Blue Nile

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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.

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