SWOT Analysis of De Beers Group

Business 478
STRATEGIC ANALYSIS FOR Integration, RECOMMENDATIONS, and Implementation at:
DE BEERS


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SYNTHESIS OF THE SITUATION AT THE COMPANY
Strengths                The organization has the following strengths. Financial: the main financial strength of DeBeers is the reduced overhead costs. The company has invested in sophisticated machinery for the mining and processing of diamonds. Such reduces the expense incurred in mining the product. The company is also in a good financial position, and this reduces its chances of insolvency. It can maintain its employees by timely paying their wages and avoids debt by taking care of any financial issues that the company might face. ·      Managerial: the company has a reliable management team that is responsible for strategic planning. It is through such strategic planning that the company has been able to beat the competition. DeBeers has been in business for many years, which indicates the effectiveness of the management team. The management team has made DeBeers one of the best jewelry and diamond brands in the market. This has increased the company's market share, and in turn, its profitability. 
Weaknesses                The organization has the following weaknesses. Logistical: DeBeers' logistic weakness is the high cost of transporting mined gold to the processing plants. In some cases, the mining sites are far away from the various processing plants, which has made the company incur more cost in warehousing. Transporting the end products to different stores worldwide is also costly especially following the high inflation rates. Marketing: the main marketing weakness is a reduced market share for the company. A substantial number of people prefer to buy gold jewelry instead of diamond jewelry. This reduces the company's market share because it only has to target people interested in buying a diamond. The company is also facing strong competition from other brands that have priced their products lower than DeBeers. For instance, companies selling synthetic diamonds have already established a huge market share. DeBeers has just entered the market for synthetic gold, which creates a weakness for the company (Oxford Analytica, 2018). 
Opportunities                The environment presents the following opportunities. Foreign markets: The company has an opportunity to increase its presence in the global market. This would intern increase its market share and profitability, resulting in organizational growth. The Tie-ups with partners and corporates have increased DeBeers' market share in the foreign markets. The marketing strategies focus on marketing DeBeers products in the global market.·      Product line expansion: DeBeers the opportunity to acquire smaller businesses in the global market as a way of increasing its market share and building a strong brand. This would also expand the company's product line, thus making it the strongest brand in the industry. The company has launched...