Case Study:

It is important to highlight the key problems to any case for us to create a strong analysis to select the
best solution to the problem itself. In line with this, this study entitled DeBeers’s Diamond Dilemma
by McAdams and Reavis (2008) provided three main grounds for the collapse of the monopoly of
DeBeer’s in the 1990’s. Nonetheless, the combination of these obstacles and threats up to these days
was generating a "perfect storm" of sorts. Significant modifications had to be made to the company's
strategy, which had served it well for decades. (The economist, 2004)

•First, the collapse of the Soviet Union in 1991 which eventually gave a problem to DeBeer’s
inability to enforce contracts and eventually smuggled products onto the international market
causing prices to fall. (he Economist, 2004)
•The termination of the partnership with DeBeers’s of Australia's Argyle Diamond to market their
own diamonds. (The Economist, 2004).
•The emergence of Canada in the early 1990’s as main diamond producing serves as a further threat
to DeBeer’s position (Stein, 2001).
•DeBeers’s involvement in the “blood diamond” was exposed in a 1998 report by global business
which accused the company of operating with an extraordinary lack of accountability
which gives a vague impression to the company. (Stein, 2001)
•DeBeers was compelled to both hold back a considerable amount of its diamonds from the market
and acquire much of the surplus supply from these producing countries, sometimes at inflated rates,
in order to maintain its market dominance causing the fall of the shares of the company by the end of
the 1990’s. (Berman et., al, 2003)
Above time, DeBeers was able to "abandon its status as buyer of last resort" and adopt a strategy that
was demand-driven and brand-focused, with profits taking precedence over market dominance. (The
Economist, 2004)
As part of DeBeers' approach, they began hoarding diamonds, ceased buying diamonds on the open
market, and began selling diamonds solely from their own facilities. The next step is to establish a
solid rapport and relationship with its clients as a bridge to make DeBeers the "Provider of Choice"
and the primary supplier of diamonds in the eyes of the consumers. (New
Zealand,2007)Meanwhile, DeBeers reduced the number of its sight holders from 120 to 80 and
formalized commercial connections with those chosen through a written contract. As a result,
authorized sight holders were no longer required to buy whatever stones DeBeers gave them.
Rather, they demanded a specific package of stones based on sales and marketing methods
developed by DeBeers, and sight holders were really authorized to use DeBeers' forever mark,
a microscopic marking engraved into its natural diamonds that were natural, ethically traded, and
non-traded. In order to broaden and promote the excellent quality of DeBeers' products, a variety of
non-wedding advertising campaigns were produced, including the "Celebrate Her" campaign, which
invited men to display their love for their significant other by purchasing a three-stone
diamond. (Cadieux, 2005). As a result of this strategic imperative, the organization clearly
displayed its offering in response to client demand.This will take up advantage to the company even
up to these days and even for the other company as well. Step up and expand the business and start
negotiating with other businesses who do have the same vision as yours to fully present to the market
your quality product. Meanwhile, if the business goes well, it is important to build a bridge of
connection to the customers since they are the real resources of a businesses and company’s wealth
and development.