SWOT Analysis of De Beers

De Beers is a diamond mining and trading British and South African multinational company. Cecil Rhodes founded the diamond mining and trading company in 1888. Today, we’ll discuss the SWOT analysis of De Beers; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.

The products and services portfolio of De Beers

• Mining diamond
• Trading of diamond
• Grading of diamond
• Inspection of diamond
• Industrial manufacturing of diamond

Owners of De Beers

• Government of Botswana 15%
• Anglo American Plc 85%

Statistical facts and figures of De Beers

• Annual revenue: 4.3 billion USD (2023)
• Employees: 20000
• EBIT: 72million USD

Competitors of De Beers

• Swarovski Crystal
• Blue Nile
• Cartier
• Bulgari
• Tiffany & Co
• Petra Diamonds
• Lucara Diamonds
• Debswana

The SWOT analysis of De Beers would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s De Beers SWOT analysis as a business strategy analysis example company as follows;

Strengths of De Beers

Some of the main internal strengths in the De Beers SWOT analysis example company as business strategy analysis are as follows;

Dominant Market Share

According to an estimate, De Beers controls approximately 85% of the global supply and distribution of diamonds. It shows the strong market share of the company in the global diamond market.

Large Network

De Beers has established a network of approximately 50 exclusive diamond stores of the company. The large market network amplifies the customer reach and accessibility of the brand to the retail end-consumer market without involving any middlemen.

Portfolio

De Beers offers a wide range of diamond products like diamond rings, bracelets, gifts, watches, necklaces, and other diamond artifacts. The large diamond product portfolio helps the brand to target and serve various segments of the customer market with diverse needs and requirements.

Recognized Brand

De Beers is a well-recognized brand in the diamond industry with a brand recall rate of 95%. The company has complete control over diamond mining, trading, grading, inspection, and industrial manufacturing diamonds. The strong brand recognition helps the company to earn the trust and confidence of customers.

Marketing

De Beers is highly proactive in running various types of marketing and advertisement campaigns for the promotion of its products and brand. The diamond brand hires the world’s leading celebrities and public figures as brand ambassadors for the promotion of its products and brand.

Strong Finances

De Beers has a strong financial position comprising of annual revenue of 4.3 billion USD in 2023. The solid financial backing helps the company to handle any type of market and supply chain disruptions.

Weaknesses of De Beers

Some of the main internal weaknesses in the De Beers SWOT analysis example company as business strategy analysis are as follows;

Premium Product

The sale of diamonds is very low as compared to the sale of gold and other luxury artifacts. In fact, diamond is a rare and highly premium element; and that’s why it is highly expensive. It limits and reduces its sales to a great extent; the company takes pride in offering an exclusive range of products.

Blood Diamond Controversy

The mining and trade of diamonds often involve slave labor, the worst working conditions, and the bloodshed of many innocent lives. In fact, the people working in the mines receive nothing for finding and mining the diamonds. It is a very sad and tragic reality of the diamond mining industry, and such controversies are jeopardizing the brand image and reputation of the company.

Opportunities for De Beers

Some of the main available opportunities in the De Beers SWOT analysis example company as business strategy analysis are as follows;

Market Expansion

De Beers should expand its diamond business into new regions, countries, and markets across the world. The global market holds great growth potential for the diamond market and it helps the company to further strengthen its brand value.

Portfolio Expansion

Along with market expansion, De Beers should expand its product portfolio by launching gold and other rare element products. It allows the company to amplify its sales and network by targeting new segments of the customer market.

Strategic Alliance

De Beers should develop strategic alliances and partnerships with other gold and diamond companies. It allows the company to further strengthen its market and brand value of the company with a centralized mining and diamond trading market.

Threats to De Beers

Some of the main potential threats in the De Beers SWOT analysis example company as business strategy analysis are as follows;

Tough Competition

De Beers is facing tough competition from other competitive diamond brands like Tiffany & Co, Bulgari, Cartier, and others. They all have earned a strong market share in the diamond market; their market presence is negatively impacting the sales of the company.

Regulations

The government regulations are very strict for the diamond mining industry. De Beers should be transparent about its entire supply chain and mining industry network; it would help the company avoid potential lawsuits for violating human rights standards.

Conclusion: De Beers SWOT Analysis Example Company |SWOT Analysis of De Beers |Business Strategy Analysis

After an in-depth study of the swot analysis of De Beers; we have realized that De Beers is the world’s leading retail chain diamond brand. If you are learning about De Beers SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; and external opportunities and threats as brand strategy analysis.

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