...Introduction----- The diamond model is an economics model developed by Michael Porter in his book The Competitive Advantage of Nations. In the mid-1980s, Professor Michael Porter of Harvard Business School developed the model to assess the competitiveness of regions, states and nations. It’s a model that attempts to explain the competitive advantage some nations or groups have due to certain factors available to them. Porter used a diamond shaped diagram to illustrate the determinants of national advantage. That’s why it is called the Porter’s diamond model. The body -------- Now we will use some examples to illustrate the determinants of national advantages. For example:- • Germany is associated with good car making • Japan is strong with respect to micro-electronics and cameras. • France is strong with respect to wine. • The UK (at least until recently!) was associated with a strong financial services industry The chart --- Factor conditions: Some countries enjoy natural advantages. For example, France starts with an advantage in the wine industry because of its climate and soil. Finland, however, is never likely to be good at producing wine. Germany has an abundance of iron ore, ready to be used in the car and other industries. Climate and natural resources are known as basic factors. In addition, countries can develop advanced factors such as their transport infrastructure, telecommunications, and educational system. Demand conditions: The first step...
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...Firm Rivalry This part of the diamond focuses on the affect that competition has on rival firms in a relevant industry. Firms identify their strengths and capabilities to build on their market position and use a variety of strategies to remain competitive. True rivalry exists between firms that are comparable in size, power, product or service offering and their actions induce a response from their closest competitor. There are many strategies that firms engage in their attempt to gain a leadership position in the market, they include, pricing, product differentiation, brand image and the support services offered to consumers. A strategy based on solely on pricing can be detrimental to a firm as the reduction in prices also reduces profits and encourages competitors to follow suit, which in turn can spark a price war. This was evident in the 2011 milk war. Coles, followed closely by Woolworths reduced the cost of Homebrand milk to $1 a litre, the chief for Coles reported that they were the losers in the battle as the competition has made it impossible to return milk prices to a position of positive return (Anon, 2011). Intense rivalry can reduce the available profits within an industry with consumers reaping the rewards that remain for the taking due to firms continually lowering prices in an attempt to remain competitive. The differentiation of the products or services offered by firms remains the key indicator of profit levels, as firms that offer little difference...
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...Part 1: Porters National Diamond Analysis 1. Introduction The purpose of this report is to evaluate the attractiveness of Peruvian wine industry. In this report, we will discover the overall competitiveness and investment attractiveness of Peruvian wine industry. Porter’s National Diamond Analysis will be used as a tool to identify the opportunities and threats of Peruvian wine industry. Two-market entry strategy will be identified and recommended. The advantages and limitations of both strategies will also be discussed in this report. Peru is located in the west of South America, and has borders with Ecuador, Colombia, Brazil, Bolivia and Chile (peru.travel) Wine industry from Peru was brought from Spain after its conquest. (Ayala) 1. 2. Factor conditions 1. 2.1. Physical resources Peru soils are nearly level to steep. They are on drumlins and sloping to steep areas of glaciated uplands. Slope ranges from 0 to 35 percent. The soils formed in dense, loamy glacial till of Wisconsin age that is derived mainly from mica schist, granite, and phyllite. Peru soils are moderately well drained. Permeability is moderate in the solum and moderately slow or slow in the substratum. The climate is humid and cool temperate. Mean annual rainfall ranges from 30 to 50 inches and mean annual air temperature ranges from 40 to 47 degrees Fahrenheit. The frost-free season ranges from 90 to 160 days.(National Cooperative Soil Survey , 2013) The high relief and steep slopes of the streams...
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... Incorporated in 1999 as a Delaware corporation, Blue Nile Inc.is the leading online retailer of high quality diamonds and fine jewelry. Blue Nile offers its products for sale through the bluenile.com website in over 40 countries and territories throughout the world. The company is headquartered in Seattle, Washington and employs 206 employees as of December 2012. The objective of Blue Nile is to offer high-quality diamonds and fine jewelry at competitively attractive prices and at the same time providing useful information and guidance throughout their purchase process. High end jewelry shopping has in fact taken a surprising turn as more and more customers order them online at websites like bluenile.com instead of vising a brick and mortar store. Blue Nile is definitely not the only online jeweler. It has competitors like diamonds.com, whiteflash.com and successful retailers like amazon.com have also tapped this market in the recent years needless to say that the competitive market is intense and highly fragmented with brick and mortar stores also selling a big percentage online. While barriers to entry is high in this industry due to high capital costs, regular brick and mortars are entering this online market due to the ability to keep costs down while reaching a huge market. Threat of substitutes is really low which is a significant advantage to all diamond jewelers. The bargaining power of customers is medium as there are many options for purchase. However as people...
