CASE A - Blue Diamond

CASE A - Blue Diamond - CASE A Blue Diamond Katherine...

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CASE A – Blue Diamond Katherine Chlebek 1. What is Blue Diamond’s business model? Briefly elaborate on the components of this model. Note: A firm’s business model is the framework the firm uses to earn profits. To figure out a firm’s business model you need to figure out how, and where, profit is generated. The key word here is profit , a different concept than sales. Of course we have to have sales to generate a profit. 2. Does Blue Nile’s business model result in a winning strategy? Blue Nile’s business model involves selling high quality diamonds at low prices online. The first hurdle for them was to make the buyer feel comfortable buying a high ticket item that has many characteristics that could affect the products quality. They effectively alleviate the consumers concerns by providing them with information and guidance during their shopping experience. The consumer is then able to educate themselves about what determines a diamonds quality and value. They can then compare different stones to look at these differences and make informed decisions regarding size, weight, cut, color,
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CASE A - Blue Diamond - CASE A Blue Diamond Katherine...

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