Show all work and use your own words to answer the following questions:
1. What are some key success factors in diamond retailing? How do Blue Nile, Zales, and Tiffany compare on those dimensions?
2. What do you think of the fact that Blue Nile carries many stones priced at $2,500 or higher, whereas a large fraction of the products sold from the Tiffany website are priced at around $200? Which of the two product categories is better suited to the strengths of the online channel?
4. Given that Tiffany stores have thrived with their focus on selling high-end jewelry, what do you think caused the failure of Zales upscale strategy in 2006? What products should Zale focus on?
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