“A Diamond is forever.. but power may be not” D E B EE R S C A S E S T UD Y A Cash Cow Industry An estimated US$13 billion worth of rough diamonds are extracted every year Extracted diamonds can be used for industrial purposes or in the luxury sector (gemstones) Diamond jewellery is worth more than US$72 billion per year (very high profitability) The biggest slice of the cake A giant’s first steps Founded in 1888 in South Africa by Cecil Rhodes‚ De Beers quickly obtained a dominant
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Jewellery Diamond Encrustations British Crown Jewels Koh-I-Noor diamond: (“Mountain of Light”) One of world’s largest diamonds The Cullinan Diamond: largest diamond rough ever found Hope Diamond Deep blue colouration Lack of internal flaws Shows VS1 clarity First sold to King Louis XIV Top ten diamonds by size Diamonds >10 carats = exquisite Diamonds >50 carats = possession of museum/wealth people Diamond >199 carats = not sold‚ history Epic diamond = smaller diamonds of intense
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in the diamond industry. Discoveries of diamonds in the late 1800s were pioneered in South Africa‚ in which DeBeers held a heavy monopoly over. Since then‚ they have cultivated an impressive track record and leadership position. The Central Selling Organization (CSO) controls and regulates the flow and sale of rough diamonds‚ and was acquired by DeBeers in the 1930s. Due to a stable economy both locally and internationally‚ DBCM was the world’s largest producer and distributor of diamonds in late
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Two main vulnerabilities of the diamond industry: price of diamond linked to supply and value diamond linked to belief that they are rare and therefore special‚ and thus suitable token of sentiment. DeBeers exercised monopoly power by effectively controlling production and distribution of diamonds‚ thus controlling supply and ability to control pricing. When the market started to shift as other sources of diamonds were discovered‚ DeBeers still held an advantaged position as they had sole control
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0.49 6.67 3.46 0.62 FY10E 6.07 2.73 8.43 10.65 0.44 5.31 2.37 0.63 FY11E 6.08 2.78 8.99 11.15 0.40 4.53 2.07 0.63 SYNOPSIS Gitanjali Gems is one of the largest integrated diamond and jewellery manufacturers and retailers in India. The company became first to produce the world’s smallest heart shaped diamond (0.03 carat) and developing some 25 patented facet patterns. Gitanjali Group‚ the jewellery maker and exporter‚ is planning to invest Rs 400 crore in next 18 months for expanding its
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Introduction The brilliance of diamonds and its rarity make the gem highly desirable. Although diamonds serve no significant usefulness to an ordinary person‚ in a lot of cultures‚ diamonds are not only fashion accessories but it also symbolizes a person’s standing in society and financial noteworthy. Diamonds are not manufactured‚ they are gift of nature and mining diamonds in the depths of the Earth’s mantle requires a complex and expensive process. The famous slogan‚ “Diamonds are forever” solidifies
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quantities sold worldwide. However‚ even in Africa other obstacles appeared. While Angolan and West African output were being diverted to other channels‚ the concerns about conflict diamonds – reaching their peak with outbursts in Angola through the 90s – also damaged De Beers’ image and only made it more difficult for those diamonds to be sold through the CSO. Finally‚ pressure from some African governments (Botswana and Namibia‚ for example) inadvertently or purposely
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different properties. The allotropes of carbon are diamond‚ graphite‚ fullerenes‚ carbon nanotubes‚ carbon nanobuds‚ amorphous carbon‚ glassy carbon‚ lonsdaleite‚ and carbon nanofoam. Diamond is the best know allotrope of carbon. It is the hardest known natural mineral which makes it very rough. In the structure of the diamond‚ each carbon atom is covalently bonded to four other carbon atoms and has a tetrahedral shape‚ meaning it is a nonpolar molecule. Diamond has a very melting point and has a density
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Case Study - Blue Nile‚ Inc. Zequn Fan (Ford) Executive Summary Google is a well-known technology giant in the IT industry. Motorola is a well-known manufacturer of mobile devices. Blue Nile‚ Inc. is the largest online jewelry‚ mainly diamond‚ retailer around the world. Their business model is pioneer in the industry. However‚ Blue Nile found itself stuck in the middle‚ because of Tiffany’s and DeBeers’ occupation of high end market and Amazon’s and Overstock.com’s occupation of low end. In order
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Costco is posing huge competition not because of cheap cost and good quality but also good return policy. Customers can get bigger carat diamonds of next to similar quality at half a price; the only difference is the brand and bi big blue box packaging. Supplier Power a) Few diamond suppliers in the world‚ so they have power to dictate prices. b) Moreover they do diamond cutting and polishing on their own Buyer Power a) Buyers have high disposable income b) They feel connected with the brand c) Able
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