Blue Nile is a retail chain jewelry shop brand. Mark Vadon founded the retail chain jewelry store brand in 1999. Today, we’ll discuss the SWOT analysis of Blue Nile; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Blue Nile
- Jewelry
- Diamonds
- Necklaces
- Earrings
- Lab-grown diamonds
- Diamond Jewelry
- Wedding rings
- Engagement rings
Parent Company of Blue Nile
- Signet Jewelers
Statistical facts and figures of Blue Nile
- Annual revenue: 566million USD (2021)
- Losses: 28.5 million USD
- Employees: 1000
- Network: 25stores
Competitors of Blue Nile
- Zales
- Jared
- James Allen
- Kay Jewelers
- Ritani
- Tiffany & Co
- Helzberg Diamonds
- Brillant Earth
The SWOT analysis of Blue Nile would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Blue Nile SWOT analysis as a business strategy analysis example company as follows;
Strengths of Blue Nile
Some of the main internal strengths in the Blue Nile SWOT analysis example company as business strategy analysis are as follows;
Large Network
Blue Nile has established a very large network of approximately 25 retail chain jewelry stores across the US. The large network of retail jewelry stores amplifies the company’s reach to approach the end consumers. They could physically visit the chain stores and try out the jewelry before purchasing it.
Diamonds Variety
Blue Nile has a very large and diverse jewelry portfolio. According to an estimate, Blue Nile offers a vast variety of approximately 33000 types of diamonds to customers. They range from casual diamonds to extremely rare in various sizes, colors, and categories.
No Inventory & Spacing Requirement
Blue Nile is running its business in the jewelry and diamond industry. They don’t need a lot of space for managing stock and inventory. Their jewelry items could easily fit into a very small space and the company doesn’t have to worry about their stock becoming stale and stagnant.
Recognized Brand
Blue Nile has established a strong market and brand reputation in the US market for providing high-quality jewelry to customers. A strong brand reputation helped the company to earn the trust and confidence of customers.
Seasonal Gifts Offers
Along with a wide range of diamonds and jewelry collection; Blue Nile also offers a great variety of seasonal gifts to the customers. It helps the company to improve the customer experience and increase brand loyalty.
Weaknesses of Blue Nile
Some of the main internal weaknesses in the Blue Nile SWOT analysis example company as business strategy analysis are as follows;
Limited Market Share & Losses
Blue Nile has a limited market share and the company is only operating its business in the US market. The continued losses have made it difficult for the jewelry chain store brand to maintain its position in the market.
Additional Services
While shopping for highly expensive and rare items like jewelry and diamonds; then customers want some type of additional services from the retail chain store. It could be in the form of security, insurance, special treatment, and others. Offering additional services would decrease the customers’ user experience.
Opportunities for Blue Nile
Some of the main available opportunities in the Blue Nile SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Blue Nile should expand its diamond and jewelry retail chain business in the global market. The Indian, Chinese, Southeast Asian, Middle Eastern, and European markets hold great growth potential; it would help the company to amplify its market reach, influence, sales, and revenue.
Portfolio Expansion
Along with expanding the market; Blue Nile should consider expanding its product portfolio by launching a new product line of gold and other rare elements. It would help the company to target new types of customers.
Marketing
Blue Nile should focus on running various types of marketing and advertisement campaigns on social and digital media platforms. The trend of online marketing has been increasing; a strong online presence would help the company strengthen its brand positioning.
Threats to Blue Nile
Some of the main potential threats in the Blue Nile SWOT analysis example company as business strategy analysis are as follows;
Competition
Blue Nile is facing tough competition from other jewelry brands like Ritani, Kay Jewelers, and Tiffany & co. They all have earned a strong marketing and branding position, and their market presence has made it difficult for the brand to maintain its market position and profitability.
Economic Crisis
Diamonds and Jewelry are luxury items and the customers market could easily survive and live without them. People have lost their jobs during the economic crisis and they have limited resources and earnings to manage routine expenses.
Conclusion: Blue Nile SWOT Analysis Example Company |SWOT Analysis of Blue Nile |Business Strategy Analysis
After an in-depth study of the swot analysis of Blue Nile; we have realized that Blue Nile is the world’s leading retail chain jewelry store company. If you are learning about Blue Nile SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; and external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
