Topic: Gem and Near-Gem Diamonds (with DeBeers as the company focus) Questions to be answered in your paper: What have been the most important drivers of value creation in this industry over the historical period studied and what are they today (at the time period at the end of the case material you used)? (40 points) How competitive and attractive is the industry and how has that changed over time? Use concepts of market structure, the nature of rivalry (including the interaction among competitors, if that is important), and market behavior and strategies used to compete. If you present a Five Forces analysis, drive more deeply than the overall big-picture view that provides. Remember that in the first question we seek the most important drivers. Please continue that focus on most important in this question. (45 points) What is likely to happen in the next 5-10 years to the economics of this industry and to the company on which you focus? (Meant to be a focused set of conjectures about the future, based upon what you see as most important; not meant to be a long portion of the paper.) Do NOT research what did happen and report that. Your analysis from the two questions above can be extrapolated forward using some ideas about future events that might change the industry and/or the expected consequences of the competition today. If there is an update (on the assignment sheet) on what happened, you might compare that to what you would have expected. Keep it simple as it is not a heavily weighted question. (15 points) Each of the industry/company choices offers different opportunities to emphasize aspects of the questions above. For example, Mittal Steel offered a highly-detailed look at all of the dimensions raised in the questions. DeBeers offered a look at a global cartel that adapted over time and in which very specific competitive practices are articulated, counting the video played in class. We also updated the industry to the present day in our second class on the case. Air New Zealand offered an industry beset by frequent external shocks, in addition to tough industry economics. Warby Parker allowed us to examine a dynamic new segment of an industry that is operated more traditionally and is controlled by one very large competitor. Google presented an example of a network industry with platform-based competition. Your paper should take advantage of the richness offered for the company/industry selected. Papers will be evaluated by the criterion of value-added as compared to a straightforward (but uncritical) survey of notes taken in the relevant classes. A premium will be placed on adding focus and perspective on the analytics of the industry/company economics. Your writing should be succinct and evaluative.
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