Case analysis on Chandini group of diamonds

Presented by: BABASAB PATIL

Facts of the case

Chandini group of diamond is one of the unique diamond industry.

The industry is sustained by two factors

Symbol of pride Values

The diamond produced were of three types

High carat, high value Low carat diamonds Low value engagement rings

Contd..
Rothschild a wholesaler had been doing this from last five years and he has succeeded in two areas
By increasing the supply at lower end, he has successfully

brought down the price of Engagement Ring category

By restricting the supply of solitaries, he had kept their price up.

Contd..
Diamonds of different carats were mixed and put in a bag. Each bag was auctioned. It was not a open auction. The bidder will not get the diamond bag at the price he has

bided, he has to purchase the bag at the price fixed by the

company itself.

Contd..
Their advertisement campaigns were like:
Diamonds are forever Diamonds are girls best friend

Diamonds show her how much you love her

Q .What are the core competencies of chandini diamonds? what kind of change needs to be brought about through the diversification?

Core competencies:
They produced diamond in 3 categories High carat high value diamonds(solitaires) Low carat diamonds Industrial grade diamonds

Auction-to attract the bidders Worldwide advertisement

Controlling product mix proportion of low value Diamonds

were higher

Change needed for diversification

Open auction. Price should be disclosed. Not to concentrate only on girls.

Consider all level people.

Change in bidding strategy It should not hurt the bidders

Contd..
Should concentrate to all the people for bidding, should not only for the selected people Should come up with slogan which should not differentiate the

gender
They have to separate each category of diamond and keep for auction

Conclusion
As the companies turnover had increased to 30% , we suggest them to the changes mentioned above as it is necessary for every company and each individual to adopt the change for survival and growth. Hence by adopting these changes the

company can double the profit in coming years.