de beers

Topics: De Beers, Monopoly, Diamond Pages: 2 (411 words) Published: December 3, 2013
The biggest opportunity is the US market, which has the biggest consumption capability. Although De Beers indirectly offer diamonds to the US market, its profit is still divided by intermediaries, who are the key to avoid the strict US laws. The current transit sales methods have become an important barrier of financial increase for De Beers. A reasonable approach to avoid the US law could efficiently benefit the financial increase for De Beers in the future. Another opportunity is developing countries, especially China and India. These countries have been experiencing wealth increase and concept update. A good advertisement might affect new generation to accept the value of diamonds. Once the compulsory conception for diamond wedding has been created, combined with the increasing wealth during these potential countries, this opportunity must become a new growth point for De Beers. Finally, following the development of society, there is an increasing number of social problems needed to be solved especially in the diamond-producing countries. As a significant approach to create reputation, CSR (Corporate Social Responsibility) reflects more directly and clearly the contribution to society, especially for the consumers. Threats

The main threat is from the competition. New players, like Lev Leviev and Soviet, have made De Beers less powerful than before through reducing diamond supply to De Beers and directly market operating. “Cartel fails if noncartel members can supply consumers with large quantities of goods”. Another threat is global financial crisis. Although there is a manifest phenomenon that global economy have been recovering, diamond sale is seriously negative impacted by the purchase ability decreasing and purchase desire decreasing to consume this luxury. Strengths

Although there are so many challenges appearing in front of De Beers, De Beers is still the leading player of the global diamond supply. The advantage of resources and...
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