De Beers Diamonds
Situation: The De Beers name has always been synonymous with diamonds due largely impart to the fact that in order for anyone to deal in the diamond business, at some point they will have to deal with at least one of our subsidiary companies, retailers or distributors. De Beers owns 43% of the worlds’ market shares of rough diamonds, but this is way down from the 80% we were at in the 80’s. The diamond demand is at the mercy of an extremely volatile market which is largely based off of the consumer’s disposable income and with the current recession and cutbacks in consumer spending, it is important that we find a way to maintain a competitive hold on the market. SWOT Analysis: Strengths: De Beers mines remain the most consistent, reliable and considerable source of diamond distribution in the world, owns 43% of the rough diamond market and has unparalleled expertise in the diamond industry. Weaknesses: Low brand recognition and falling Market Shares. Opportunities: Emerging markets in China and India and the new Forevermark Diamond creating brand recognition. Threats: Synthetic Diamonds, emerging competition from Canada and other areas and the high cost of producing synthetics and abrasive wheels. During the last economic downturn it was the internationalization of the diamond trade that truly kept it afloat. Diamonds are an easily portable and liquid asset that can are bought and sold in most foreign markets and the same is true today. There are many emerging markets to be aware of; China and India are two to take a look at. With a newly emerging middle class armed with strong disposable incomes, the proper market research and advertising to encourage brand recognition, there is a whole untapped resource within the confines of China and India. Problem: The Problem is that De Beers has dropped its market shares from 80% down to 43% in the last 20 years. For a hundred years De...