De Beer By Patel

Presentation on

DE BEERS

A DIAMOND IS FOREVER

10/08/09

XIDAS, Jabalpur

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About De Beer 

Founded in 1888 by Cecil Rhodes;

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Nicky Oppenheirner is present chairman

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Head Quarter :- Johannesburg, S.A

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Product: Diamond

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Industry: Exploration, Mining and trading of Diamond.

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Revenue: 6.8 Billion (2008)

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Important Dates 

1880 - founded by Cecil Rhodes;

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

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1967 -discovers large deposits in Botswana and forms Debswana;

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1977 - speculation begins;

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1982 - the bubble bursts;

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2008 – 40 % Share of raw Diamond; and

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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.

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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.

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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 @ Porter Model

Suppliers’ powers of negotiation

Threats from New competitors

Competition in the sector

Customers’ powers of negotiation

Threats from substitute products

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Cont..

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Solitaire Diamond @ BCG Matrix M A R K E T

H I G H

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

Distinctive Competencies  Strong brand positioning;  Price leadership;  Team bound. Strong linkages B/W supplier and whole seller,

Differentiation Advantage

Value Creation

Ability to deliver diamond at low price;

 providing low

 Control over product mix;

price Range of rings, Ornament etc

Capabilities Expertise in cutting diamond;  Modern R & D facility; 10/08/09

XIDAS, Jabalpur

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Recommendations:  

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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! 10/08/09

XIDAS, Jabalpur

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