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De Beers: A Study of Strategic Marketing

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The diamond industry has built its enduring benefit by being present in major countries worldwide with a homogeneous offer. In global industries, competition in a country depends on the competition taking place in another country; the competitive advantages are transferable from one country to another. The reference market is concerned by the world.

Synthetic diamonds are sold at prices 10% to 50% less than natural diamonds. Their annual output reaches 3 billion carats (600 tons) and an amount of one billion dollars, compared to 130 million carats (26 tons) of mining. The production of synthetic diamond is mainly for industry. It uses much the diamond for its hardness and precision that it confers. The diamond is prized for it in ophthalmology. But all diamonds are not used in jewelry and the slightest defect can displace a stone path of the jewelry. It will then be used for industry.

Natural diamonds are a very scarce resource, located in geologically unique. If the diamond mines are now present on every continent, some areas are particularly exploited Canada, Australia, South Africa, Finland, Russia, etc.

Meanwhile, investments are very important materials, machinery, etc. In addition, diamond producers are constantly looking for new deposits. The industry is thus highly concentrated geographically in activities to reduce costs through economies of scale. And has a range of international clients.

By segmentation, we guess that the strategic business areas correspond to the De Beers diamond marketing steps natural and synthetic. To demonstrate this, however we will resume the analysis of the segmentation method studied. The following document represents the strategic segmentation result.

The market for the diamond jewelry industry will experience sustained growth for the BRICs: the growth rate of China will be 10% per year. However, global growth should be 3.6% per year until 2010. Thus, consumption, dependent on the general economic environment, is unlikely to absorb the overproduction that should exist from the year 2008. The lure of diamond jewelry will be more inclined towards small diamonds.

Tags: DeBeers diamonds, diamond industry, differences between diamonds, availability of diamonds

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