Pov Analysis Debeers

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POV ANALYSIS #1 De Beers Diamonds Corrin Wigren 10/10/11 Situation: The De Beers name has always been synonymous with diamonds due largely impart to the fact that in order for anyone to deal in the diamond business, at some point they will have to deal with at least one of our subsidiary companies, retailers or distributors. De Beers owns 43% of the worlds’ market shares of rough diamonds, but this is way down from the 80% we were at in the 80’s. The diamond demand is at the mercy of an extremely volatile market which is largely based off of the consumer’s disposable income and with the current recession and cutbacks in consumer spending, it is important that we find a way to maintain a competitive hold on the market. SWOT…show more content…
The third solution is to begin cultivating and competing in the Synthetic Diamond market. Synthetic diamonds are flawless, have no correlation in the public mind with “conflict diamonds”, they are easy to make and if manufactured for abrasive wheels, they can be grown in a few days in a lab. However the technology to grow a diamond big enough to be used for polished jewelry still is not quite there. The procedures and equipment are not yet time or cost effective. In order to enter the jewelry market with the right synthetics would cost the average consumer too much. Decision: We have decided to penetrate the emerging markets of China and India with a new line of luxury diamonds created with a special serial number and inscriptions bearing the name of the special promotional line that they will be a part of and the De Beers logo. To restructure ourselves as a private-type luxury brand retailer in the Chinese and Indian markets, we expect to harvest new growth opportunities and profit potential. Synthetic diamond creation is fine for small sizes to be marketed as saw blades and abrasive wheels but that sector represents only a small percentage of the need for diamond production. The cost is too high to manufacture a larger size diamond for the jewelry consumer. To continue on the path that we are on is not a valid option because the market, the demand and the consumer are all changing with the times. To stay stagnant against

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