A Research On The Development Strategy Of CN Diamond Trading Company

CN Diamond Company is a trade-based company with cut diamond,as its main goods.CN first introduced on-time online ordering system of B2 B diamond wholesale in China diamond trade industry in 2008,which broke through the traditional sales mode in the field of the diamond trade.Along with the preference to low inventory and rapid development of B2 B Internet sales,CN has achieved impressive grades through network sales.The company’s sales rose from 50 million to 400 million within a few years,making the gap with EUROSTAR,the biggest diamond wholesaler in China,whose sales scale is 1 billion,gradually narrowed.However,CN has been trapped in the dilemma where sales and profits stagnated because of the aggravation of market competition.It has been extremely important to establish practical and effective strategies,because it concerns not only the sustainable development of C,but also the status of CN in diamond industry.This article tries to solve the developmental problems of CN Diamond Company,based on the author’s working experience and the grasp of strategic management knowledge.The author analyses and concludes factors from outside and inside the company by means of PEST,Michael Porter’s Five Forces Model,Potter’s value chain and SWOT matrix,etc.The advantages as follows:1、CN Diamond Company has grown to be a mature and professional company after 8 years online sales.By contrast,our rivals mainly focus on the development of traditional market and jewelry retail.2、Our company has good relationships with J.B.BROTHERS and other global top ten diamond cutting factories.3、Our company has accumulated rich costumer resources,with thousands of clients,after more than ten years development.We put forward the idea of platform strategy based on the Internet selling,combining with our company’s vision which is to be a leader of B2 B sales model of diamonds and to be a professional productive service provider of diamond industry,to ensure the long-term development of our company.With this prospective,we aim to transfer the company from an Internet retailer who has simple product catalogs to a service provider who could set up professional trading platform and provide professional consulting services for factories and costumers.The main profits will be fixed commission extracted from successful trades.Meanwhile,this article discusses the supporting measures of the implementation of the strategy from different aspects,such as Internet marketing,supplier relationships,customer service,construction of the band and funds management,etc.