Management stratégique

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Economic: The economic crisis such as the great depression that affected the diamonds market with lower the demand from raised the unemployment rate and declining the production. The second factor is the rising of the price of the diamonds in the market due to the raising of the diamonds production as a result of the exploration of new mines. An other factor is the discovery of diamonds in China and India and the increasing of sells in these countries.

Social: The behavior of the clients are changed due to the growth in the number of the population and also the value that people put on these diamonds that increase the demande. This demand are increasing also in China and India even if there was the economic crisis because this market became a largest market of luxury goods.

Technological: the fast development in the technology touched De Beers in several elements, the first point is the technological development touched all the market so even the competitors of De Beers that let them get new mines with good price. The second point is the marine mining and the creation of the synthetic diamond, all these points affected De Beers market and push it to end the monopoly.

Environmental: There are a kind of problem that affect the production like in Canada due to the extreme weather and with the marine mining that affect to the production with keeping a eye on the level of water in the lake and other challenges.

Legal: De Beers was founded guilty by the United Nation of sponsoring wars in Africa so the UN created a Kimberly Process certiciation to warrant that it will be no conflict diamonds and none financing rebels. And it was be also some government regulation and from NGOs that affect the diamond market.

- Porter’s five forces model

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- SWOT analysis

Strength

Weakness

Opportunity

Threat

The good reputation in the market with the big experience due to ancient position in the market.

The big investment in the advertising and marketing to get a value for the diamonds that was successful.

The size or the position of De Beers in the market that allow it to get several benefit. the joint venture with LVMH.

The substitutes such as the gold and the synthetic diamond that affect the sells of diamonds due to their cheaper price.

Problèmes with human right organisation due to the activities of extracting the diamonds in Africa.

The new competitors that affect the market of De Beers.

The opening of new stores in several regions such as middle east and Europe and also in china and India.

The joint venture with LVMH that allow De Beers to increase the experience in luxury of goods.

The new laws that affect and can affect the activity of De Beers.

The economic variation that which may occur such as the inflation and the umployment

the development of the competitors and the entering of new one.

The fast developing of the technologie that De Beers must follow in invest in the research and development.

- Changes in their values and vision

When De Beers wanted to do the re-invention it’s firstly talked about their vision in order to change the image of the brand to a nice one that care about the weak morals and the social responsibility. And their vision it was a big dream that allow them to unlock the economic value of their leadership position with the diamond pipeline in safe way. They also go for the forever-mark to verify the origin of all there diamonds and also inscribe by laser a number in each diamond. They work with the vertical integration that help them to maintain a good supply of the diamonds and maximise the benefits. Secondly it looking for the Kimberly process certification that allow the company to work with any conflict diamonds like for financing the rebel or another way to participate in it. And thirdly De beers began to work with the Supplier of choice that get them the transparency from the sigh-holders and to reduce the number of diamond of the sight-holders with this way it easier to have the control in their supplier. And fourthly De beers was present in charity and the contributions to communities. Example of De Beers values are Be passionate, Pull together, Build Trust, Show we care, Shape the future. They also care aboute the environment so they work with new tools that reduce element that affect the environment.Finally De Beers opted for joint venture with LVMH that was beneficial pour it with using the experience in luxury goods.

- Core competences

The core competencies is the strategic advantage that the compagnie face the competitors in the markets and to increase their profits. So for De Beers firstly is the experience that it get because De Beers was in the market since 1800’s. Secondly they had many partnership with government to can improve their production. They also did a good marketing to improve the sells of their product the campaigns was succesful and marked the sector. De Beers also did joint venture with one the biggest luxury of goods company that will only be beneficial.

- New business strategy developped

The old business strategy of De Beers that contain the monopolizing of the market was unsuccessful due to the change.So they opted for several new business strategy such as the transparency with it’s sight-holders with creating the supplier choice in 2003.

And also the joint venture with LVMH that allow De Beers to enter in the retail market and to have a direct relation with diamond jewelry. The other new business strategy is to develop it in the long term to have more demande due to it’s entering in new market.

And also the expansion in Asia because of the emerging market such as china and India and that allow to the company to get more benefits from this area.

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