This document analyzes Michael Porter's Five Forces model for the jewellery industry. It finds that rivalry among existing firms in the industry is high due to a large unorganized sector in India and competition from international rivals. The bargaining power of suppliers is medium as there are some alternative suppliers but India is a large consumer of gold jewellery. The bargaining power of buyers is low as buyers are divided between domestic and foreign with India being a major exporter. Barriers to entry the industry are high to medium due to large capital needs, government regulations, and skilled labor requirements. The threat of substitutes is low as jewellery remains a preferred investment compared to other assets.

1. Presentation by:-
Anshul Pareek
Pravita Raja
Sayan Bose
Tulika Jeendgar
Vimla Mishra

2. Michael Porter’s Five Force Model for Jewellery Industry
POTENTIAL
NEW ENTRY
INDUSTRY COMPETITORS
SUPPLIER BUYERS
RIVALRY AMONG EXISTING
FIRMS
SUBSTITUTES

3. Inter-Firm Rivalry High
Inside India
•Large presence of unorganized sector. 0.2 Million Gold
jewelers and over 8,000 Diamond jewelers
Outside India.
•International rivals Such as, China
•Threat from producing nation like S.A. & Russia.

4. Bargaining Power of Suppliers Medium
• In jewellery industry the suppliers are S.A., UAE, Australia,
US, Congo, Botswana, Russia, DTC.
• Few Alternatives of cutting & polishing.
• Skilled labor
• Bargaining power of India is enhanced because India is
largest consumer of gold jewellery.

5. Bargaining Power of Buyers Low
Divided in two types
• 1. Domestic buyers &
2. Foreign buyers
• As investment (Demand increase)
• Bargaining power of Indian exporter is high because
Majority of the world's rough diamond production is cut
and polished in India.

6. Barriers to entry High to
Medium
• Large capital requirement
• Government subsidy
• EXIM policy & government’s rules-regulations are
high
• Skilled manpower is essential

7. Threat of Substitutes: Low
• Substitutes are Real assets, Stock market, &
Bank deposits & mutual fund investment and
Other types of jewellery like imitation
jewellery, bagasra jewellery, stone jewellery etc.
• Second preferred investment behind bank
deposits
• Status and standard of living increase so