Blue Niles Case Study

Do you think that Amazon.com will succeed in selling this type of jewelry as Blue Nile did in selling expensive engagement rings?

 Competition between Blue Nile and Amazon.com will continue to increase. In your opinion, which one will win (visit their Web sites and see how they sell jewelry)?

In my opinion, Amazon will not be as successful in the area of diamond earrings as Blue Nile did in selling expensive engagement rings because the Blue Nile specializes in diamonds and was able to produce customized jewelry that they could give in-depth information about. While Amazon will continue to be much more successful due to the larger market place that offers just about anything that can be googled. The Blue Nile will continue to produce more customer satisfaction for the jewelry because it is there primary focus. The Blue Nile has more information for securities purposes and customers would prefer to purchase jewelry from a jewelry specialist who could answer their in-depth questions, rather than a company who just added jewelry as another product on their website.

Although, Amazon cannot compete to the quality of Jewelry services that the Blue Nile provides, Amazon will ultimately win the competition. It is one of the largest online retailers and has the capacity to offset any losses from the diamond earrings with the revenue from the many other products that it sale. Also, Amazon has the option to bundle the diamond earrings with other products as a gift and still make a profit. In my opinion Amazon will eventually acquire Blue Nile or they will establish some type of partnership, which will be beneficial to both companies.