Key drivers of customer purchases in diamond retailing include quality and range of products offered, reputation, professional advice offered, and customer perception and emotional bonds, including a positive buying experience and customer service. Success is also dependent upon obtaining economies of scale through such avenues as preferential access to resources, an effective supply chain and marketing strategy, as well as an ability to control facilities and operating costs and manage inventory effectively.
Blue Nile’s, Zales’, and Tiffany’s key success factors in dealing with customers are related to …show more content…
3. Given that Tiffany stores have thrived with their focus on selling high-end jewelry, what do you think of the failure of Zales with its upscale strategy in 2006? Tiffany’s upscale strategy, affluent customer base, and business model evolved over a period of more than 100 years, and changes such as adding an online distribution channel were made gradually and as an extension of Tiffany’s current business practices. Zales, on the other hand, handled a strategic shift to upscale retailing within a time period of one year and failed drastically as shown by the following chain of events.
Feeling the pressure from discounters Wal-Mart and Costco, Zales decided to give up its long-time strategy of selling