Review of the Strategic situation of DeBeer's Essay

Review of the Strategic situation of DeBeers - Essay ExampleIn view of the emergent challenges, DeBeers had to g back to the drawing board and strategize how it would remain relevant in the food foodstuff, having lost its monopolistic powers and its market share reduced to 60%. The image of the comp each had also been tainted for engaging in non-business informal and illegal practices when it was the market leader as it tried to wade off competition. The company had to change its schema from a buyer of a last resort to a more demand driven scheme that bore in mind the need for a good brand image. A good compendium of this strategy indicates that the company is still going to be a relevant contributor to the industry in the foreseeable future amid the challenges it faces. TABLE OF CONTENTS Title page 1 Executive Summary 2 Introduction 4 Body Analysis of business environment 6 Analysis of the Organizations strategy 8 Appraisal of the strategy 10 Conclusion 10 Reference list 11 W ord Count 12 DeBeers Diamond Dilemma Introduction Natural baseball fields are formed as a result of carbon atoms beneath the surface of the earth bonding in to cubic structures due to excess heat and pressure in a very hard transparent compound. With the discovery of diamond deposits in various parts of the world in the 18th and 19th century, root process begun prima(p) to the establishment of the diamond industry as one of the biggest economic sectors of most countries with diamond deposits (Hesse, R. W. 2007). Diamonds are sundry(prenominal) minerals and were initially not considered as commodities in the market like other minerals such as pig and gold. Natural diamonds have widely been used in making jewelry and other precious and coveted ornaments. One of the countries naturally endowed with diamond deposits is South Africa. Other countries with huge deposits of diamond include Angola, Botswana, classless republic of Congo, Russia, Australia, and Canada. Together, the se ven countries account for about 96% of international payoff of diamond and about 88% of the value of diamonds produced. Initially the diamond producing countries would export the rough diamond to other countries for bear on (Carlson, 2005). Diamond processing involves cutting and polishing the rough diamonds into precious items. India was the most dominant diamond processing country in the beginning, while the situations has now changed since most of the producing countries now have diamond processing plants locally. DeBeers, a diamond extraction company in South Africa has for a long time been the market leader in the global diamond industry, controlling about 80% of total diamond supplies and produced about 45% of global production of diamonds. As a market leader, DeBeers could control the prices of rough diamonds globally by regulating supply. In a bid to expand its market share, the company engaged in various practices that aimed at killing any competition. So9me of the compa nys practices were illegal in other jurisdictions and contributed to creation of a negative image of DeBeers on the global scene. From the early 1990s to date, the position of DeBeers as the market leader has been overtaken due to various factors that guide to establishment and growth of other competitors as well as the popularity of synthetic diamonds and the shifting of the diamond market to adopt the demand-supply structure as the main price determinants. The dissolution of the Soviet Union led to