Case Study : Supply Chain Management

1) The competitive forces confronting Blue Nile and other online retail jewellers are medium or weak in strength, with the exception of the strong rivalry between sellers. The potential for new entrants to the jewellery market is relatively low due to the high costs of inventory, the lack of differentiation of product and the brand recognition held by the industry leaders. Good substitute products for a quality diamonds are not readily available. There are synthetic gemstones, cubic zirconium and other jewellery options, but the general consumer does not see these as a true substitute for real diamonds.

The companies that are competing in this industry are Blue Nile, Zales, Tiffany 's, Online Jewelry Stores (Diamonds.com, etc…), and Local Jewelers. The Rivalry among the competing sellers is strong because there are many competitors and they are basically offering the same product. Also, the costs buyers experience when switching brands are low.

Ajaya Tachajanta 2011 Sales strategy; Sales is treated as local operations since different markets would have different healthcare demands, structures, and regulations. GEMS focuses on the wholly-own direct sales where the market is large enough to support the infrastructure as to reduce the intermediary providing GEMS to fully enjoy the margin. Product differentiation is established on product itself and highly on the services. The value added service contract sales is focused with the move towards in-house service as GEMS’s superior technology contributing differentiation competitive advantage of GEMS over its competitors. Marketing strategy; Since the per capita income referring to the purchasing power, and demographics and the structure of the market itself referring to the products demanded varies across countries, thus the need of localizing marketing is important. GEMS tries to customize its products in respond to demand while GPC concept is still hold. The marketing of used product has been implemented as an option for low purchasing power clients which GEMS

Diamonds have been identified as being precious but expensive gems for many decades. Diamonds were extremely rare, only found in India and Brazil until the late nineteenth century (Vogelsang, 2005: 5). After the discovery of diamonds in South Africa, the diamond industry began to flourish. Diamonds then became very abundant and cheap to produce. In order for the value of diamonds to remain as high as they were during the phase in which they were still rare, a diamond cartel was introduced. A cartel is defined as a group of firms that gets together to make output and price decisions (Cartel Theory of Oligopoly, n.d.). Hence, the diamond cartel aimed to maintain high prices to maximise the profits of the suppliers by restricting the supply.

Diamonds have become the ultimate symbol of luxury and money and are highly valued throughout the world today. However, in the spectrum of time diamonds have served a variety of other purposes. Diamonds were formed 3.3 billion years ago by extreme heat and pressure within the earth and are formed entirely out of carbon, making it the hardest natural surface known to man (debeers.com). Archaeologists believe that early humans actually used diamonds as spear heads and other tools. However, over time diamonds have become a luxury good, connected with much prestige. The high status of diamonds helped create the diamond rush that would forever alter the fate of South Africa.

Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay

Rolex and Patek Philippe are part of the jewelry and watches market – watches consist of 20.8% of the jewelry

India remains a popular destination for both purchase and transplace, and buyers come from India’s middle class and from around the world include the US, Canada, England and countries in

Diamonds have long been considered some of the most prized and sought after possessions. They have been perceived as indicators of wealth and romance. The diamond market however; has been one of the most controversial and controlled markets in history run by a cartel “…an association of suppliers with the purpose of maintaining prices at a high level and restricting competition” (Oxford English dictionary) formed to prevent the market from becoming flooded with diamonds from too many suppliers, resulting in a price drop.

Society as a whole has become more and more dependent on diamonds as the years go by. From finding this rare gem in the depths of the earths’ crust, to it now being used as a certain love gesture. The rarity of this beautiful gem has changed, however has the price of diamonds changed accordingly with its value (placed upon by society). This essay will effectively argue that the price of diamonds is too high in the market in the present day as a result of various economic factors. The essay will give information on diamond cartels and how these cartels had been influencing the price of the diamonds. Furthermore, the essay will give rise to the economic theories that affect these prices and how the price is controlled in the market.

Wholesale market for high quality cut diamonds will provide continuity of supply and pricing (O)

Decision: We have decided to penetrate the emerging markets of China and India with a new line of luxury diamonds created with a special serial number and inscriptions bearing the name of the special promotional line that they will be a part of and the De Beers logo. To restructure ourselves as a private-type luxury brand retailer in the Chinese and Indian markets, we expect to harvest new growth opportunities and profit potential. Synthetic diamond creation is fine for small sizes to be marketed as saw blades and abrasive wheels but that sector represents only a small percentage of the need for diamond production. The cost is too high to manufacture a larger size diamond for the jewelry consumer. To continue on the path that we are on is not a valid option because the market, the demand and the consumer are all changing with the times. To stay stagnant against

We decided that it was first best to determine the frequency with which respondents wear jewellery, which gave us an insight into the frequency of jewellery use in the target market (respondents were all females aged 18-50). After discovering that of 38 respondents, 32 wore jewellery every day we were able to determine that the management issue was certainly not with the demographic of MoiMoi’s target market. (Q1, Appendix

Tiffany & Co. is one of the oldest luxury jewelry brands, which was established in the U.S. by Charles Lewis Tiffany. The company when started was a stationery shop at New York’s Broadway Street, however because of the dedication and risk taking ability of its founder it today become a leading luxury jewelry and high-end specialty goods retailer. Tiffany’s offers a wide range of products to its customers including jewelry, watches, home pieces, stationery, crystal and chinaware, fragrances and silver ware. This report focuses on launching this luxury jewelry brand in New Delhi, India. The relation between Tiffany’s and India wouldn’t be new, it would rather be connecting old ties and making a strong foundation for its future in the country. In the initial years of launching the Brand the founder ventured into India in search of rare and ancient Indian Bronze. So now the company can come back in order to rejuvenate its old relationship with India. Apart from heritage reasons, it would also be highly profitable for them to venture out to India as they have been facing losses in their home country. Also, the brand value of Tiffany’s product would be very high, it would become a status symbol to own a Tiffany’s Product in India, which is not only good for the goodwill of the company but also its profit.

“Diamonds are forever.” Or are they really? For about 80 years, the De Beers diamond company has pulled off the biggest marketing scheme ever known to mankind. Indeed, how much would you estimate your diamond engagement ring wrapped around your finger? A fair amount would be the right thing to say. However, the compressed carbon stone is worth a lot less than anyone would imagine, which is why De Beers has been such a successful company, who, thanks to a good use of marketing as well as strategy, has led the entire planet to believe that diamonds are rare, luxurious and expensive stones. They are the leader in their field, as the De Beers diamond output from their own activities is about 40% of the world’s total rough diamonds. The key to their success is that they have implemented a single channel distribution, controlling about 70% of the world’s diamonds as they pass through the CSO (Central Selling Organization, owned by De Beers), which regulates the diamond output to the market, to controls the supply and therefore the high prices. “Since the late 1800’s the South African multinational has regulated both the industrial and gemstone diamond markets, and effectively maintained an illusion of diamond scarcity” (Hollensen, 2007).