How De Beers Responds to the Changing Market Environment

Shanghai University of International Business and Economics

Case Analysis Report

How De Beers Responds to the Changing Market Environment

Abstract

This case analysis focused on the marketing strategies and decisions made by De Beers, a leading company in the diamond industry, in response to the rapidly-changing marketing environment. These strategies were detailly analysed under a marketing environment framework, both including macro-environment and micro-environment, to explicate how the actors and forces affect diamond market and how De Beers adapts to these changes in order to maintain successful relationship with target customers.

Keywords case analysis, marketing strategies, diamonds, macro-environment, micro-environment.

Theoretical framework

Table 1 Micro-environment

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Table 2 Macro-environment

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1. The Environment before the Millennials

1. Changes in Macro-environment

1.  The Public Environment

For many decades, the diamond industry overlooked the bloody origins of its product. Because of the economic and political insecurity, rebel groups would hijack diamond production, thus demanding for the ransom. Often referred to as blood diamonds, these valuable minerals helped incite instability that resulted in the deaths of thousands of innocent people. The exposure of the bloody fact raised serious ethical problems and cast diamond jeweler in a negative light.