In: Business and Management

Submitted By 19891123
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In early 1990s, DeBeers ruled the diamond industry (while at one time, it produced 45% of the world’s rough diamond and sold 80% of total supply). Its market dominance enabled its Central Selling Orgainzation to choose whom to sell to, how much to sell, and at what price.(掌控钻石产业,掌握供应链,决定买家,销售量已经价格。)
First hit: Collapse of the Soviet Union(苏联解体,重要合同终止).
Second hit: Australian mine terminated contract with DeBeers(合同终止).
Finally: Emergence of Canada as a producer(加拿大大量的矿区都不受DEBEERS控制).
Additionally: Antitrust Act prohibited DeBeers’ sales in United States(因为触犯反托拉斯法被禁止在美国进行商业活动).
Publically: A public relations nightmare(公关危机,DEBEERS为了掌控供应链,曾经支持反政府武装)
Strategy focus: Supply-side. Controlling large portion of the diamond supply chain.(以往的战略更注重供应端)
Political: ()
Before the Kimberley treaty, DeBeers was used by some factions to have an indirect control of some countries in conflict area. With time past, DeBeers bit by bit lose his absolutely control position. More and more diamond mining were founded in the world. The output of rough diamonds got a significant decline from 90% to 10%. On one hand, de beers don’t have enough money to buy all of the mining, on the other hand, most of other country’s government prevents de beers to buy their diamond mining, in order to protect local economic.
DeBeers makes alliance with Russia, exploring diamonds with Tanzania, Namibia and so on. De beers put their manufacture factory in some country which has a very low labour cost, such as India. The biggest change is de beers begin to get in luxury goods market. In 2000, De beers and LVMH established a new company together. They are both pay 50% for the new company. De Beers supply rough diamonds and LVMH was responsible for design. This way means de beers can direct to sell diamond to normal customers.
De beers change several…...

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