The recommended approach for the Blue Nile is a market development strategy. It requires not only expanding the trade domestically but also opening new areas worldwide and finding new partners. Even though the company has no issues relating to municipal law, every new market requires significant adjustments according to its law system and international law. Therefore, Blue Nile should consider legal issues when implementing its strategy. Before starting the expansion, the company needs to carefully think over the plan, analyze the market, and impact the business environment. Otherwise, entering new markets will be chaotic, and there will be more risks of failure.Click the button, and we will write you a custom essay from scratch for only $13.00 $11.05/page 322 academic experts available
Moreover, Terms of Service should be considered, ensuring that they are localized legally and translated into local languages. Shipping can cause lawsuits by dissatisfied customers worldwide, which is challenging to handle. The increased number of unsatisfied customers leads to damaging brand reputation and possible failure (Hamadamin & Singh, 2019). One of the recommendations is to use social media as a platform for advertising as the importance of the Internet increases in business. Consequently, to address complaints, negative feedback should be acknowledged as a mechanism that helps organizations quickly and cheaply change product quality, service style, and direction to meet customer needs (Hamadamin & Singh, 2019). If Blue Nile provides them with higher compensation than expected, they will remain loyal customers and respond positively to it.
The strategy incurs additional transaction costs associated with logistics. Duties on the import of products can make exports unwise from an economic point of view. Moreover, there is a possibility that many states will raise import taxes in the future, which will have a negative effect. This could further exacerbate the situation if companies have invested in expanding production (Wheelen et al., 2018). In the Blue Nile case, the organization should consider tax policies by inter-company agreements; the latter defines responsibilities regarding global transfer pricing rules.
To sum up, entering new markets is associated with monitoring the trends that exist in the chosen niche. As Blue Nile is an online retailer with premium goods such as diamond rings, it sets additional requirements for the business. The company should evaluate opportunities to expand the target audience, growth dynamics, and political and economic risks. The size of the selected niche affects the profit, determining whether costs will exceed revenue. Thus, the focus should be on the actual turnover, running a couple of trial small marketing campaigns beforehand.
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Hamadamin, Z. F., & Singh, U. S. (2019). Analyzing the main marketing strategies leading to customer satisfaction. International Journal of Supply Chain Management, 8(1), 113-123.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2018). Strategic Management and Business Policy (15th ed.). Pearson.