Five-Force Analysis The rivalry among existing competitors in an industry is the strongest of the five forces, the competition between Blue Bile and its rivals is no exception. The primary competitors for Blue Nile involve the online market place including places like Diamonds.com, Whiteflash.com, and JamesAllen.com. The secondary competitors of Blue Nile and their online jeweler include brick-and-mortar jewelers or local shops and also large chains like Zale’s, Sterling, Tiffany & Co., and Helzberg. Needless to say, there are not just a few rival competitors in the jewelry industry. Blue Nile has created its own advantages like product selection, quality, price, customer service and support, website features, and speedy delivery. There are many new resources and abilities now due to the internet for potential new entrants. Blue Nile took advantage of these resources when they started their company completely on the internet. At this point, there are not many requirements if someone wants to start up an online jewelry retailer, but Blue Nile does have a strong foothold in the market as long as they can continue to evolve and provide value to its customers. The competition from substitute for jewelry retailers is not a very significant threat. There are synthetic diamonds, manmade jewels, and many jewelry alternatives, but they are not very viable. Engagement rings and wedding bands have a very significant cost difference if something “fake” is purchased. Blue Nile concentrates a huge portion of their business to engagement and wedding rings; the threat of “fake” diamonds is to be irrelevant. “You get what you pay for”, comes to mind when considering substitutes. There is definitely bargaining power in this industry since there are so many competing sources to buy jewelry from. It is very easy to go to a locally owned jewelry store, or go to the mall and find a big chain store. Now days, it is even just as easy to find the next website. Blue Nile does offer a significant amount of quality at low leading prices which enables them to satisfy customers even over the established name brand stores that have been around for a long time. Blue Nile has a very strong relationship with its suppliers. This gives them major advantages as an online retailer. Their relationship with their suppliers gives them the ability to display their products the US and international customers. They also are able to have the ordered diamond next day from the supplier. Which is also an advantage for Blue Nile in terms on financial independence because they don’t have to keep that diamond in inventory, it has a quick turnaround.
Factors Determining Success Key success factors are essentially the skills and attributes that a firm in a particular industry must have for success. There are a few factors noted that will determine a company’s success in the online jewelry business. Not all jewelers engage in e-commerce, this is a major factor of success for Blue Nile. As technology continues to increase and change, the need for e-commerce capabilities increases majorly for the company. While they have the capabilities for their customers to see exact specs of the diamond, information on the “five C’s”, fast-acting customer service, and so on, the website must stay up-to-date and user friendly as technology changes every day. The single most important key success factor for both forms of business is quality know-how. In almost all cases, no consumer wants to purchase expensive jewelry that has flaws. If a firm wants to be successful in selling jewelry, online or in-store, the business will absolutely have to insure quality in every single product that is purchased. Blue Nile customers with questions could call a prominently displayed toll-free number or send an email and most calls to the Blue Nile call center are answered within 10 seconds by highly trained professionals. Even beyond the idea of quality control, Blue Nile release mobile
