Rough Diamond Industry

By Patrick Deutsch
 • Product: The product being traded in this industry
is rough diamonds
What are • Producers: The producers of this product are large
the companies which have significant shares of the
market.
components • Consumers: The consumers in this industry are
of this jewelry houses.

industry?
  The market structure in which this industry

Market
operates in is an oligopoly. This is as the market
has only a few relatively large firms e.g. De Beers
Structure & Al Rosa, and it is difficult for smaller companies
to enter the market.
 • The rough diamond industry is dominated by De
Beers and Al Rosa. These two companies have a
significant share of the market.

• There is a large barrier to entry as often, prior to

mining for rough diamonds, such as a limited
Oligopoly amount of licenses or permits available to
companies; which are often given to the large
companies by governments because of the lobbying
power of the large companies.