Debeers - Case

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

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

Those action acts like a monopoly but essentially, it is not. However, although the Sherman Act and Clayton act they both stated clearly that it is illegal in US if a firm tend to create a monopoly in any line if commerce, DeBeers still have chance to go directly in the biggest diamond consuming market- US. The reason is that DeBeers never sold diamond directly, they sold through Central Selling Organization and then CSO sell to unknown retailer. Therefore, there is no solid and direct evidence that DeBeers are trying to rig the

The diamond cartel shifts the market equilibrium to the shareholders’ preference – as shown in figure 3. This way a higher profit is made from the sales of diamonds because of the perceived scarcity. Rhodes was insightful to use the number of wedding engagements as a ballpark figure for the supply of diamonds (Bergenstock and Maskulka: 2001)

To buy expensive jewels or even be gifted one has always seemed ridiculous to me. To wear 10,000 dollars on your finger seems a bit gratuitous. Not only that but diamonds aren't that rare just hard to get and can be artificially made, unlike gold. For me, it has always been the symbol for why the trickle-down effect does not work. It is rich peoples priority to keep their money, to keep it in their family, not to pump it back into the economy. I have thought about the consequences of buying such an expensive piece, but I have never felt about the horrible process in how they are found bought and sold until watching the movie Blood Diamond (2006).

I believe that the three main points of this article were, how the value of the diamond came to be, why diamonds are expensive, and why Americans view diamonds with such a high standard.

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.

Diamonds, they are world’s most precious gems, and while they are a symbol of love, the truth to the matter is far from that.

It is difficult to look at a diamond for what it truly is: a rock. The over-glamorization of diamonds has spiked an increase in diamond mining activity in Canada. As the name suggests, diamond mining is the excavation of these gemstones through a series of processes. Canada’s climate in the north provides the perfect environment for diamonds to spawn, thus reinforcing Canada’s position as the “third-largest diamond producers in the world.” The internet reimagined many things into current, popular trends. Similarly, the simpleness of diamond-encrusted jewelry was not enough; it opened up the possibilities of diamond-embellished cars, handbags, chess sets and even TV’s. However, there are many steps to undertake in order to successfully excavate

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.

“Blue Nile’s vision is to educate its customer base so that customers can make an informed, confident decision no matter what event they are celebrating. It wants to make the entire diamond-buying process easy and hassle-free. In addition, an important part of Blue Nile’s vision as CEO Diane Irvine said in a recent webinar with Kaihan Krippendorf, is for the company to be seen as the “smart” way to buy diamonds, while saving 20%-40% more than one would in the typical jewelry store.” (Hoffman, 2010, p.1).

One of the greatest frustrations and opportunities in marketing is change—customers change, competitors change, and even the marketing organization changes. Strategies that are highly successful today will not work

It was the marketing campaign of the De Beers Group that have made diamonds as popular as they are now.

First, the reason why diamonds are desirable is because of the deep tradition of engagement rings and jewelry and how it associated with social status. Every girl is believes or imagines to have an expensive ring. Hence, the demand of diamond as jewelry makes this commodity a desire. Hence, many people are willing to spend money on the sparkle because of the social status and beauty the diamond provides than other basic necessities. Diamond is a global commodity because it is a not produced in every country and is

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)?