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...Body 4 3.1. Situation Analysis of Argyle Diamonds (SWOT) 4 3.2. Analysis of Argyle’s Marketing and Sales Strategy 5 3.2.1. Key Objectives 5 3.2.2. Strategies and Tactics (Value Chain Analysis) 6 4 Conclusion 8 5 Recommendations 9 5.2 Brown Diamond Sales Strategy 9 5.3 Other Recommendations and Sales Strategies 10 6 References 12 7 Appendices 13 Appendix A 13 Appendix B 14 Appendix C 15 Appendix D 16 Appendix E 17 Appendix F 18 1. Executive Summary The diamond industry is a burgeoning industry with high profit margins that is attractive to any organization around the world. However with production limited to a handful of companies and the opportunity to conduct sales promotions hindered by the monopoly of De Beers Diamond Company, the opportunities for growth are limited, at best. This report examines the situation of Argyle Diamonds of Australia. It provides a SWOT analysis for a deeper look into the current situation as well as analyzing the key objectives, strategies, and tactics that are employed by Argyle Diamonds in its efforts to promote coloured diamonds through the use of a value chain analysis. Finally, recommendations have been provided for Argyle Diamonds on how to capitalize on its strengths in the coloured diamond industry with particular emphasis on the opportunity they possess with the large production of brown diamonds. The overall analysis suggests that Argyle Diamonds are moving in the correct direction; a direction...
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...STRATEGIC MANAGEMENT ASSIGNMENT ASSIGNMENT ON ANALYSIS OF THE SECTOR USING PORTERS DOUBLE DIAMOND MODEL ON INDIAN AUTOMOBILE INDUSTRY Submitted To Prof. A. K. Kher Submitted By Rameez Bagban 03 Shahanawaz Mujawar 11 For the academic year 2014-15 INTRODUCTION: The Indian automobile industry is one of the key drivers of industrial growth and employment, which will gain rapid importance. In order to accelerate and sustain growth in the automotive sector, a roadmap is needed to steer, coordinate and synergize the efforts of all stakeholders. Exogenous and endogenous factors affecting industry also affects the competitiveness of the firms. Competitiveness captures the awareness of both the limitations and the challenges posed by global competition as an exogenous factor. Underdeveloped economies tend to be competitive by producing cheaper products, developing economies by producing better products, and developed economies by producing innovative products continuously. Though Indian automobile manufacturers are manufacturing innovative products and leading India to a new summit, there are various roadblocks, which prevent this industry from being a global player. COMPETITIVENESS DEFINED: Competitiveness has emerged as a paradigm towards the economic development. Michael Porter has defined competitiveness as productivity with which a nation utilizes its human, capital and natural resources. To understand competitiveness, the starting...
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...analysis……………………………………………………………… page 10 Jewelry supply chain…………………………………………………………. page 16 Industry value chain, Jewelry Retail………………………………………….. page 19 Company analysis……………………………………………………………… page 24 SWOT…………………………………………………………………………… page 46 Financial ratios…………………………………………………………………… page 50 Strategies………………………………………………………………………… page 53 Preferred strategy……………………………………………………………….. page 60 EVA……………………………………………………………………………… page 62 Blue Nile balance sheet…………………………………………………………… page 63 References…………………………………………………………………………. Page 64 Executive Summary Blue Nile is a publicly traded company. The company was established in 1999 and is headquartered in Seattle, WA and is one of leading online retailers of diamonds and fine jewelry. In addition to serving the U.S. market, Blue Nile offers products to selected countries through its Canadian and UK websites. 70% of their sales are from engagement rings and wedding bands and they are known for being a high-end jewelry retailer. The company offers its products on its websites without actually holding the products. Because of its unique business model, it is able to sell its products at much lower prices than the competitors. After a thorough analysis of the trends impacting the market, and Blue Nile in particular, we have come up with a strategy that will maintain and improve the company’s position in the industry. By increasing its focus on marketing, Blue Nile should be able to gain more of...
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...儿都不值钱。 Diamonds are not such high in value and rare in amount. On the contrary, diamond mine are one of the common minerals. In fact, in European and American areas, there are even more cut- diamonds than vehicles. They are valuable, however, they could not be exchanged freely like other products as the prices for second-hand diamonds are far below its origin. Besides, the natural diamonds can now be replaced by rhinestones. Actually, diamond might be worthless without its traditional image of romance. 钻石市场供大于求。世界上钻石的供给量，一直都超过它的需求，按照经济学供需规律，钻石应该会跌价，变得很便宜才对。但是，戴比尔斯通过持续买进市场上多余的钻石，来维持它的高价，估计到目前为止，戴比尔斯已囤积了价值超过百亿美元的钻石了。戴比尔斯还能支撑多久，还能持续买进多少市场上的钻石，没人能回答。 In diamond market, supply always exceeds demand. According to economic rules, the price will finally drop. However, De Beers have controlled and manipulated the price by continuously purchasing the stockpiles of diamond that come from other competitors. The price of which, has amounted to more than $10 billion up till now. How long can De Beers last and how much diamonds can they buy? No one knows. 天价打造的“浪漫形象”。戴比尔斯在世界钻石市场的成功，可以说是一个近乎达到垄断的完美范例。它一方面总能刺激市场对钻石的需求，另一方面则减少钻石供给，即使在1955年通用公司（GE）研究实验室宣布发明了人造钻石后，戴比尔斯公司仍能成功维持钻石的高价完美形象。事实上，戴比尔斯公司每年花在广告上的费用多达1.6亿美元，不断传递着“Diamonds are Forever”的信息，持续钻石浪漫的传奇。 They has put much emphasis as well as financial resources on preserving the romantic image of diamonds. To be frank, De Beers spends as high as $160million in advertising every year, continuously conveying the idea of ‘Diamonds are Forever’...
