De Beers is a multinational diamond company that has dominated the diamond market for over a century. Founded in 1888 by Cecil Rhodes, De Beers has grown to become the largest diamond company in the world, controlling approximately 40% of the global diamond supply.
However, De Beers has not always had an easy ride. In the early 2000s, the company faced a number of challenges that threatened its dominant position in the market. These challenges included the proliferation of synthetic diamonds, the rise of diamond mining companies in countries outside of De Beers' control, and the increasing popularity of alternative engagement rings, such as moissanite.
To address these challenges, De Beers implemented a number of strategic changes. First, the company invested heavily in research and development to improve the quality and cost-effectiveness of its synthetic diamonds. This helped De Beers to better compete with other producers of synthetic diamonds, and allowed the company to offer a wider range of diamond products to consumers.
Second, De Beers expanded its partnerships with diamond mining companies in countries like Russia, Canada, and Australia. This helped the company to secure a stable supply of high-quality diamonds from a diverse range of sources, reducing its reliance on a single geographic region.
Finally, De Beers launched a marketing campaign focused on promoting the value and symbolism of diamonds as a symbol of love and commitment. This campaign included partnerships with major retailers, the use of celebrities in advertising, and the creation of iconic slogans like "A Diamond is Forever."
Overall, these strategic changes allowed De Beers to successfully navigate the challenges it faced in the early 2000s and maintain its dominant position in the diamond market. Today, the company continues to be a major player in the industry, offering a wide range of diamonds to consumers around the world. So, these were the steps taken by De Beers as a solution to its challenges.
De Beers Monopoly Case Study Solution and Analysis of Harvard Case Studies
After introduction, problem statement is defined. And the buyer power is low if there are lesser options of alternatives and switching. As the most important objective is to convey the most important message for to the reader. Many of the plans they possibly knew of are now likely outdated, and their former contacts may not even trust them because they have spent the last decade detained by the American government. The case solution first identifies the central issue to the De Beers Consolidated Mines Ltd A case study, and the relevant stakeholders affected by this issue. This strategy proved successful for the company as market dynamics remained quite similar for several years. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.
MBA HBR : De Beers Group: Marketing Diamonds to Millennials Case Study Solution & Analysis
Stars are those strategic business units with high market share and high market growth rate. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. First are the retailers and the stores, which place the jewelry of DeBeers in their outlets and franchises, whereas the second type of customers are the final users of the products, they are those who pay the price to experience the value, which the brand has to offer against the price they are paying to purchase the diamonds. Problem Summary De Beers used to be a major player in the diamond market by producing up to 45% of all diamonds of the world. STEP 3: Doing The Case Analysis Of De Beers at the Millennium: To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. As the most important objective is to convey the most important message for to the reader.