Todd Dallmann

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• Todd Dallmann
• Jason Fields
• Candice Godwin
• Chris Brock

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Aspects of DeBeers

• South African Mining giant that occupied a prime
  slot in the diamond industry throughout the 20th
  century
• Monopolized the mining and rough diamond
  industry, controlling around 90 of the worlds
  rough diamond share until the 1990s, along with
  45 in the mining sector

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Aspects Continued

• A horizontally integrated company despite an
  industry shift towards vertical integration
• In 2003, DeBeers had sales of 5.5 billion and
  earning of 676 million, all this with a market
  share dwindling to 45

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External Environment

• Growth of competition throughout the diamond
  industry
• Specifically vertically integrated companies such
  as Leviev and Benny Steinmetz, reducing the
  dependence on the DeBeers cartel
• Alternative sources and products

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Five Forces Model

• Threat of New Entrants
• Bargaining Power of Suppliers
• Bargaining Power of Buyers
• Threat of Substitute Products
• Intensity of Rivalry Among Competitors

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SWOT AnalysisStrengths

• Strong company history
• Strategic alliances throughout the industry
• Advertising campaigns
• Selling techniques

http//www.youtube.com/watch?v7CngH8KxJPg
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SWOTWeaknesses

• Unwillingness to vertically integrate
• Huge loss in market share from 90 to around 45
• Inability to maintain relationships with members
  of the cartel

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SWOTOpportunities

• By vertical integration, move into the polished
  diamond sector, and create a stronger presence in
  retail market
• Use strength of advertising to gain market share
  back in the United States
• Continue expansion into foreign markets

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SWOTThreats

• Growth of Competitors
• Technological advances in production of synthetic
  diamonds
• Various political constraints

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Main Problem

• End of DeBeers Monopoly

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Potential Strategic Solutions

• Enter synthetic market
• Focus strategy- not change anything, but focus on
  advertising to try and regain their market share
• Vertical Integration

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Recommended SolutionVertical Integration

• Enter the polished diamond sector
• Expand in the retail market
• Unleash over the top advertising campaigns to
  further enhance the DeBeers name

Frost Yourself