De Beers and the Global Diamond Industry
The De Beers case study brings out a company that struggled to fit into the dynamics of the diamond market. The company enjoyed a satisfactory growth because the over sixty years that it made and controlled the supply of diamond. De Beers achieved this by adopting a number of manipulative strategies. These strategies included preventing smuggling of diamond, aligning all producers, and preventing stockpiling of diamonds. The focus of the company was to quash all the attempts of competition that may arise from all quarters. However, this strategy seemed not to work any longer after the new mining firms started selling their products through the open market and not through de Beers' Central Selling Organization (CSO). The new competitors were attempting to polish and cut diamond outside De Beers' value chain.
Question 2
Describe the key mechanisms De Beers used to manage the value chain in the past? Did De Beers increase profitability for all participants, and did it increase consumer satisfaction above the levels that might have existed without De Beers'...
This can only be accomplished by first focusing on the entire value chains' unmet needs, and given the monopolistic approaches of De Beers in this industry, channel partners and retailers will have many unmet process needs that once served could turn into a significant competitive advantage. The initial visits to each export market would need to be on a regular basis to build trust with each member of the
This process, however, should be enriched with additions that would turn it into a fair international scheme and enforced by additional bodies. Reference List Associated Press. 2004. De Beers Pleads Guilty in Price Fixing Case. July 13th edition, http://www.msnbc.msn.com/id/5431319/ Crossette, B. 2000. Report on Angola Sanctions is Challenged in the UN. The New York Times, March 16th Edition, http://www.globalpolicy.org/security/sanction/angola/report2.htm De Beers corporate website, Accessed March 09, http://www.debeersgroup.com/en/Sales-and-distribution/Best-Practice-Principles/ Global Witness. 1998. A Rough Trade: The
All of these factors then contribute to the complexity of hiring senior international positions, and underscore the HR issues that are going to cause difficulties in the hiring process. De Beers' recruiting process is going to have to focus on those professionals in critical skill gap positions that are accustomed to being in an industry that has complex ethical trade-offs that need to be made, yet has the necessary initiative
products or service of your chosen organization, and two (2) key factors in the organization's external environment that can affect its success. Provide explanation to support the rationale. De Beers is the world's famous diamond company, established in 1888, with proficiency in exploration, mining and marketing of diamonds. More than 20,000 employees make contribution to the communities in which we work. De Beers carries out profitable business which helps the
Marketing De Beers; Segmentation and Target Marketing De Beers is a well-known diamond firm. Founded in 1888 by Cecil Rhodes, the company dominated the diamond industry for many years, with activities in the exploration, mining, sorting and marketing of diamonds (De Beers, 2013). For many years the organization has an effective monopoly, controlling the supply diamonds. While aspects of the operations and in control exercised may be controversial, coming to an end
Diamond Wars in Western Africa Throughout Western Africa, the quest for diamonds has taken control of many of people and affected the stability of economic and governmental status throughout the nation. The diamond mines have caused civil wars, which have resulted in many casualties over the years. Possibly the major cause of the diamond wars is human nature, as it is human nature that sparks the desire to own diamonds. Due to
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