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Synthetic diamonds might be a disruptive innovation. They are often cheaper, lower quality, and lacking in complex features such as authenticity. There is a dif
by wyc 8y ago
Synthetic diamonds might be a disruptive innovation. They are often cheaper, lower quality, and lacking in complex features such as authenticity. There is a different and advantageous cost structure compared to that of mining for natural diamonds, and this product fulfills the new job of culling environmental and humanitarian concern.
In this scenario, we may be witnessing an incumbent firm unable to adopt new disruptive technologies because its revenue structures are incompatible, as the current margins and volumes for synthetics are likely far lower than those of mined diamonds.
- artellectual 8y agoLower Quality? Lacking in complex feature? authenticity? what is considered authentic? If i tell you water is authentic if it's made from 2 hydrogen atoms and 1 oxygen atom, in the same way that diamond is made from compressed carbon and whether synthetic or dug from the ground. when the chemical construct is the same what determines it as not being authentic and lower quality? In fact synthetic diamonds offer higher clarity than natural ones depending on which one you choose, they have visually perfect ones in the same way natural diamonds do. So where is this "lower quality" coming from?
- wyc 8y agoQuality can be pretty subjective. If you're making a saw-blade that needs diamond tips, synthetic could be even better, as you rightly mention. If, for whatever reason, you value that the rock has been dug from the ground, then on this dimension the synthetic has worse quality.