“A Diamond is forever.. but power may be not” D E B EE R S C A S E S T UD Y A Cash Cow Industry An estimated US$13 billion worth of rough diamonds are extracted every year Extracted diamonds can be used for industrial purposes or in the luxury sector (gemstones) Diamond jewellery is worth more than US$72 billion per year (very high profitability) The biggest slice of the cake A giant’s first steps Founded in 1888 in South Africa by Cecil Rhodes‚ De Beers quickly obtained a dominant
Premium De Beers Diamond
Jewellery Diamond Encrustations British Crown Jewels Koh-I-Noor diamond: (“Mountain of Light”) One of world’s largest diamonds The Cullinan Diamond: largest diamond rough ever found Hope Diamond Deep blue colouration Lack of internal flaws Shows VS1 clarity First sold to King Louis XIV Top ten diamonds by size Diamonds >10 carats = exquisite Diamonds >50 carats = possession of museum/wealth people Diamond >199 carats = not sold‚ history Epic diamond = smaller diamonds of intense
Premium Mineral Corundum Color
in the diamond industry. Discoveries of diamonds in the late 1800s were pioneered in South Africa‚ in which DeBeers held a heavy monopoly over. Since then‚ they have cultivated an impressive track record and leadership position. The Central Selling Organization (CSO) controls and regulates the flow and sale of rough diamonds‚ and was acquired by DeBeers in the 1930s. Due to a stable economy both locally and internationally‚ DBCM was the world’s largest producer and distributor of diamonds in late
Premium Diamond
Two main vulnerabilities of the diamond industry: price of diamond linked to supply and value diamond linked to belief that they are rare and therefore special‚ and thus suitable token of sentiment. DeBeers exercised monopoly power by effectively controlling production and distribution of diamonds‚ thus controlling supply and ability to control pricing. When the market started to shift as other sources of diamonds were discovered‚ DeBeers still held an advantaged position as they had sole control
Premium Monopoly Cartel De Beers
Introduction The brilliance of diamonds and its rarity make the gem highly desirable. Although diamonds serve no significant usefulness to an ordinary person‚ in a lot of cultures‚ diamonds are not only fashion accessories but it also symbolizes a person’s standing in society and financial noteworthy. Diamonds are not manufactured‚ they are gift of nature and mining diamonds in the depths of the Earth’s mantle requires a complex and expensive process. The famous slogan‚ “Diamonds are forever” solidifies
Premium Customer service Diamond Sales
association with engagement rings and diamonds‚ Tiffany & Co now reaches a wide market through its sale of high-end jewelry‚ watches and glassware. Tiffany’s has grown steadily alongside the American economy and expanded across the United States and into South America‚ Europe‚ Asia and Australia. The firm offers a wide array of price points in its pieces‚ from sterling silver items under $100 to quarter of a million dollar signature pieces covered in diamonds and other gems. Tiffany & Co sells jewelry
Premium Diamond Luxury good Engagement ring
different properties. The allotropes of carbon are diamond‚ graphite‚ fullerenes‚ carbon nanotubes‚ carbon nanobuds‚ amorphous carbon‚ glassy carbon‚ lonsdaleite‚ and carbon nanofoam. Diamond is the best know allotrope of carbon. It is the hardest known natural mineral which makes it very rough. In the structure of the diamond‚ each carbon atom is covalently bonded to four other carbon atoms and has a tetrahedral shape‚ meaning it is a nonpolar molecule. Diamond has a very melting point and has a density
Premium Carbon Graphite Diamond
Case Study - Blue Nile‚ Inc. Zequn Fan (Ford) Executive Summary Google is a well-known technology giant in the IT industry. Motorola is a well-known manufacturer of mobile devices. Blue Nile‚ Inc. is the largest online jewelry‚ mainly diamond‚ retailer around the world. Their business model is pioneer in the industry. However‚ Blue Nile found itself stuck in the middle‚ because of Tiffany’s and DeBeers’ occupation of high end market and Amazon’s and Overstock.com’s occupation of low end. In order
Premium Profit margin Strategic management Diamond
Costco is posing huge competition not because of cheap cost and good quality but also good return policy. Customers can get bigger carat diamonds of next to similar quality at half a price; the only difference is the brand and bi big blue box packaging. Supplier Power a) Few diamond suppliers in the world‚ so they have power to dictate prices. b) Moreover they do diamond cutting and polishing on their own Buyer Power a) Buyers have high disposable income b) They feel connected with the brand c) Able
Premium Brand Branding Marketing
Utilising these tools‚ an environmental scan of the jewellery industry will be performed. PESTEL Analysis Political Many of the raw materials for the jewellery industry can originate in countries that have political instability. Of the top five diamond producing countries‚ Canada is the most politically stable‚ with minimal probability of any mining disruption due to war. The other four are a different situation. Russia is still in a state of internal turmoil regarding Chechnya and other breakaway
Premium Diamond Jewellery Environment