C/B/364. Porters Five Forces on the Mining Industry

This paper relates to competitive environment of the mining industry, specifically that for diamonds and gemstones. An analysis of the competitive environment was carried out using Porters Five Forces. The analysis has found that the possibility of high prices in this industry does attract many investors, mostly government backed or illegal entrants. The industry is controlled by a powerful cartel, the Central Selling Organisation, which maintains the price structure and controls the supply.