De Beer By Patel

8/14/2019 De Beer By Patel

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10/08/09 1XIDAS, Jabalpur

Presentation on

DEBEERSA 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)

10/08/09

2XIDAS, Jabalpur


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Important Dates

1880 - founded by Cecil Rhodes; 1888 - controls 95% of the worlds 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.

10/08/09 XIDAS, Jabalpur 3


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De Beer @ World Map



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Case in Brief

In the year 1996 firm has achieved the 12 % turnovergrowth and 13% profit growth after two decades.

Eighty were bed years for diamond industry in both

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

At the same time zirconium based diamond emerge as

a alternative to diamond. As well as loose talk by IMFand World bank abut the back to gold standard hitshard to De beer



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Suppliers powers

of negotiation

Threats from

substitute products

Customers

powers ofnegotiation

Threats from New

competitors

Competition

in the sector

De Beer @

Porter Model


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Cont..



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MARKET

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Solitaire Diamond @ BCGMatrix

http://images.google.co.in/imgres?imgurl=http://www.indiaretailbiz.com/images/logos/big_bazaar.gif&imgrefurl=http://biznesstalk.blogspot.com/2008/06/big-fight-for-big-bazar.html&usg=__a5Vp30a6v2Wh3u6kkAZe_R4_NXo=&h=107&w=283&sz=19&hl=en&start=3&tbnid=w6oA07jUvzDFnM:&tbnh=43&tbnw=114&prev=/images?q=bigbazar&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://themoderatevoice.com/wordpress-engine/files/2009-february/question_mark.jpg&imgrefurl=http://themoderatevoice.com/category/society/education/teachers/&usg=__oVtWwChNn7hHiIU3IlA9lZo1HWE=&h=400&w=400&sz=9&hl=en&start=4&tbnid=h71jWJEKjXT5mM:&tbnh=124&tbnw=124&prev=/images?q=question+mark&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.londoncleaning.org.uk/images/big-Dog-Walkers.jpg&imgrefurl=http://www.londoncleaning.org.uk/dog.html&usg=__AnH5YLoACtQ8sbADqecv5GxXOF4=&h=342&w=351&sz=65&hl=en&start=15&tbnid=NPiV25lcYnpbBM:&tbnh=117&tbnw=120&prev=/images?q=dog&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://blog.pennlive.com/bizarrebazaar/2007/10/large_Cow.jpg&imgrefurl=http://harmless4life.wordpress.com/2008/04/12/&usg=__8xJdBMBU3F3xAPHEDF99lTirewU=&h=317&w=453&sz=79&hl=en&start=2&tbnid=MCTtFP_ugeqiNM:&tbnh=89&tbnw=127&prev=/images?q=cow&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.the-aps.org/education/sixstarscience/images/star_hg_clr.gif&imgrefurl=http://www.the-aps.org/education/sixstarscience/index.htm&usg=__XsQ6I2yphlTJWah4l-YXOlzYYAQ=&h=350&w=350&sz=98&hl=en&start=1&tbnid=dVZnU7Ol_pZeNM:&tbnh=120&tbnw=120&prev=/images?q=star&gbv=2&hl=enhttp://en.wikipedia.org/wiki/File:BCG_Matrix_with_products-small_png.png


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De Beer @ Ansoff Matrix



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De Beer @ SCA


ResourcesOwn Mining; Experienced Hands;Upgraded Technology

Capabilities

Expertise in cutting diamond;

Modern R & D facility;

Distinctive Competencies Strong brand positioning; Price leadership; Team bound.

Strong linkages B/W supplier andwhole seller,

Differentiation Advantage

Ability to deliver diamond atlow price;

Control over product mix;

Value Creation

providing low

price Range of

rings, Ornament

etc


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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 middleclass);

Increase outsourcing of cutting & polishing,

Concentric diversification (low cost version) of

carat; and .


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Now Its YOUR TURN!


De Beer By Patel

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