Read the following discussion and give response about it: For Blue Nile to be successful in the

Fantastic news! We've Found the answer you've been seeking!

Question:

Read the following discussion and give response about it:

For Blue Nile to be successful in the diamond retailing market would be their strategy to have a lower markup of around 20% then that of their competitors whose markup is normally higher at 50%. As with the information provided for Zara-Rapid Fire Fulfillment, Blue Nile has a small inventory which would allow sale at market price. The comparison of Blue Nile and that of Zales and Tiffany would be the supply chain value of its customer, no matter what process they are looking to acquire. They are all looking to fulfill its customers request through value and cost.

For Blue Nile to have such a higher price, is due to the quality of its diamonds and that they are much valuable than those of its competitors By offering a money-back guarantee to customers with online purchasing, is how Blue Nile won customers over. The use of the internet and online purchasing seems to be more suited with Blue Nile then with Tiffany and Zales. By offering a range of diamonds on demand allows for low inventory costs for storage and customers are provided the choice to shop online.

Blue Nile will be best structured to deal with weak economic times due to their low inventory and high value on its product. “Distribution networks that ship directly to the customer are better suited for a large variety of high-value products that have low and uncertain demand”. As with Tiffany and Zales, they both hold a high inventory storage that would be hard to sale during a weak economic time, with spending cut backs from customers.

The advice for the three companies regarding strategy and structure For Blue Nile and Zales, I would advise that they stay on the path they are on now. The reduction of staff, reduced inventory and the closing of over one hundred stores helped the company see a profitable gain 2012 for Zales. Blue Nile understands it market and knows that the less they have in inventory, will reduce the expenses for just one warehouse. If they were to stay on this track, they might see an even bigger profit. Tiffany has been in the business for over 130 years, they have a great strategy set in place with its own manufacturing facilities in the US and outsourcing another.