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Essay Instructions: This case analysis provides an opportunity for students to demonstrate their abilities to think critically and to employ their understanding of strategic management and leadership concepts, models, and best practices. ?. The length of the assignment will be no more that 2000 words plus appendixes. Refer to the Power's Case Analysis Handbook for further explanation on how to undertake a case analysis. Bullet format and succinctness is encouraged... it is about ?substance? rather than ?form?.


1. How strong are the competitive forces confronting Blue Nile and other online retail jewelers? Which one of the five competitive forces is the strongest? Do a five-forces analysis to support your answer.

2. What key factors will determine a company?s success in the online jewelry business in the next 3-5 years?

3. What is Blue Nile?s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Blue Nile is taking? What type of competitive advantage is Blue Nile trying to achieve?

4. What do you like and dislike about Blue Nile?s business model?

5. What does a SWOT analysis of Blue Nile reveal about the overall attractiveness of its situation?

6. What is your appraisal of Blue Nile?s financial performance based on the data in case Exhibit 5? How well is the company doing financially? Is there evidence that Blue Nile?s strategy is working?what is the story of the numbers in case Exhibit 4? Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing the calculations needed to arrive at an analysis-based answer to your assessment of Blue Nile?s recent financial performance.

7. Does Blue Nile have adequate competitive strength to go head-to-head against its rivals? Do a weighted competitive strength assessment using the methodology presented in Table 4.4 on p. 123 of Chapter 4 to support your answer. Has Blue Nile built a sustainable competitive advantage in the online retail jewelry business? Why or why not?

8. What strategic issues and problems does Blue Nile management need to address?

9. What recommendations would you make to Blue Nile management to strengthen the company?s competitive position and future strategic and financial performance?

Essay Instructions: CASE ASSIGNMENT

Instructions

You are to perform an analysis of Blue Nile, Inc. Except for the data you need to conduct the industry comparisons, you do not need to perform additional external research to complete your case assignment.

Your case should be in the outline format given below and must not exceed six single-spaced and numbered pages inclusive of all tables, charts and diagrams (12 pt. font with one inch margins all around). Your cover page and the list of references are not included in the six-page limit. The cover page should include your name, course and section number. Your name should not appear anywhere else on the paper.

Case Outline

I. Industry Boundary Identify the specific industry you are analyzing
II. External environment Analysis
A. Identify and briefly describe three segments of the general environment and each of their current impact on the industry
1. ________________
2. ________________
3. ________________
B. Evaluate the five forces of competition for the industry
1. Threat of entry of new competitors is (high, moderate, low) ______________, because_________. The barriers to entry include ___________. (Note: the supporting reasons you give for your answers in 1 through 6 should be based on the material covered in lecture and presented in chapter 2 of your text).
2. Suppliers to the industry provide (identify the products/services provided by suppliers) ____________. They are (strong, moderate, weak) __________, because___________.
3. Those who buy the product of the industry are (identify the specific buyers of the industry’s products/services) ________________. They are (strong, moderate, weak) __________, because____________.
4. The substitute products are (identify specific substitute products/services) ____________. They are (strong, moderate, weak) ___________, because____________.
5. Competition in the industry is____________ (strong, moderate, weak) because___________.
6. Based on 1 to 5 above, the current profitability potential of the industry is ________ (strong, moderate, weak) because __________.
C. Draw a strategic group map of the industry (can be hand drawn and labeled)
D. Prepare an anticipated response profile for the top two competitors (not including the subject firm) in the industry. Be sure to include the future objectives, current strategy, assumptions, strengths and weaknesses, and the anticipated responses of each of the two competitors (see Figure 2.3).
E. Based on your analyses in A-D above, is the industry attractive? What are its prospects for above-average profitability? Support your answer.
III. Internal organization analysis
A. Perform a core competence analysis of the firm (see Table 3.5). Note that you will need an extra column to indicate the resource or capability you are evaluating. Does the firm have any core competencies that give it a competitive advantage? Which ones?
B. Draw a value chain of the firm (see Figure 3.3) and describe the primary and support activities of the firm (be as specific to the firm as possible).
C. Identify the company’s resource strengths and weaknesses and its external opportunities and threats (at least two of each):
1. What are the company’s strengths and resource capabilities?
2. What are the company’s weaknesses and resource deficiencies?
3. What are the company’s market opportunities?
4. What are the company’s external threats?
5. What does a SWOT analysis reveal about the current situation of the firm?
D. Perform the analyses in Tables 1 to 3 in Appendix A posted in Assignments on Blackboard. Include only the narratives for the year-to-year changes in the income statement (Table 1), the common-size income statement (Table 2) and the ratio analysis (Table 3) in this section of your case write-up. What does the financial analysis reveal about the firm’s financial situation vis á vis the industry? (Append Tables 1 to 3 to your paper; not included in the page limit.)
E. Based on your analysis in A-D above, does the firm have a competitive advantage relative to the other firms in its industry? If yes, on which core competence (ies) is (are) the advantage (s) based? If no, why not?
IV. Strategy Analysis
A. Identify and briefly describe the firm’s corporate-level strategy (ies) (e.g., vertical integration, growth, outsourcing, etc.)
B. Identify and briefly describe the firm’s business-level strategy (ies)
C. Identify and briefly describe the strategy for each functional area covered in the case (e.g., marketing, HR, production, etc.)
V. Strategic Issuea Analysis (you need to analyze two strategic issues)
A. Strategic Issue 1
1. State the strategic issue (make sure to use a question format). Discuss the issue making sure to give adequate support as to why you think this is a strategic issue.
2. Generate and evaluate at least two possible strategic alternative actions (see chapters 4, 6, 7 and 9 for alternative actions)
i. Identify strategic alternative 1??"be sure to discuss the strengths and weaknesses of the alternative relative to the strategic issue you have identified
ii. Identify strategic alternative 2??"be sure to discuss the strengths and weaknesses of the alternative relative to the strategic issue you have identified
iii. Identify strategic alternative 3, etc.
3. Make a recommendation by selecting the best alternative action(s) from those above. Be sure to discuss how your selected alternative(s) will resolve the issue.
4. Implementation Issues ??" what kinds of implementation issues will the company have to address in order to put your recommendation(s) into action (e.g., obtain additional capital, hire new employees, layoff employees, change leadership, develop a new strategy, etc.).
B. Strategic Issue 2
1. State the strategic issue (make sure to use a question format). Discuss the issue making sure to give adequate support as to why you think this is a strategic issue.
2. Generate and evaluate at least two possible strategic alternative actions (see chapters 4 and 6 for alternative actions)
i. Identify strategic alternative 1??"be sure to discuss the strengths and weaknesses of the alternative relative to the strategic issue you have identified
ii. Identify strategic alternative 2??"be sure to discuss the strengths and weaknesses of the alternative relative to the strategic issue you have identified
iii. Identify strategic alternative 3, etc.
3. Make a recommendation by selecting the best alternative action(s) from those above. Be sure to discuss how your selected alternative(s) will resolve the issue.
4. Implementation Issues ??" what kinds of implementation issues will the company have to address in order to put your recommendation(s) into action (e.g., obtain additional capital, hire new employees, layoff employees, change leadership, develop a new strategy, etc.).

