News

De Beers

The paper is focused on De Beers and its status of a monopoly. At the beginning of the paper the current status and situation in the company are briefly discussed. Then a historical background and the origin of the company are described. It is followed by the steps undertaken by the company to gain the status of a monopoly and which keep it as such till the present moment. Then the basic principles which help the company to dominate in the world market are analyzed. After that the paper focuses on the main obstacles De Beers had to overcome on its way to the monopoly status and it faces nowadays. Finally, the paper is concluded by perspectives of the company and its possible future status.

De Beers is one of the well-known monopolies in the world that had gained its status quite a long time ago and nowadays occupies leading if not dominating positions in its niche of the market. Quite interesting is the fact that the company is thought by many, mainly non-specialists, as the company selling and producing cut diamonds all over the world. The latter is an obvious mistake that would be discussed later in this paper. But what may be really said without any doubts is the fact that the company is a monopoly which main business concerns diamonds. Whatever one may think about it the company exists well despite numerous limitations from the part of different countries, particularly the USA. Naturally, such a company cannot fail to be in the centre of attention of many specialists in the domain of economy, management, marketing, etc. In this paper a particular attention should be given not only to the current situation within the company and its position in the international market, but its origin and development of the company would be also discussed as well as the process of its transformation into a monopoly and the obstacles the company faced on its way to the world domination in its sector of the world market. Finally, an essential part of the paper would be perspectives of De Beers, at least in the nearest future.

De Beers: What Kind of Company is it?

At the very beginning it is extremely important to dispel the myths concerning De Beers as a company because it would significantly contribute to the understanding of the current position of the country and equally trace its development. It is not a secret that there are a lot of myths about De Beers. Probably, it is the result of an unprecedented and phenomenally long period of time the company is a leader of its sector of the market. In fact, De Beers is a leader of its industry practically throughout all its history that can be hardly compared to any other company in the contemporary world.

That is why it sounds very surprisingly if one estimates that De Beers is, for instance, a retailer or manufacturer of cut diamonds. It is a silly mistake that cannot be even taken into consideration. Nowadays, the company actually is the world leader in the mining and buying rough diamonds, some experts name its share as a buyer of rough diamonds about 70-90 per cent. As a result the company occupies a dominating position in this market and consequently may dictate its conditions to its few competitive companies and its customers. The company also may regulate and fix prices on its products, i.e. rough diamonds, and be a so-called arbiter of their prices. Naturally, a company that has interests in many countries, where any business dealing with diamonds exists, cannot be limited within geographical borders of one country only. So, De Beers is an international company operating practically all over the world with certain exceptions. As for its main activities, it basically buy rough diamonds from diamond mines owners and resell them to cutters.

What doest then indicate that De Beers is a monopoly? Actually, these are traditional factors, namely they are the size of sells (as it has been already mentioned De Beers sells about 90 per cent of world rough diamonds production), the company also sells commodity with no other substitutes, finally it restricts output and its responds to changes in the market demands. As a result, De Beers is considered to be one of the most successful monopolies of the 20th century since it manages to regulate prices of its products which are constantly rising. There are only few companies De Beers may be compared to, for instance Microsoft or Rockefeller’s Standard Oil, but the latter two companies are relatively young in comparison to De Beers.

Nowadays, the company works in many countries but there are particularly important regions like where the company has its mines and consequently strong interests. Republic of South Africa, Sub-Saharan countries, Siberia, Australia, Canada may be referred as vitally important regions for De Beers and they are regions where the company either works or has its own interests in.

college essays

Custom Essays

research papers

Aaron is a professional freelance writer at custom essays writing service: custom-essay.net He is also a technical writer, advertising copywriter, & website copywriter for Custom Essay Writing Service.

Article Source: http://EzineArticles.com/?expert=Aaron_Schwartz

Other Recent EzineArticles from the Shopping-and-Product-Reviews:Jewelry-Diamonds Category:10 Things You Should Consider Before Purchasing A DiamondWant A Piece of Luxury? Check Out Bulgari WatchesValue of Rubies, Part OneNew York Diamond District: Plentiful Diamonds in the Big AppleThe Beauty and Elegance of Blue Topaz JewelryA Guide To Jewelry BoxesProtect Your Traveling Loved Ones With Garnet JewelryChoosing The Right PearlHamilton Watches - A Century of Cutting Edge FashionAmethysts Gem Stones; Part OneChoosing The Right DiamondTips on Taking Good Care of a WatchJewelry Thru The AgesOpal Engament Ring - Gemstones Like Black Opals Make Great Engagment RingsThe A-Z’s on Getting Pierced

Most Viewed EzineArticles in the Shopping-and-Product-Reviews:Jewelry-Diamonds CategoryChanel Logo EarringsMan-Made Diamonds; A Buyer's GuideLab-Created Diamonds - Simulated Diamonds And Manufactured Diamonds ReviewReplica RolexCelebrities and Their Diamond Engagement RingsA Quick Look at Jewelry HallmarksHow Are Diamonds Made - Fake Diamond Manufacturing TipsGold Jewelry Hallmarking Secrets RevealedLab Created Diamonds Are Now Exceedingly GoodClean Sterling Silver Jewelry How To GuideMan Made Diamonds - Save Big Money And Avoid Mined Diamond ScamsDiamond Alternative Engagement Rings -Brilliance At An Affordable PriceThe Beauty and Meaning of BirthstonesThe Gift of Independence - Thumb Rings!Buying Quality Gold, Platinum, and Titanium Jewelry Online

 

This article has been viewed 60 time(s).Article Submitted On: November 09, 2006 /* */

Please Rate This Article: (1 votes, average: 5 out of 5)

11.13.2006
Link: http://www.jewelry-riches.com/new_de-beers_n876.html