Further they explain in detail their commitment to a high level of customer service and support as well as fulfillment operations strategy. (pg. 9)you are correct that these are all important aspects, but if you have to pick the PRIMARY one it would have to be operational excellence. 4/5
2. What business risks does Blue Nile face that may threaten its ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? Are some of the risks faced by Blue Nile difficult to reduce through control activities?
Blue Niles does a good job spelling out the risks to stockholders. Some of the risks listed are not specific to just Blue Nile but to many other companies. Those include:
• Limited operating history making it hard to forecast net sales and plan expenses
• Quarterly financial results fluctuate for a variety of reasons, which may lead to volatility in the stock …show more content…
It seems obvious that in four years time Blue Nile would have been able to find employees that would have the expertise and knowledge to address this situation. It does seem to be a bit bigger issue for internet companies in general, at least from what I understand…
Other risks such as inventory management, seasonal fluctuations, declining sales, increasing competition are risks all companies face. I would expect management has put proper procedures in place to address these risks.
However, what I would like to focus on is the risks that are unique to Blue Nile and other e-commerce companies. In 2005, purchasing diamonds via the internet was a huge risk. Not being able to see and touch the merchandise was considered foolish at the time. Blue Nile focused on their expertise, more competitively priced merchandise and quality of the product which overcame this objection. Now, you can purchase just about everything via the internet. From diamonds to fresh food to lunches prepared in Michigan and delivered just about anywhere in the