Business Plan The Stone Appeal Jewelers Harvard Case Solution & Analysis

Competitive Analysis:

The art industry, specifically jewelry industry is very large and diverse in nature as well. The range of jewelry makers varied to a large extent in terms of art and their pieces of work. The world is full of jewelry makers and those jewelers are selling their products through various mediums such as shops, departmental stores, online selling, and, etc.

Here are the lists of few competitors that are engaged in online jewelry businesses:

Tiffany:

Tiffany is a well-known and famous online brand that sells one of the most sophisticated and elegant jewelries all over the world. The company is making jewelry related products not only for women but for men as well. The basic products of the company include rings, gifts, watches and other jewelry items as well.

Jewelry Television:

Jewelry television is engaged in a jewelry business for years and famous for selling jewelry at lower prices than the industry average. The main jewelry products of the company comprise of jewelry for bridal, gemstone jewelry, selling of loose stones and other items as well.

Stylism:

Stylism is a brand that offers jewelry based on many magnificent designs and engaged in selling jewelry online to the customers all around the world. The variety available at the company’s website is vast and in fact, the broadest among all its competitors. With a wide variety, the company is also offering products at extremely affordable prices as there are products at Stylism that start from $15 as well.

Blue Nile:

The main products of the company include jewelry made from diamonds, however; the company is also engaged in making jewelry from other items like gemstones, pearls and different metals as well. Blue Nile is known to be the biggest diamond retailer in the online business; thus, has a good brand image and reputation as well in terms of quality and reliability.

As stated above that the company will have to face many competitors but still, the primary focus of the company will be based on products with gemstones in it along with the customization factor that will be an additional feature for the competitors.

Sourcing of product:

The raw materials used in the products will be outsourced, and the countries that have been chosen for outsourcing include China, India, and Brazil. The owner of the company himself will contact the jewelry manufacturers in those countries for the purchase of all the raw materials required. The manufacturers in these countries have committed selling raw materials at wholesale price along with giving flexibility in credit terms as well. Flexibility given by the suppliers in turn helps the company in making day to day operations more strong.

Market analysis:

The Stone Appeal Jewelers will particularly target women specifically in New York and then in other parts of the world as well. In addition to this, they are targeting women who are working in the office and highly social in nature. The women targeted by the company are extrovert, outgoing, confident and like to interact with people and need to look good in terms of their outfits, jewelry, and overall appearance. As the economy is shrinking because of various factors like credit crunch, but the people are still willing to spend money on their self, and they have an appetite for the accessories that helps in making them look beautiful.

Competitive advantage:

The competitive advantage of The Stone Appeal Jewelers is quite simple. The primary competitive edge that the company has is the designs that are so unusual and unique in comparison with its competitors. Many competitors think that this strategy can easily be copied by them, but the implementation is very difficult as being creative, and fashionable is not an easy task to do. In addition to this, not every person can be skilled and artistic as well. Steve himself has experience in jewelry making and artistic as well that helps him in making their jewelry designs innovative and unique.

Industry analysis:

There are further classification of jewelry as it can be classified as fashion jewelry that include bracelets, rings, gold chains, watches, earrings), bridal merchandise like jewelry for wedding and engagement, gemstones jewelry and loose gemstones accounts for almost the biggest chunk of the jewelry market that is 46%. In addition to this, the gold type jewelry accounts for almost 11%, gemstones like emerald, zircon, rubies and sapphires accounts for almost 9% of the total market and lastly, there are watches that account for about 4% of the total pie (First Industry Research report, 2011)................................

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