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...Until the beginning of the eighteenth century all known diamonds came from the Golconda region near Hyderabad in India. Pliny wrote an incredible account of how diamonds were found in an inaccessible valley. The locals threw meat into the valley and the diamonds stuck to it. Eagles carried off the meat to their nests from which the diamonds were recovered. At their peak the Golconda diamond fields probably supported many thousands of workers but were practically exhausted by the late seventeenth century. In 1844 diamonds were discovered in Brazil and for a while the Chapada Diamantina, or Diamond Highlands, in the state of Bahia, became the diamond capital of the world attracting prospectors and adventurers in the same way that the California Gold Rush did. A series of major diamond finds in South Africa from 1867 onwards, coinciding with a decline in production in Brazil, soon made it by far the biggest source of diamonds. As in Brazil and Indian the first finds were alluvial but by 1869 diamonds were being mined in South Africa. Their value depended on their rarity and Cecil Rhodes realised that if suppliers competed against each other that would be threatened. By the end of his short life Rhodes had gained control of the diamond mines and extended British rule over much of southern Africa. Mark Twain said of him that when he stands upon the Cape of Good Hope, his shadow falls to the Zambesi (Twain, 1904). One area that was not under British rule was South-West Africa...
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...company’s competence? Who is the company? What’s their background? What do they know about buying and selling diamonds? Established in 1989, Rare Investment is proud to be one of Canada’s leading authentic Rare Jewel Diamond Houses with unrivalled expertise in the sales and service of natural fancy colored diamonds and rare jewel investments. Through our 30-year history in the industry and our long-standing reputation with the industry’s leading mining and polishing companies, we provide investors with direct access to the world’s rarest diamonds with the greatest potential for appreciation. CREDIBILITY In any organization ‘credibility’ is paramount. When looking to invest in diamonds, we encourage investors to learn about a company’s leadership and credibility. Rare Investment's strategic operations are overseen by an executive team with expertise and experience in rare diamond valuation, diamond education, brand management, as well as significant expertise in the diamond trade. Rare Investment is backed by a sophisticated team of industry experts, GIA certified diamond advisors, highly-educated market researchers and the long-standing reputation of Rare Investment. Our brokers of rare jewels are highly skilled in valuing rare diamonds and have world renowned experience searching the world’s most coveted mines for the rarest and finest natural fancy colored diamonds with the greatest potential for appreciation. COST Has the company made money for investors? What kind...
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...as a result of DeBeers unethical research behavior they have been convicted along with the General Electric Company by the US justice department for conspiracy to raise prices in the $500 millions-a-year industrial diamond industry. "The indictment charges GE and DeBeers, which account for 80 percent of the industrial diamond market, with conspiring to fix and raise prices worldwide."(San Antonious, 2012) The DeBeers corporation was first guilty and second showed a direct correlation of purposely breaking the no-tolerance segment of the US law called the Sherman Act. Cartels: The Sherman Act’s first offence for even operation are unafraid thru intimidation and threats to acquire or control whatever item they go for to all suppliers/workers, businesses, the public or middle-man altogether. Next, DeBeers illegal cartels withheld large sums of the discovered diamonds they had acquired so they can hike up diamond prices. So, DeBeers could make it seem publicly that there was a perception that there was a shortage in supply of available diamonds to buy, therefore causing the public market to scurry to buy them at absorbent prices because they had to. Later as the demand of the market became more financially beneficial to them as a corporation, they made the diamonds more available, therefore allowing DeBeers to have financial gain on four parties directly: suppliers, businesses, the public and middle-men. So because of DeBeers acting unethically, they are facing years of jail-time...
