The diamond industry has built its enduring benefit by being present in major countries worldwide with a homogeneous offer. In global industries, competition in a country depends on the competition taking place in another country; the competitive advantages are transferable from one country to another. The reference market is concerned by the world.
Synthetic diamonds are sold at prices 10% to 50% less than natural diamonds. Their annual output reaches 3 billion carats (600 tons) and an amount of one billion dollars, compared to 130 million carats (26 tons) of mining. The production of synthetic diamond is mainly for industry. It uses much the diamond for its hardness and precision that it confers. The diamond is prized for it in ophthalmology. But all diamonds are not used in jewelry and the slightest defect can displace a stone path of the jewelry. It will then be used for industry.
Natural diamonds are a very scarce resource, located in geologically unique. If the diamond mines are now present on every continent, some areas are particularly exploited Canada, Australia, South Africa, Finland, Russia, etc.
Meanwhile, investments are very important materials, machinery, etc. In addition, diamond producers are constantly looking for new deposits. The industry is thus highly concentrated geographically in activities to reduce costs through economies of scale. And has a range of international clients.
By segmentation, we guess that the strategic business areas correspond to the De Beers diamond marketing steps natural and synthetic. To demonstrate this, however we will resume the analysis of the segmentation method studied. The following document represents the strategic segmentation result.
The market for the diamond jewelry industry will experience sustained growth for the BRICs: the growth rate of China will be 10% per year. However, global growth should be 3.6% per year until 2010. Thus, consumption, dependent on the general economic environment, is unlikely to absorb the overproduction that should exist from the year 2008. The lure of diamond jewelry will be more inclined towards small diamonds.
Tags: DeBeers diamonds, diamond industry, differences between diamonds, availability of diamonds
[...] Scenarios used 1. Likely scenario 2. Pessimistic scenario 3. Optimistic scenario C. Recommendations 1. Become better known to the general public 2. Adapt its supply to demand 3. Maintain its control of production 4. Investing in synthetic diamonds I. Overview of the diamond industry A. Definition of the diamond industry Where can we find natural diamonds? [...]
[...] STRONG 3.5 CONSUMERS The retailers, jewellers and jewellers have limited bargaining power. AVERAGE 2/5 NEW ENTRANTS The lapidary is an area with no real barrier to entry. All you need skills and tools. STONG 4/5 SUBSTITUTE PRODUCTS Natural diamond, in view of its characteristics, has virtually no risk of being replaced by another product. If the synthetic diamond is already on the market, its production remains low and linked to very specific uses WEAK 2/5 Competitive intensity Strong =>WEAK =>MOYENNE DOMESTIC RIVALRY Many competitors compete in the market already, including De Beers. [...]
[...] If the synthetic diamond is already on the market, its production remains low and linked to very specific uses. WEAK 2/5 Competitive low intensity =>WEAK =>AVERAGE The loss of De Beers' monopoly in the distribution, and the emergence of powerful mining groups greatly increase the intensity of competitive extraction industry. However, De Beers will not lose its leadership. DOMESTIC RIVALRY De Beers BHP Rio Tinto Debswana Billiton Namco Strong 3.5 SUPPLIERS The only providers are those of machines and tools necessary to retrieve. This is a competitive market with substitute products . [...]
[...] Segmentation Strategic De Beers III. Analysis of the competitive system of the diamond industry A. Identification of value chains B. Analysis of competitive forces according to Porter 1. Segment analysis extraction of natural diamonds before Analysis of segment extraction in Analysis of the distribution segment before Analysis of the distribution segment in Segment analysis lapidary before On synthetic diamonds: 7. Analysis of Wear on the manufacture and sale of synthetic diamond in 2008 IV. Possible developments and Recommendations A. Analysis PESTEL B. [...]
[...] (LVMH) Jewelers Jewelers Manufacturing synthetic Offer Request diamond Eur.) Synthetic diamonds - Synthetic cut diamonds Actors - De Beers - Jewelers (ASEA) - Jewelers Other - Industrial alchemists Final Sale of synthetic Offer Request diamond Eur.) Synthetic diamonds - Jewelry mounted - Jewelry Actors - De Beers In particular. Jewelers Jewelers B. Analysis of competitive forces according to Porter Segment analysis extraction of natural diamonds before Analysis of segment extraction in Analysis of the distribution segment before Analysis of the distribution segment in Segment analysis lapidary before Segment analysis lapidary in Analysis of Wear on the manufacture and sale of synthetic diamond in 2008 IV. [...]
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