Question

Critically evaluate the strategic options for growth of DeBeers making use of the marketing models highlighted in the course materials. Justify your position taken. (Minimum 2000 words)

Answer 1

Cecil Rhodes founded this diamond business   named Debeers . There are still limited players in the industry but the companies like Alrosa , Rio Tinto, BHP billiton etc. Gave a tough competition to DeBeers but Debeers survived with its eminent market stratgies. Theses are as follows:-

1) at one time it controlled 45% of worth of world's diamond and sold over 80% of all diamond.  

2) initially they folowed strategy of supply control . Apart from mining its own bought diamond from other producers .

3) while in consumer marketing  

a) they brought the concept of diamind engagement rings .

b) they brought the concept branding their diamond costing their diamonds 10to 15% more than other diamonds in the industry

c) they were encouraging men to gift diamonds on non wedding occasions .and carried out vaious campaigns .

4) mix stretgy if bringing synthetic diamonds which are eco friendly ( they are made in lab so they dont require clearing of forest or natural habitat) so it carries lot of of benifits to the company and consumers. They are

a) the product is upto 2 careets which are actually the same as of original one

b) low cost of production means low price than natural one

c) they started doing the campaign spreading the diifrence of natural and synthetic which also catered to employment  

d) they were basically targetting the young customers whi are about to get married , giving grand level of promotional activities in at wedding halls.

5) they gave importance vertical intergtaion , by moving to value' added retailing and partnership with premiums fashion brands.

6) thay stared focusing more on respostioning itself as supplier of choice amd not the only supplier