Diamonds on ice

Résumé du document

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.

Extraits

[...] A lot of different diamond's uses exist. If the industry and the jewellery are the main ones, new uses are actually observed. Tourism, chemistry, and cosmetics the innovations are various. Competitors The diamond industry has created very profitable businesses throughout the world. In terms of production, what are the main competitors for the Canadian industry? A large amount of the production is made in Africa. Since the 70's Botswana has developed a large activity of production and is currently the first producer worldwide. [...]

[...] This global context is complex. Governmental, economical, regulatory and political challenges have to be managed. How to market the young Canadian diamond industry in such a context? 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. [...]

[...] A common view of what is the industry is needed. The strengths of the Canadian diamond industry have helped to implement a brand. Evaluation of strategy options The fact that the Canadian diamond industry has created its own brand is a huge advantage. Now, the industry still has to face many challenges related to the global diamond industry. 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. [...]

[...] Russia is the second producer worldwide. These countries have been producing diamonds since many years. Australia is also one of the main competitors. Threats Concerning the diamond industry, threats are not as related to the notion of profitability as it can be the case for many other industries. The fact that the demand for diamonds outstrips the production is once again a key variable. But the diamond industry is facing many other threats. The first danger for the diamond industry is the remaining of diamonds. [...]

[...] The Canadian diamond industry is seen as unique. Innovation is continuously stimulated. Technologically speaking, Canada has developed advanced processes to control quality. A last important component of the potential growth of the Canadian industry is the development of a secondary industry which includes such opportunities as tourism. Weakness The Canadian diamond industry has to deal with a legislation that is an obstacle for its activity. In fact, the jewellery industry in Canada has been taxed since 1918 and this tax is going to be applied until 2009. [...]