The WSJ ( ) reported "The final article on the luxury firm Richement, owner of French jeweler Cartier, contends that "diamonds and technology don't mix." Thus, a sale or spinoff of Richemont's struggling online retailer Yoox Net-a-Porter (YNAP) offers a quick way to polish up the stock, which has underperformed peers in recent years. YNAP is losing money despite heavy investment. This is dragging down more attractive parts of the business, such as jewelry brands Cartier and Van Cleef & Arpels. "

• In what way was Richemont's investment in YNAP an illustration of corporate strategy? What was the strategic logic for Richemont to invest in YNAP? Was this related or unrelated diversification?
• On the surface of it, did the business logic makes sense? Was this solid corporate strategy? Could YNAP have been a good investment with different Richemont managers in charge, perhaps?
• What went wrong? Was this a case of flawed strategy formulation or only of flawed strategy implementation? Is it necessarily the case that diamonds and technology do not mix? Or can one only say this was true in the case of Richemont?
• After this experience, would you advise Richmond to attempt a different investment in relevant technology? Can Richemont really afford not to have some kind of operation like YNAP under its corporate roof? Why or why not?