De Beers

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Introduction        

1/ what marketing and business strategy was followed by De Beers over the course of their history to be unique from competitors? As a guideline following topics should be covered        

The main stages:        

Focus on identity before and after 1999        

De Beers strategy 1990’        

Value chain:        

2/  What were the changes in De Beers´ strategy at the end of the 20th century (late 1900´s) and the drivers of that change? Assess and evaluate this strategy compared to those followed in the past. As a guideline, at least following topics should be covered:        

Pestel analysis        

POLITICAL        

ECONOMIC        

Social        

Technological        

Environmental        

Legal        

Porter´s five forces        

Bargaining power of new entrants (low)        

Bargaining power of suppliers (low)        

Bargaining power of substitute Product        

Bargaining power of customers        

Competitive rivalry        

SWOT analysis        

Threat        

Opportunities        

Strength        

Weakness        

Core competences        

∙ New business strategy developed        

Challenges        

3/Evaluate De Beers’ joint venture with LVMH  Joint venture synergies between De Beers and LVHH        

4/What are your recommendations for De Beers?        

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Introduction

After being the undisputed leader in the extraction and distribution of diamonds in the 20th century, De Beers has been subjected to many events having upset its hegemony.

Among the most important are the criticisms of anticompetitive practices (price fixing), supply control on the basis of demand and the termination of certain contracts with major producers such as Argyle.

Nevertheless, the company benefits from a solid structure which, despite the loss of its leadership, has adapted to its environment and continues to prosper. We will analyze in the first place the environment in which De Beers evolves. In a second step, we will see which strategic axes the company could develop in order to maintain or expand its presence on the market. To conclude, we will see the implementation of an action that would allow De Beers to develop its image on an international scale.

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1/ what marketing and business strategy was followed by De Beers over the course of their history to be unique from competitors? As a guideline following topics should be covered

The main stages:

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          Focus on identity before and after 1999

De Beers strategy 1990’

Leader in a monopolistic market structure “empire”, concerning the market economy De Beers control of the upstream stream downstream, also limitation of supply and Stimulating demand.

The strategy that was followed by De Beers at the beginning of 1990s take possession of the majority of the mines in the world , to preserve this monopole the CSO was created to take control of the most important mines that exist in the world and they impose prices to the world by making the concepts if demand and supply to fix the price they want

The market of diamond was facing a big crisis in the middle of 1990s caused by the discovery of new diamond in new different places in the world. To provide diamond with special sign love romance, De Beers start a new marketing strategy campaign with a new slogan : diamond is forever

The campaign operation goal was to promote the a good image for product by convincing customers of the no limit durability of diamond, you can keep the real good quality diamond all your life

De Beers control the range of supply to maintain a high price in the market; the same stones was maintained in the market. Main fixed goals  the first one is the creation of De Beers consolidated mines for taking the control of the diamond world trade with fixing prices.

Value chain:

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Infrastructure:  

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