This paper corresponds to case study of DeBeers’s Diamond Dilemma in which I have performed PESTEL and Five Forces Analysis of DeBeers’s Diamond. DeBeers has two aims; to be the top company of diamond seller and make diamond available for everyone in the market. In the first part I’ve executed PESTEL Analysis on the DeBeers prevailing confronting position and focused on the significant troubles that DeBeers needs to ascertain its resolution.
PESTEL analysis refers to a framework that marketers uses to monitor external environmental factors that influence or has in impact on an organization (Dcosta, A., 2017).
1. Political: The Governmental consequences in the USA caused due to the warfare in Africa, diamonds begin to run by the destroyed area of Angola and Sierra and Russia which compromised control of DeBeers over mines, are among the significant troubles. The rebel forces in these countries used to finance their armed conflicts through forbidden trade of diamond caused prohibition of DeBeers business in the US market;
2. Economic: Production of Diamond in the world shows and upward trend which stressed the reality that DeBeers be abandoned in the US market. Other economical consequence of DeBeers include the company’s technique of bracing the diamond cost;
3. Social: Buying behaviour was changed due to non-wedding …show more content…
Competition in the Industry: The most difficult part in the establishment of a company is to enter a new market because the incumbents can make relatively high profits and the cost of entry is high. Because the new company have to pay relatively more by investing in capital. DeBeers could take the advantage of low cost production and could secure funds to stockpile diamonds so that the market could not be flooded. Moreover, DeBeers have the advantage due to control on mines and easy access to best raw material and technology, as said earlier CVD. DeBeers strong presence and current mining and political relationships can easily corner the
PESTEL analysis refers to a framework that marketers uses to monitor external environmental factors that influence or has in impact on an organization (Dcosta, A., 2017).
1. Political: The Governmental consequences in the USA caused due to the warfare in Africa, diamonds begin to run by the destroyed area of Angola and Sierra and Russia which compromised control of DeBeers over mines, are among the significant troubles. The rebel forces in these countries used to finance their armed conflicts through forbidden trade of diamond caused prohibition of DeBeers business in the US market;
2. Economic: Production of Diamond in the world shows and upward trend which stressed the reality that DeBeers be abandoned in the US market. Other economical consequence of DeBeers include the company’s technique of bracing the diamond cost;
3. Social: Buying behaviour was changed due to non-wedding …show more content…
Competition in the Industry: The most difficult part in the establishment of a company is to enter a new market because the incumbents can make relatively high profits and the cost of entry is high. Because the new company have to pay relatively more by investing in capital. DeBeers could take the advantage of low cost production and could secure funds to stockpile diamonds so that the market could not be flooded. Moreover, DeBeers have the advantage due to control on mines and easy access to best raw material and technology, as said earlier CVD. DeBeers strong presence and current mining and political relationships can easily corner the