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...Gems and Jewellery Last Updated: December 2010 Gems and jewellery form an integral part of Indian tradition. A legacy passed from one generation to another. The components of jewellery include not only traditional gold but also diamond, platinum accompanied by a variety of precious and semi-precious stones. The Indian gems and jewellery sector is expected to grow at a CAGR of around 13 per cent during 2011 – 2013, on the back of increasing government efforts and incentives coupled with private sector initiatives, according to a report ‘Indian Gems and Jewellery Market Forecast to 2013’, by RNCOS. As per the credit rating agency Crisil, the diamond industry in India is predicted to remain stable during 2010-11 due to improved prices and steady demand. Gems and jewellery exports from India is expected to grow by 30-35 per cent in 2010-11, according to the Gem and Jewellery Export Promotion Council (GJEPC), on the back of revival in demand in the international markets. Industry Structure Although, the market is highly dominated by the unorganised players, with increase in consumer income and economic prosperity, the future of organised retail in India is very bright. In its bid to enhance the market strategy, a gems and jewellery special economic zone (SEZ) sprawling over 40 acres with an investment of US$ 441.1 million is being planned to be set up by Gold Souk, the jewellery mall developer. The company plans to have residential apartments named Gold Souk...
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...Transport Phenomenon (Electrical and Thermal) in two allotropic forms of Carbon (Diamond and Graphite) Graphite and Diamond both are formed from carbon (two allotropic forms of carbon). Though they have similar constituent element, they differ a lot in their properties. Diamond is a good thermal conductor but a bad electrical conductor, while graphite is a bad thermal conductor but a good electrical conductor. This is one example of their property difference. The difference in their properties arises because of different arrangement of carbon atoms present in them. Basic physical and chemical properties of graphite and diamond to highlight their differences are as follows: Differences between Graphite and Diamond Physical Appearance: Graphite is opaque and metallic- to earthy-looking while diamonds are transparent and brilliant. Another important physical difference is their hardness. The hardness of minerals is compared using the Moh's Hardness Scale, a relative scale numbered 1 (softest) to 10 (hardest). Graphite is very soft and has a hardness of 1 to 2 on this scale. Diamonds are the hardest known natural substance and have a hardness of 10. Diamond is used as an abrasive because of its great hardness, whereas graphite is used as a lubricant. Structural Differences: Diamond Space Group Fd3m face-centered cubic Atoms/unit cell 8 Cell volume 45.385 x 10-24cm3 X-ray density 3.5155 g/cm3 {draw:frame} Graphite Space Group C6/mmc; C-centered...
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...Blue Nile Case Group D Monday and Wednesday 11:00-12:15 Anthony Allen, Laura Blakeman, Daniel DeMaiolo, Carla Hill, and Mason Shattuck 1 Industry Analysis: Dominant Economic Features Definition of Jewelry Retailing Industry & Nonstore Retailer Subsector According to the United States Census Bureau, the Jewelry Retailing Industry (NAICS code 448310) “comprises establishments primarily engaged in retailing one or more of the following items: (1) new jewelry (except costume jewelry); (2) new sterling and plated silverware; and (3) new watches and clocks. Also included are establishments retailing these new products in combination with lapidary work and/or repair services” (United States Census Bureau Jewelry Industry Definition, 2008). While Blue Nile competes in the larger Jewelry Retailing Industry, it also competes in the narrower Nonstore Retailers (Subsector 454) category because of the e-commerce component of the business model. The United States Census Bureau comments that “industries in the Nonstore Retailers subsector retail merchandise using methods, such as the broadcasting of infomercials, the broadcasting and publishing of direct-response advertising, the publishing of paper and electronic catalogs, door-to-door solicitation, in-home demonstration, selling from portable stalls and distribution through vending machines. Establishments in this subsector include mail-order houses, vending machine operators, home delivery sales, door-to-door sales, party...
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...The Price Of Diamonds Is Too High There are many arguments about the price of diamonds being too high considering that diamonds are not actually a scarce resource. Up until recently only De Beers controlled the diamond industry making the diamond industry monopolistic. (Zimnisky, 2014) However, over the last 25 years a series of events led to the dismantling of the De Beers monopoly. De Beers no longer has complete control over the diamond industry and instead it is market forces, not the De Beers monopoly, driving the diamond market. (Zimnisky, 2014) The following essay will discuss what events led to the dismantling of the De Beers monopoly, the role of the diamond cartel in determining the price of diamonds as well as the history of the diamond cartel. diamonds in South Africa and businessman Cecil Rhodes purchased as many diamond mining claims as he could including the farmland owned by the De Beer family. (Zimnisky, 2014) Eventually, Rhodes had acquired enough properties of the majority of the world’s supply of rough diamonds and he called his company De Beers Consolidated Mines Limited. De Beers effectively influenced all the world’s rough suppliers to sell production through the de Beers channel, acquiring full control of the global supply not produced by the de Beer mines. (Zimnisky, 2014) This power gave rise to the diamond cartel. De Beers is the dominant company in the industry and has been around since 1880. (FALL, 2007) Since 1925, the Oppenheimer family...
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