Modelling the drivers and strategic responses within the platinum industry.

Abstract

The purpose of this research is to model the drivers and strategic responses within the platinum industry. This research attempts to create a model of the impact of industry specific factors on the demand of platinum using Porter’s Five Forces model in order to identify opportunities for new revenue streams, evaluate threats to the industry and identify measures to mitigate any negative impacts, while evaluating the imperative of long-term sustainability of the platinum industry. Data were collected using a semi-quantitative methodology known as Fuzzy Cognitive Mapping (FCM). The FCM depicts causal linkages between variables that are not very clear, or cannot be statistically modelled, and allows directional propagation (both forwards and backwards) showing whether one variable or ‘node’ has a positive or negative effect on the next. The draft FCM that is constructed based on the literature review conducted is cross analysed and vetted through in-depth interviews with platinum industry experts. A final FCM is produced after these interviews, from which scenarios can be simulated. There is a positive outlook on the future of the platinum industry providing efforts are made by industry role player to find innovative ways of moving forward. This study stresses the importance of research and development into the formation of new technologies to create new uses and revenue streams for platinum while finding more environmentally friendly mechanisms by which to conduct business.