SWOT MATRIX FOR DE BEERS GROUP

Positive Negative
Strengths Weaknesses
I
1. Robust brand image as well as brand 1. Inclination of customers choosing
N
T equity internationally. gold over diamond which makes it
E 2. Good marketing and branding making premium commodity for occasions.
R it a competitive brand. 2. Formidable competition from some
N 3. It’s among the best companies in other brands giving it a limited market
A mining, diamond industry as well as share growth.
L manufacturing and trading.
4. It hires close to twenty thousand
employees globally.
5. It is acclaimed for its links to global
celebrities and brand image
ambassadors.
6. Provides premium diamond jewelry
that includes rings, necklaces, gifts as
well as bracelets via fifty exclusive
stores internationally.
Opportunities Threats
E 1. Purchasing small scale businesses to 1. Government policies such as taxes that
X improve its brand position and market affect the jewelry industry.
T
share. 2. Economic fluctuations which forces
E
R 2. It has the chance to expand to global customers to regulate their expenses.
N market. 3. Trends in the jewelry industry are so
A 3. Tie-ups with business and corporate dynamic.
L associates.

External forces
Legal

Most nations have now developed and are very active in ensuring that profits from the
mining industry are passed down equitably with its citizens. An example is the Saudi Arabia
country which forced all countries to get into legal agreements with the government. Countries in
Africa that have diamond deposits like Namibia have compelled De beers to enter into
contractual agreements such as Namdeb so as to mind diamonds in the Namibian desert. This
among other aspects with respect to diamond mining have changed the way that De Beers
conducts its business.

Technological
Growth in technology such as synthetic diamonds have also compelled De Beers to focus
on Diamonds in a much different way and from that, it has begun investing some its resources to
the synthetic diamond industry, which are actually gaining a good share of the jewelry market.
Socio-Economic factors
It is also noted that the communities residing within the mining areas do not have enough
resources such as drinking water or electric power whereas companies that operate in its
environment are making multi-billions. This has led to De Beers being portrayed negatively by
the media which claim that it is not enough to just ensure conflict free diamonds. Within any
business that involves the use of natural resources, it is presumed that most of the manpower
would be sourced locally who in most cases are not affluent. Such industries must also engage
the community and try to better its living standards. De Beers is not accountable with its profits
thus giving them lots of negative publicity.
Political
Over time most nations that have huge mining operations within their boundaries have
realized that despite the fact that most raw materials were being mined from their boundaries,
most companies shipped them out for processing outside. Outsourcing some of the most
expensive labor which would have benefited the locals. Therefore most governments have
necessitated that a certain percentage of raw material processing be done within its boundaries.
This in turn has increase the cost of production for De Beers locking them out from cheap
processing zones like India.
Environmental
The climatic conditions within mining zones keep changing and are sometimes tough to
work within. With the emergence of resistant diseases as well as attacks from wild animals, it
becomes for workers in mining zones to work across the year forcing them to have constant
breaks which of course affects productivity levels. Such environmental factors make it hard for
De Beers to realize its yearly targets.