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De Beers' recommended strategy - Case Study Example

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Summary
The company possess leading market share worldwide in the diamond industry (Bain and Company).
The most important strategy De Beers…
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De Beers recommended strategy
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Extract of sample "De Beers' recommended strategy"

De Beers recommended strategy De Beer is a privately owned family of companies which is engaged in diamond exploration, mining, trading, and marketing of diamonds (De Beers). The company possess leading market share worldwide in the diamond industry (Bain and Company).
Strategy recommended # 1
“The company can expand its business in new available markets in UAE, Europe and, Australia to expand customer base with a support of company’s strong supply chain and brand equity”
Strategy recommended # 2
“The company can acquire small and medium-sized trading and marketing firms in the emerging markets in attempt to increase market share and to minimize the competition”
Strategy recommended # 3
“De Beer can adopt new technology that is able to create synthetic diamonds which are different from diamonds created from natural resources in the attempt to bring in innovations and growth.”
Best Selected Strategy
The most important strategy De Beers should undertake first is strategy # 3 as the company’s business model to control and manage the amount of inventory to be sent in the market is no longer effective and the company needs to adopt new ways to regain its hold on the described business model and to stay competitive; now other diamond companies are able to sell diamonds competitively outside the De Beer’s central selling organization (O’Connell). Previously when a competitor tried to offer diamonds outside the De Beer’s central selling organization, De beer used to flood the market with similar strategy thus destroying the attempt of competitor pricing power so it was quite impossible for the competitor to operate outside the central selling organization.
Works Cited
Bain and Company. The Global Diamond Industry. 2011. 11 Jun. 2012 http://www.bain.com/Images/PR_BAIN_REPORT_The_global_diamond_industry.pdf
De Beers. About De Beers. 2011. 11 Jun. 2012 http://www.debeers.com/about-de-beers
O’Connell, Patricia. ‘The issue: De Beers’ multifaceted strategy shift.’ Bloomberg Businessweek. Jan. 2009. 11 Jun. 2012. http://www.businessweek.com/managing/content/jan2009/ca2009016_644338.htm Read More
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