CASE STUDY: THE DEBEERS DIAMOND Dilemma

It is based on what I've read, so one of the issues facing by the debeers is The dilemma that DeBeers
faced came down to whether it should enter the market with its own synthetic diamonds or whether
it should have faith that synthetics would be a passing fad and that, at the end of the day, consumers
would always prefer buying what, in DeBeers’s mind, was the real thing. Complicating the company’s
dilemma, however, was the fact that it was in the midst of trying to remake its image, tarnished from
decades of anti-competitive business practices, to one that was demand driven and focused on brand
development. While DeBeers at one time produced 45% of the world’s rough diamonds and sold 80%
of total supply, by 2007 it was producing 40% and selling just45%.However, the introduction of
synthetic diamonds in the market, DeBeers has been facing multiple threats.DeBeers intends to
stay a competitive seller in the diamond market and make diamonds available to everyone by using
the enhanced techniques and maintaining a high level of diamond quality. DeBeers is currently
attempting to eliminate synthetic diamonds in order to maximize market share. The company
has been dealing with government consequences and conflicts. DeBeers may suffer as the
costs of diamond gross decrease in sales. The mining communities have been causing problems for
the company.Although the strategy of establishing a dominant position over diamond mining
has helped to create nice in the market, it has also attracted legal issues for DeBeers and the way it
does business. The emergence of synthetic diamonds has been a game changer in the diamond
industry, allowing DeBeers to reconsider diamonds. In the current scenario, DeBeers maintains its
diamond price in line with market pricing rather than establishing a monopoly on diamond
supply.Although there has been a market demand for synthetic diamonds, the demand for
natural diamonds will never go away in the minds of customers. The most major benefit of
synthetic diamond is its lower price, which may influence a consumer's purchasing decision. But even
so, rather than restricting customer choice, the best way for businesses to remain loyal in the eyes of
their customers is to develop the market. A natural diamond is priceless in the eyes of the customer,
whereas a synthetic diamond will meet the standard.