WK 3 Group 2 Using the concept of Differences between business strategies and functional tactics, what do you learn about the Blue Nile that is important to strategy implementation for them?The Blue Nile is capable of carrying out functional tactics effectively due to how their business operates. The Blue Nile has a visualization of selling diamonds, which are only sold online while also saving the consumer 20-40% more than the average in-store consumer. Initially, it was formed to teach the customer and help them to understand the merchandises while boosting their self-confidence after their purchase. Due to its excellent customer satisfaction and company success, Blue Nile was awarded the best online company for customer service. Functional tactics are the everyday task that is carried out by the technical area: such as marketing, finance, production & operation, and R&D that gives the organization’s products and services. Using the concept of Functional Organizational Structure, what do you learn about the Blue Nile that is important to strategy implementation for them?Blue Nile’s marketing strengths is comprising of the use of technology that enhances consumer experiences. Their commitment to the process of buying a diamond is hassle-free as possible, while also being capable of capturing the market share during the recession. They also had invested in bringing together the perfect online technology that enhances the experience of the consumer. It allowed the customer to access the inventory over 70,000 diamonds and over 40 vendors worldwide. Using the concept of Balance of control/differentiation with coordination/integration, what do you learn about the Blue Nile that is important to strategy implementation for them?The Blue Nile employee development and retention are unpleasant; it is a company with 26 executives and 190 plus full-time employees. Their attention is on primarily on technology, not the talent development of the employees within the business. However, they are service oriented to the consumer; internally, the company itself is not favorable. Using the concept of Strategic Surveillance Control, what do you learn about the Blue Nile that is important to strategy implementation for them?The company, Blue Nile, has numerous risks when it comes to their strategies. They are e-commerce (online) based venture, which can most of the time be uncomfortable for the consumer because of it only sold online, that can only result in online images and not physically touching the product. Most retailers are comfortable and like to deal with retailers face to face; it’s reassuring feeling for the consumer when making a purchase. Also, purchasing from a sales representative gives them a comfortable and trusting with the company; this is a big deal, especially when consumers make big purchases.Tags: NoneReply Quote Mark as ReadThread:Blue Nile Case Study Group 2Post:RE: Blue Nile Case Study Group 2Author: Raymond VasquezPosted Date:May 23, 2019 2:27 PMStatus:Published Torisha,As Professor Trzo expressed yesterday upon return from break, we all view, think, and comprehend information differently. I see the just of the information but always neglect to see the finer details as you have done. I say this in regards to all four of your answers. For number one, it did not occur to me that functional tactics was a day to day tasking as Blue Nile had to work exceptionally hard at customer satisfaction, which was key to their functional tactic.For the second question, I do agree with you in the sense that Blue Nile was truly successful because of how they enhanced their customers experience to the fullest. Their proven guarantee and hassle-free service was paramount in cornering the market before the rest of the jewelry stores caught on to the online market. Even then Blue Nile was still at an advantage because they did not carry inventory as likely the brick and mortar stores did and had to. Regarding being able to touch, inspect and try on diamonds and jewelry, Blue Nile was still able to overcome the opposition with their reputation, quality, and of course discounted prices. However, for their organizational structure (according to the book), I believe they only had three branches, marketing, operations, and logistics.I also believe your answer to the third question answers the balance of control with coordination. Blue Nile’s technology approach combined with the high level of customer service was crucial to their success.For the last question, I am not sure I understand your approach to Strategic Surveillance Control. I understood their surveillance was directed to when sales were good and when their stock price was high as most businesses do. As you stated before about their up to date technology, they surely profiled/surveilled all customers and potential clients that visited their website. In doing so, Blue Nile’s day to day tasking was to make adjustments and updates based upon the guests visiting their website.Tags: NoneReply Quote Mark as ReadThread:Group 2 – #15 Blue NilePost:Group 2 – #15 Blue NileAuthor: Raymond VasquezPosted Date:May 22, 2019 9:11 PMStatus:Published Using the concept of Differences between business strategies and functional tactics, what do you learn about Blue Nile that is important to strategy implementation for them?Blue Nile developed a simple business strategy that applied many distinct functional tactics. The strategic direction Blue Nile used was websites for the online foreign and domestic diamond purchasers at a discount. The tactics applied was they were not a brick and mortar business, their diamonds were high quality and rare, they did not hold inventory or stock, and they allowed customers to build their own jewelry. These tactics enabled them to compete with the stronghold companies DaBeers, Tiffany, and Guild. Later in their success they applied more of a long-term business strategy in terms of utilizing FedEx as well as claiming a social/ethical responsibility to how they obtained their diamonds. Using the concept of Functional Organizational Structure, what do you learn about Blue Nile that is important to strategy implementation for them?Because Blue Nile only had 193 full time employees, they organized into few functional organizational structures; marketing, operations, and logistics. Marketing was likely the most important due to the fast evolution of technology, internet sites, and applications. The web designers and online customer service team had to work diligently to stay ahead and continue to improve customers online experience. Operations and logistics ensured Blue Nile’s customers received the best quality product with the least amount of difficulty. The company had its independent suppliers as wells as its own diamond experts who validated the diamonds and records. Although Blue Nile was unable to reach countries that lacked technology, they were successful in partnering with FedEx’s best in class shipping and international reach. Using the concept of Balance of control/differentiation with coordination/integration, what do you learn about Blue Nile that is important to strategy implementation for them?Since Blue Nile was not a brick and mortar business, their differentiation was not as relevant to its customers. Blue Nile’s dividing activities was their foreign markets and diamond suppliers, they did not have diamonds on hand which meant they needed to be purchased, inspected, and shipped expeditiously and securely. The company had to operate in a differentiation mode as there was no physical store; integration was not part of their strategy. As the online market began to grow in popularity Blue Nile adopted more competition from the big name and jewelry giants. Today, Blue Nile has established five brick and mortar showrooms and stands behind their original business process, “You should not pay a premium to own a high-quality diamond. Because of our disruptive business model, we pass the savings on to you.” Using the concept of Strategic Surveillance Control, what do you learn about Blue Nile that is important to strategy implementation for them?Blue Nile monitored a broad range of events inside and outside the firm which affected the course of its strategy. Blue Nile recognized its sales and numbers grew annually on events such as Valentine’s Day, Mother’s Day, Christmas, and New Year’s. Blue Nile also realized where it outpaced net sales growth while achieving a cost savings with regard to sourcing and selling. Blue Nile did not have any debt and received tax benefits from selling stock options. Today, Blue Nile claims to be the world’s largest online jeweler. A quick Google search shows they are among the top four, James Allen, White Flash, and Brian Gavin Diamonds were the top three. Blue Nile has evolved significantly, provide education guides and tutorials for its online customers, price matching, lifetime warranty, free shipping, and of course their original policies such as conflict free diamonds and free returns.