As a reminder, poor writing will have an adverse impact on your grade. Edit your work. If you need assistance with your writing, please visit the University Writing Center. To make an appointment you may call the UWC at 909.869.5343 or visit them at www.csupomona.edu/~uwc.

Note ??" Meaning of grading symbols is as follows: 0 missing/incorrect; ?- weak/poor; ? good; ?+ very good; ?++ excellent

aThe strategic issues you identify should be those issues that if left unresolved will jeopardize the future viability of the firm. They derive from your analysis in the above sections. These issues should be stated in a question format (for example, How should J&J address the increase in the costs of raw material inputs?). If you can answer the strategic issue question with a yes or no, then the issue is not strategic in nature. You should identify these issues and discuss why they are so important. Remember that you and another analyst might have a different list of strategic issues. It is your job to argue effectively as to why the issues you have identified are truly strategic. Follow this with a discussion of the strategic alternatives that are available to the firm for addressing each issue. In generating alternatives, you should draw from the strategic alternatives we have covered in class and those in chapters 4, 6, 7 and 9 of your text. Evaluate each strategic alternative by discussing its advantages and disadvantages in relation to the subject firm. Select the best alternative action(s) and discuss how it will resolve the issue at hand. Your recommendation(s) should be well founded and should result in improving the company’s competitive position and its long-term financial performance



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Essay Instructions: This is NOT a formal paper. It will be just the "Appendix" of the case. Mainly listing/bullet point with few sentence explanations.

Pages:

1) BRIEF COMPANY HISTORY - Approx. 2 paragraphs
BRIEF INDUSTRY ANALYSIS - Approx 2 paragraphs

2) SWOT ANALYSIS - Bullet point form e.g. Strengths: - etc. - etc

3) KEY SUCCESS FACTORS - List the factors that condition success in the online/physical diamond retail environment. What factors especially pertain to Blue Nile? Few sentences explaining each.

4) PORTER'S FIVE FORCES - Indicate the threat level to Blue Nile. e.g. Threat of New Entrants=High and a few sentences explaining why.
INDUSTRY DRIVERS - List the drivers that effect the online/physical diamond retail market

5) COMPETITIVE STRENGTH ASSESSMENT - Where is Blue Nile positioned in relevance to key competitors?

6) FINANCIAL ANALYSIS - This requires approx. 2 paragraphs explaining Blue Nile's financial status and computing ratios in Excel. I will send a list of ratios that need to be computed. pgs. 279-82 is where this information will come from.

7) PROBLEMS - List the problems facing Blue Nile and a few sentences explaining each.
There are faxes for this order.

Essay Instructions: please read additional material and answer following questions:
1. how strong are the competitive forces confronting blue nile and other online retail jewelers?
2. what key factors will determine a company's success in the online jewelry business in the next 3 to 5 years.
3. what is blue nile's strategy?
There are faxes for this order.