Answer to Question #307310 in Management for suvi

Question

Refer to Porter’s five competitive forces and their impact on the global diamond industry. (40)

Answer 1

Bargaining power of buyers abd sellers- it hinders small companies from increasing prices or manage costs.

Industrial rivarly - it occurs when many companies target the same customers, and in the long run, prices and profits if diamond might reduce.

Threat of new competitors- it occurs due to emergence of new products,powerful new suppliers or buyers and these regulate the marketplace. This forces existing suppliers change the way of doing things by innovating new products.

Threat of substitutes- availability of substitutes for diamond will affect the profit diamond industry generates especially when the substitutes have lower costs than diamond.