In An Inquiry into the Nature and Causes of the Wealth of Nations (1776), Adam Smith said: “A diamond, (…), has scared any value in use; but a very great quantity of other goods may frequently be had in exchange for it”. Thus, a diamond is not only a “girl's best friend” but has also a huge value in terms of exchanges. The first diamond discovery in Canada was made in 1991. Thus, the Canadian diamond industry is young compared to other diamond industries worldwide. The first production began in 1998 and in 2003 the Diavik mine opened. The development of the diamond industry in Canada has involved many actors: governments, populations, and retailers. In 2000 the Government of the North West Territories was the first to introduce a certification program and since 2002 it has launched a marketing campaign to promote the diamonds from its mines.
[...] As the Canadian diamond industry is not facing problems related to it own organization, strategic options have to improve the current situation: To keep on being aware of transparency: it means that the Canadian diamond industry has a role to play in the regulatory processes. The creation of Canadian Code of Conduct” and the leading work done for the Kimberley show that Canada is actively involved in global and local regulatory processes. To develop the secondary industry: it means to make new researches and exploit the opportunities in marketing diamonds for different uses. [...]
[...] As a consultant for the Canadian industry, one will try to analyze what are the main issues for the Canadian diamonds industry in its implementation of a marketing strategy. Then, one will identify several strategies that could respond the problem. Finally, we will develop an implementation plan for the strategy chosen. Analysis of external factors, opportunities and threats Political, Economic, Social and Technological environment This area is very important to understand the issues faced by the Canadian diamond industry. The political context plays a major role in the diamond industry. [...]
[...] Innovative techniques are more and more used in the diamond industry concerning how to product synthetic diamonds but also to improve the quality and control of natural diamonds. Buyers Who buy diamonds? The first response that comes to mind is likely to be the following one: a man who wants to offer a ring for his true love. But only 20% of the total production of diamonds worldwide is used by the jewellery industry. In fact of the production is used for industrial purposes. [...]
[...] Moreover, grey markets for diamonds exist. As a consequence, the diamond industry is facing political and ethical issues. Even if efficient regulatory measures have been implemented during the last decades, transparency is not always the rule. Diamonds can still be associated with corruption, illegal traffics and exploitation in several countries. Unfortunately, the recent film Blood Diamond is not only fiction but clearly denounces a grave reality. The industry also faces new challenges. The production of synthetic diamonds is seen as an important issue for the industry. [...]
[...] Jewellery diamonds are sold in a large rank of stores; this is successful way to promote luxury among more people. Opportunities The fact that the diamond jewellery industry tries to multiply its channels of distribution (one can notes that The Internet is also more and more used to sell diamond jewellery) is one of the indicator that stresses the fact that the diamond is a huge market. A lot of different diamond's uses exist. If the industry and the jewellery are the main ones, new uses are actually observed. [...]
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