Presentation on

DE BEERS
A DIAMOND IS FOREVER

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About De Beer
 Founded in 1888 by Cecil Rhodes;
 Nicky Oppenheirner is present chairman
 Head Quarter :- Johannesburg, S.A
 Product: Diamond
 Industry: Exploration, Mining and trading of Diamond.
 Revenue: 6.8 Billion (2008)

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 Important Dates
 1880 - founded by Cecil Rhodes;

 1888 - controls 95% of the world’s diamonds;

 1967 -discovers large deposits in Botswana and forms Debswana;

 1977 - speculation begins;

 1982 - the bubble bursts;

 2008 – 40 % Share of raw Diamond; and

 2008 – the opening of three remarkable new mines, the launch of the Diamond Trading
Company Botswana and the launch of the Forevermark in Asia are all testament to this
quality.

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De Beer @ World Map

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Case in Brief
 In the year 1996 firm has achieved the 12 % turnover
growth and 13% profit growth after two decades.

 Eighty were bed years for diamond industry in both

side (demand & supply) due to Oil crises, the Gulf
War, political uncertainty in US, Europe as well as in
Africa.

 At the same time zirconium based diamond emerge as

a alternative to diamond. As well as loose talk by IMF
and World bank abut the back to gold standard hits
hard to De beer

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De Beer @ Threats from New
Porter Model competitors

Competition Customers’
Suppliers’ powers in the sector powers of
of negotiation negotiation

Threats from
substitute products

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Cont..

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Solitaire Diamond @ BCG
Matrix
M
A H
R I
K G
E H
T

G
R L
O O
W W
T
H

High Low
Market Share

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De Beer @ Ansoff Matrix

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De Beer @ SCA
Resources
 Own Mining;
 Experienced Hands;
Upgraded Technology

Differentiation Advantage Value Creation

Distinctive Competencies Ability to deliver diamond at
 Strong brand positioning;  providing low
low price;
 Price leadership; price Range of
 Team bound. rings, Ornament
Strong linkages B/W supplier and  Control over product mix; etc
whole seller,

Capabilities
Expertise in cutting diamond;
 Modern R & D facility;

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Recommendations:
 Cost cutting- in the field of operation (mining),
distribution channel:
 Generate new demand in emerging
economics, like India, China, (growing middle
class);
 Increase outsourcing of cutting & polishing,
 Concentric diversification (low cost version) of
carat; and
 ………………………….
 Now It’s YOUR TURN!

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