De Beers Consolidated Mine Ltd.

For centuries, diamonds have been regarded as one of the most valuable commodities in the world and the industry has evolved into billions of dollars. At the top, De Beers dominated the entire industry worldwide, from exploration to retail selling. However, it has a reputation of a monopolist, where it influences supply and demand. The two critical factors that De Beers carefully maintained throughout the century to remain in monopoly was to create the illusion of the scarcity of the diamonds and to keep the prices high. Realizing the benefits of the cooperation and the dangers of the oversupply, most

We see clearly in the movie how the factors of production is used: land, labour, and entrepreneurship. Land is the resource where diamonds are found, and in Blood Diamond we see how the RUF uses a form of alluvial mining and open pit mining on the land. The men would find the diamonds by digging and shoveling in rocks that are eroded by rivers and streams. The result of this is disastrous to the land because of the enormous amount of soil that is removed to obtain the diamond. Also wasted rocks from the mining can leak harmful substances back into the water. Blood Diamond did an admirable job at depicting the realities of how

How many natural diamonds are for sale at the moment? Note the wide array of sizes and prices of the diamonds. In what sense is there competition among the sellers in this market? How does that competition influence prices? In what sense is there competition among buyers? How does that competition influence prices?

Diamonds bought very frequently. Diamonds are the ultimate luxury. A cut in price wouldn't increase demand very

First of all, despite the declination of DeBeer’s dominance on the diamond’s industry, it still is the number one diamond manufactures in the world who has good reputation and extraordinary impact. If they can do more on advertisement, to let more people know about their brand, this would definitely increase their sales. A statistic shows that consumers are willing to pay 15% premium for the same stone for DeBeers which shows people are still tend to trust the brand.

Bluenail Company article , this company is a littel bit simmlar to the Dee Beers story purpose. It is to educate the readers and the buiers about the quality of Diamonds and to pursuade them to buy, and convencing them by giving them the chance to know theier favoraite type of diamond and its color , the ring size chart of their fingers, and the unbeliveable

This essay supports the statement “The price of diamonds is too high”. Diamonds have always been presumed to be rare. They have been present in history as a symbol of wealth and luxury as they were so difficult to find. Nowadays diamonds are mined and are found all over the world but they are sold through a cartel. (Epstein 1982) A cartel limits the supply of a product in order to keep prices high and to limit competition. (South African Pocket Oxford Dictionary: 2002) This raises the question of whether diamonds are actually worth their price. This essay focuses on the origins and the basic theory behind the diamond cartel; the early operation of the cartel; De Beers’ strong market campaign; determining De Beers’ current

25. How did the De Beers cartel try to maintain control of the price in the diamond market? How was this control undermined? Briefly discuss.

Also, there needs to be a more defined definition of a blood diamond (“War on Blood Diamond Trade Loses its Lustre in Age of Digital”). The Central African Republic fails to realize that the diamonds being bought come from instances of executions, child labor, as well as looting (“Companies must Not Profit from Blood Diamonds”). Obviously, Africa is rich in minerals, which is its curse (Ainger et al.367: 9-27). Consequently, there has been 50 wars, fighting for control of resources. Political, social, and economical factors matter in these resource wars (Ainger, et al.367: 9-27). Recently, the Kimberly process fails to uphold in central Africa, Cameroon. As a result, Cameroon is flooding with conflict diamonds because of mediocre leadership along with corruption (“Conflict Diamonds from CAR Entering International Markets Via Cameroon”). This may be the effect after the African Republic was internationally embargoed in 2013 (“Conflict Diamonds from CAR Entering International Markets Via Cameroon”). Therefore, “As the Kimberley Process visits Cameroon, it must take action immediately and demonstrate to companies, retailers-and most importantly to consumers-that it is able to stop the flow of conflict diamonds," Offah Obale. Presently, the diamond industry is in a bit of a mix as the Kimberly process is expected to help countries receive clean diamonds in order to restore international market relationships ("War on Blood Diamond Trade Loses its Lustre in Age of Digital"). Now, it is known that the common life-span is estimated to be 34 years old in Africa, Sierra Leone. Also, “We have always maintained that the conflict is not about ideology, tribal or regional difference... The root of the conflict is and remains diamonds” says UN ambassador of Sierra Leone, Ibrahim Kamara. At the present time, there is a cease fire in the Republic of Congo since

The economic principals discussed in this article are mainly focused on the fact that until 2000, the diamond industry was a monopoly. A monopoly, as defined by our book, has one firm, a unique product, and the entry into the market is blocked. The owner of the diamond industry, Cecil Rhodes, created this by buying all the available diamond mines. He started in 1870’s by buying the mines found in South Africa. As time went on,

The De Beers Group of Companies established itself in the diamond industry in the late 1800’s and it was only a matter of time until De Beers owned virtually every diamond mine in South Africa. Diamond distributors joined up with De Beers because of similar interests: they wanted to create a scarcity of diamonds, so that high prices would follow. Eventually, De Beers would establish exclusive contracts with suppliers and buyers, making it impossible to deal with diamonds outside of De Beers. For the remainder of the 20th century, the business model was the same: A subsidiary of De Beers would buy the diamonds and De Beers would determine the amount of diamonds they wanted to sell, and at what prices. In turn, De Beers funneled all of the

The story of these infamous diamonds all started with a fifteen year old who found a diamond in his father 's arm. The diamond business started in 1935 when “De Beers” took all control over dining prospects in Sierra Leone. De Beers are a group of companies has a main role in the exploration of diamonds, as well as diamond mining, diamond retail, diamond trading, and industrial diamond manufacturing sectors.This group was founded in 1888, and they are responsible for the problems Sierra Leone is facing today. These diamonds can be found in volcanic pipes. Diamonds are a pure form of carbon in a transparent state. Diamonds have always been a sign of wealth. Historically kings and queens were known for wearing these. Over time many people began lusting over them.

Have you ever glanced at your ring finger and admired the beautiful diamond on it? Now have you ever wondered where that diamond came from or how many lives were affected just to get it? Those are the questions you should ask yourself the next time you visit your local jewelry store for a visit. People worldwide should make an effort to stop buying conflict diamonds. They are funding wars in Africa everyday. Workers working in the mining business are in a danger zone. Innocent men, women, and children are getting caught in between the conflict and are being forced to work. If people would stop buying conflict diamonds from conflict areas, Africa would be a better and more productive place.

Rio Tinto had advanced marketing capabilities. Rio Tinto had favorable relationships with the British Government when it entered to uranium development in the middle of 1950. The marketers have good relationships with Rio Tinto due to the good way negotiation style of the company. The company has strong bargaining power and also good relationships with the governments. Rio Tinto approached the private sectors too to collaborate on mining with them. (Sugawara, 2012). Rio Tinto realized that matching the Ores to the right buyers is one of the marketing skills of the

Color. Clarity. Cut. Carat Weight: These four words are what jewelers in the industry use to determine the monetary value of a diamond. However in 1947 De Beers found a way to not only boost their sales but also make a psychological necessity out of this sparkly stone, and it all began with four vastly different words, “A Diamond Is Forever” (Frances Garety), and accompanied by phrases such as “Isn’t two months’ salary a small price to pay for something that lasts forever (N.W. Ayers)?