Threats for Blue Nile
Competitors – One of the threats for Blue Nile is its competitors. Blue Nile has competitors other than the major companies that specialize in jewelry that offer in store and online purchases. Those competitors include DeBeers, which owns 40% of the world’s diamonds. They offer the same services as Blue Nile using the internet. Another competitor is Tiffany & Co.. Tiffany & Co. offers online shopping as well as in store. What Tiffany’s has that Blue Nile does not is the iconic Tiffany blue box that the jewelry comes in. One other competitor of Blue Nile’s is Guild Jewelers. Guild does not have online shopping but they are a competitor because they have a local relationship with their potential clientele.
New entrants – There is always a threat of new companies coming into the industry. Blue Nile has established a good reputation that can prevent the new entrants from being too threating.
Demographic – Although the average marrying age rising may indicate a larger budget, it could also become a threat to the company. The age rising can indicate that marriage is becoming unpopular or an outdated event.
Social – The internet is a wonderful tool until it is utilized by the wrong person. By only offering merchandise to be purchased through an online website this could cause a threat to the consumers’ personal information if fraudulent activities were to take place.
Global – Blue Nile offers its services to other countries through the internet as well. Since other countries are not as advanced as the United States this becomes a threat to Blue Nile. Another threat is the delivery of the products. Even though Blue Nile uses only one mail carrier, FedEx, there is still the opportunity of the item purchased getting lost or not making it to the customer.
Political/Legal and Economic Environment of the Jewelry Industry
The jewelry industry sells bridal jewelry, watches, gems, and other exquisite items. “The major US companies include Sterling Jewelers and Zale, as well as Tiffany; other industry leaders include the retail operations of Chow Tai Fook Group (China), Christ (Germany), and Richemont (Switzerland)” (Jewelry Stores Industry). Jewelry is an expensive item that is often bought on a special occasion. It can be over priced depending on the company’s needs. “The combined annual revenue for the US jewelry retailers is about $35 billion”(Jewelry Stores Industry).
References
Jewelry Stores Industry Profile. (n.d.). Retrieved August 22, 2015, from
http://www.firstresearch.com/industry-research/Jewelry-Stores.html
