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De Beers Case Study
Contents
1. ... Recommendations
Strategy Analysis – De Beers
1. ...
• Competitive rivalry – Primarily global because De Beers owns most of the closest diamond mines or is the sole buyer. ...
• European union concerns over De Beers new strategy
Community
• Concerns over conflict diamonds. ... De Beers is the only company that has started this on a large scale. ... De Beers has started this process through its distribution arm, DTC
3. ... It is important for De Beers to constantly search for new sources of diamonds world wide. ... Russia) diminishes demand for De Beers diamonds. ... All are currently owned by De Beers. ... De Beers is the largest diamond producer by value in the world. ... De Beers has a dedicated, motivated and loyal workforce which takes great pride in its work and company values. ... De Beers has invested heavily in R&D of new leading edge technology in many areas of the diamond business. ... De Beers and its partners have a large mineral resource base with large scale, low cost mines with a current mine expectation life of 20 years. ... De Beers has created a well known brand name that is ever expanding all over the globe. Developing these brands further through integration and differentiation is achievable for De Beers due to it’s strong financial position. ... De Beers currently owns or leases all of its South African mineral rights in perpetuity. ... All De Beers current producing mines are situated in Southern Africa. The risk for De Beers is that it is subjected to Southern African political risk and differences of opinion and interpretation with various authorities wit regards to valuation and export of De Beers’ diamonds from South Africa
3. ... In the past De Beers has raised debt to finance stocks and to exploit opportunities at difficult times in the diamond market through the existence of De Beers’ shareholding in Anglo American. De Beers’ ability to raise capital could be restricted and growth prospects limited without the portfolio. ... De Beers has developed education and prevention programmes. ... De Beers’ diamond purchase agreements with Russia and BHP have to be renewed and are therefore subjected to negotiations. Joint venture contracts tend to limit choices available to De Beers while uncertainties arise when contracts have to be renewed. ... Competitors such as Tiffany & Co (and LVMH) have become formidable through integration in the above areas, therefore De Beers needs to move more into this market and acquire the necessary skill and expertise to compete.
Approximate Word count = 1934
Approximate Pages = 7.7
(250 words per page double spaced)
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