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 about 30,000 stones priced at $2,500 or higher whereas almost 60 percent of the products sold from the Tiffany website are priced around $200? Which of the two product categories is better suited to the online channel?
3. What do you think of Tiffany’s decision to not sell diamonds online?
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 Zales focus on?
5. Which of the three companies do you think was best structured to deal with weak economic times?
6. What advice would you give to each of the three companies regarding their strategy and structure?