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  • De Beers: BY Srikanth Kumar. T Sonu. T. Sekharan

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    De Beers was founded in 1888 in Johannesburg, South Africa by Cecil Rhodes and became the largest company and world leader in diamond mining, with $6.8 billion in revenue and 20,000 employees. For most of the 20th century, De Beers maintained a monopoly on the international diamond market through controlling supply, but changing consumer behavior, competition from other luxury goods, and legal issues forced them to change to a demand-driven business model in the 2000s.

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    De Beers

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    De Beers was founded in 1888 in Johannesburg, South Africa by Cecil Rhodes and became the largest company and world leader in diamond mining, with $6.8 billion in revenue and 20,000 employees. For most of the 20th century, De Beers maintained a monopoly on the international diamond market through controlling supply, but changing consumer behavior, competition from other luxury goods, and legal issues forced them to change to a demand-driven business model in the 2000s.

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    102 views5 pages

    De Beers: BY Srikanth Kumar. T Sonu. T. Sekharan

    Uploaded by

    srikanth2309
    De Beers was founded in 1888 in Johannesburg, South Africa by Cecil Rhodes and became the largest company and world leader in diamond mining, with $6.8 billion in revenue and 20,000 employees. For most of the 20th century, De Beers maintained a monopoly on the international diamond market through controlling supply, but changing consumer behavior, competition from other luxury goods, and legal issues forced them to change to a demand-driven business model in the 2000s.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 5

    De Beers

    BY
    Srikanth Kumar. T
    Sonu. T. Sekharan
    Introduction
    • Founded by Cecil Rhodes in 1888
    • Johannesburg, SA
    • Largest company & World Leader
    • Active in every category of industrial diamond
    mining
    • US $6.8 billion (2009)
    • Approx. 20,000 employees
    Monopoly
    • Monopolistic practices throughout 20th
    century
    • International diamond market manipulation
    • Single channel monopoly
    • “Central Selling Organization”
    • Stockpiled diamonds
    • Supply controlled business model
    End of Monopoly
    • Need for change of business model identified
    • Supply controlled model no longer viable
    • Changing consumer behavior & market
    dynamics
    • Shift towards other luxury goods
    • “Blood Diamonds” taint
    • Legal & stricter govt regulations
    Change of Strategy
    • Strategic review – Bain & Co.
    • Transition from supply controlled business
    model to demand driven
    • “Supplier of Choice” program
    • Focus on stimulating or driving demand

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