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Debeers

In: Business and Management

Submitted By gitte
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SWOT Analysis
Next i’ll guide you through the swot analysis of De Beers. * Their strenghts are that they own their own diamond mines and retail shops. Because the business have been existing for over a 100 years, they’ve been able to gain a lot of expertise. * As they are market leader they also have a high turnover. * Their last big strength is that they have been able to present diamonds of high quality through the years.

Weaknesses: * They are specialized in only one product, so events influencing the product, influence the whole company. As an example we can say that the association with blood diamonds reflect badly on the whole company. * An other weakness is that the mining of diamonds is a very cost intensive process. * Last weakness is that is hard for them to find a complementary strategy, so they can gain market share.

A big opportunity arises for them, as there is an upcoming new market for their diamonds in the emerging economies; India and China. * Through their partnership with LVMH they’ve been able to increase their brand recognition and represent themselves al over the world. * The acquisition of new mines in Canada brought is another opportunity for the company.

Finaly we the threats for DeBeers company: * The diamond market is well known for its fierce competition: not only from competitors but as well as not being able to buy certain mines in countries as Canada and Australia. * Negative publicity as the association with blood diamonds have had a bad reflection on the company as well. * Recent laws and contracts are putting a big constraint to the operating part of the company. And last but not least there is the market of the synthetic diamonds which have been taking away customers.

Porter’s 5 forces
The first force is the bargaining power of suppliers: * this is

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