CASE STUDY of DEBEERS

The appearance of synthetic diamond in the diamond industry is a challenge, but the emergence of
the synthetic diamond market is not a concern itself, the genuine reason for this is the mixing of
synthetic diamonds and natural diamonds in the same volume of both natural and synthetic. It can
have a negative impact on the confidence of the entire supply chains in the jewelry industry.The
challenging position in which theDeBeerscorporation found itself, dated back in the early1990s.They
still dominated the market at the time, but the socio-political climate had altered, and several new
producers had entered the business. DeBeers reorganized its traditional operations and made various
adjustments, a new potential competitor to the natural diamond quietly emerged:laboratory-grow
nor, as DeBeers would call them, "synthetic" diamonds.People were buying lab-grown diamonds in
greater numbers than those purchased from the ground, and the trend was continuing. Their fear
was that the natural diamond business will meet the same fate as natural pearls encountered when
cultured pearls were first introduced in the early 1900s.Technological advancements have enabled
the manufacture of similarly stunning synthetic diamonds, which will likely divide the demand for real
diamonds. Rough diamond auctions are becoming increasingly popular as a means of purchasing
rough diamonds today.For a long time, DeBeers, a multinational diamond company, was the exclusive
source of the world's diamond supply. A number of factors contributed to the decline of their
power,including "industrial verbalization," US antitrust legislation, ethical concerns over conflict-zone
extraction, and the invention of synthetic diamonds. DeBeers' new strategy was based on three
foundations: renouncing stockpiling, focused on consumption, and centering on the company's image
to address this dilemma. New entrants (manufacturers), government control, and other external
factors joined the diamond industry, and this monopoly was eventually broken.For the past year, the
company was doing a good job of maintaining its leadership position in the market; however, the
current setting requires it re-evaluate its approach.It can be recommended for De Beers to carry
out an assessment of whether it is feasible to continue mining diamonds instead of producing them
in a laboratory.