De Beers Case Study

Case Study 2 Jason Jerew PEST Analysis Political almost significance troubles for De Beers are receivable to government consequences in the United States due to adamant warfare in West Africa, diamonds are commencing to run by the destroyed areas of democracy of Sierra Leone as well as Re popular of Angola, along with in Soviet Russia, mines are comprising controlled topically as setback to together with De Beers. Economic With a possible increase in diamond gross sales anticipated in the United States, stresses the fact that De Beers be abandoned in company merchandising as well as gross sales endeavor.Diminish in costs can severely smart De Beers as well as the whole diamond manufacturer. Another riddle De Beers is facing is company technique of bracing the diamond cost. Technology By marketplaceing for diamond merchandisers by the Central marketing company in Greater London, as well as ascertaining the supplying of diamonds provided for these merchandisers, De Beers assure what stones participate the marketplace at what cost. This exclusive dispersion line has comp burn upd at the nerve center of company power to determine the diamond marketplace. SocialThe symbolization of mash with diamonds has been in play for years. With the supply growing diamonds have continued the rise of uncommon and appreciated goods. Legal Alterations to lawmaking. This might affect work, approach to stuffs, quotas, resourcefulness, consequences or exportations, revenue and so forth. Environmental What is passing get through with reference to bionomic as well as environmental consequences. Numerous of these components would be sparing or sociable in nature. SWOT Analysis Strength 1. De Beers employs just about 20,000 wad around the world? 2.It is one of the biggest companies in the diamond industry, mining, commerce and manufacturing? 3. Offers amplitude diamond jewelry which include necklaces, rings, bracelets, gifts etc. through 50 exclusive stores globally? 4. S trong home run name and brand honor globally? 5. De Beers is known for its association with international celebrities as brand ambassadors? impuissance 1. Strong competition from other brands means limited market assign growth? 2. Preference of people choosing gold over diamond, making it a premium crossway for occasions Opportunity 1. It can increase its front end in global markets? . Acquisition of smaller businesses to increase brand order and reach? 3. Tie-ups with corporate and business partners Threats 1. Trends change quickly, 2. Economic fluctuations mean people decrease their spending? 3. Government policies, taxes etc. also affect the premium jewelry segment Five Forces Substitutes 1. No substitutes for diamonds 2. Cultural history 3. superior cost of entry 4. Social Issues and status New Entrants 1. Substantial brand name 2. High cost of entry 3. Existing mining relationships 4. opening to new mines 5. Control of output Customers 1. No substitutes for diamonds . C ustoms and traditions 3. Quality of product 4. Not a necessity (luxury item) Suppliers 1. Controls output 2. Alliances 3. Cash on manner of speaking Competitive Rivalry 1. Strong brand 2. Trust already create with customers 3. Expertise 4. Control of output De Beers lost its grip on the market when the Soviet Union collapsed, which weakened their partnership, huge mine broke off from the covenant in Australia, new mines in Canada were discovered, and the rise of popularity with synthetic diamonds. De Beers immovable to stop trying to control the market and instead focus on using its brand and marketing.De Beers devised a marketing planned that included public relations, and direct advertising in print and radio. To try and maintain its steer role in the market De Beers carried out monopolized practices. The company used several(predicate) methods to exercise this control over the market First, it convinced independent producers to inwardness its single channel monopoly, it ov erloaded the market with diamonds similar to those of producers who refused to join the cartel and last, it purchased and stockpiled diamonds produced by other manufacturers in order to control prices through supply.