Blue Nile found a way to create a new paradigm-people usually want to walk into a jewelry store and see the diamond.

1.  Blue Nile's strategy for success in the marketplace is to increase there future growth by increasing their brand awareness, focus on the customer experiences, increase supply chain effectiveness, improve operational effectiveness, expand product offerings, and to expand into international markets.  Blue Niles relies both on customer intimacy and product leadership. Blue Niles summarizes what they bring to there customer With in Form 10-K with the company overview.

"Overview

      Blue Nile, Inc. (“Blue Nile,” “the Company,” “we,” “our,” and “us”) is a leading online retailer of high quality diamonds and fine jewelry. We have built a well respected consumer brand by employing an informative sales process that empowers our customers while offering a broad selection of high quality jewelry at competitive prices. Our primary web site at www.bluenile.com showcases over 55,000 independently certified diamonds and more than 1,000 styles of fine jewelry, including rings, wedding bands, earrings, necklaces, pendants, bracelets and watches. Blue Nile specializes in the customization of diamond jewelry with our “Build Your Own tm ” feature that offers customers the ability to customize diamond rings, pendants and earrings. We have developed an efficient online cost structure and a unique supply solution that eliminates traditional layers of diamond wholesalers and brokers, which allows us to generally purchase most of our product offerings at lower prices by avoiding mark-ups imposed by those intermediaries. Our supply solution generally enables us to purchase only those diamonds that our customers have ordered. As a result, we are able to minimize the costs associated with carrying diamond inventory and limit our risk of potential mark-downs. "    United State Security and Exchange Commission