Highlights of Alrosa Diamonds business model

Overall business vision of Alrosa diamonds can be summed up as strengthening her leadership position in the global diamond industry. In order to achieve this   a business model has been crafted. Here are the highlights:

Key partner remains the Russian State which supports the entire gamut if key resources & key activities. Most if not all technology processes are supplied by the government.

Key resources is the major strength the firm possesses. There are several mines in the Republic of Yakutia that Alrosa owns & operates. Aikhal & Udachny are underground mines and Nyurba is an open-pit mine along with   lesser known ones. Altogether these mines said to possess more than one billion carats of roughs at conservative estimate. Alrosa has patent rights over the mine technology along with more than sixty licenses in operating this technology.

Key activities include mining & processing diamond roughs where the outputs are three types:

1. High quality diamond roughs

2. Cut & polished diamonds ready to be used by jewellers

3. Diamond studded jewellery home made by the firm

Customer segments, therefore include diamantaires, jewellery manufacturers domestically and elsewhere globally, lastly the firm’s dedicated jewellery arm that uses splendid designs appropriate for fashionable suites and durable too. As regards to the main buyers for roughs India occupies the first place followed by countries including Belgium, UAE & Hong Kong.

Customer relationship is the building block that is vital in the entire business model. This is dictated by maintaining stable relationship with buyers within and without. Obviously, price of roughs being the critical factor buyers of high quality stuff are often consulted with before despatch. Adjustments of price or quantity or both are made taking into considerations of the global market trends.

Value proposition is yet another essential component. There are three prongs. One is mine to diamantaire where the best quality roughs are turned out using innovative mining technology as well as state of art processes and shipped out to  buyers most of them are located in Surat and Antwerp. Second prong relates to mine to jewellers where the output is cut & polished diamonds that are ready to be mounted in the pieces of jewellery. The last prong is the in-company demand for the diamond studded jewellery marketed within Russia and outside.

Needless to say, the cost structure & revenue stream are marvellously placed as the firm earns more than Ruble 332 Billion in turnover and Ruble 135 Billion in profit. An unbeatable ratio of 40% proving that Alrosa Diamonds business model helps the firm to achieve its business vision successful

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist