrants of the traditional jewelry industry will need a large amount of capital for inventory, established brands to attract customers, and a strong sales team. It is headquartered in Forest Hills, New York and employs 12,532 people.
Executive Summary The purpose of this case study is to measure the success of Blue Nile against Tiffany and Zales success in diamond retailing by comparing retail strategies and structures. What type of competitive advantage is Blue Nile trying to achieve? The first factor is the political, regulatory and legal factors. The construction of the dam would create a reservoir extending 150 km into the Sudan, submerging the old town of Halfa and displacing 50,000 people. The substitutes would be to go for a lower grade of diamond, some would also go for the white gold, natural blue sapphire also comes in handy as a substitute, ruby, emerald and alexandrite are as well substitute products that have of late competed against diamond Sam Abbay, 2012. The competitive forces that are confronting Bule Nile and other online retail jewelers are strong.
This is in light of the realization that the trade in the same was used in fuelling several wars, a case in hand is the blood diamond of Liberia that it is claimed Charles Taylor used to finance the atrocities. The new agreement set Egypt's share of Nile waters at 55. Quick, simple and blissfully uneventful, it was now time for strong drink. This shows relatively no threat of creditors taking over the company. Do a five-forces analysis to support your answer. The competitive forces confronting Blue Nile and its rival jewelers are very intense and competitive because online jewelers are very competitive. Indeed, the Ethiopian Parliament only approved the construction of two small hydropower dams on the Blue Nile in June 1996.
Please see the excel worksheet for graphs and calculations. Words: 305 - Pages: 2. They have excellent customer service by providing free shipping, an appraisal of the diamond, and non-customized orders receive 30 days to return the purchase after delivery. By analyzing the main competitive forces, weakness was pointed out. The competition among the competing sellers in the industry is strong. There are pros and cons to this as yes you are getting an exclusive stone but on the other hand you cannot compare the price Blue Nile are charging with any other retailer.