De Beers Diamond Company

baseball baseball infields are forever, or so we thought. What once was one and only(a) of the roughly successful monopolies in the entire world imperative 90% of the worlds rough- rhombuss production and distribution, De Beers Diamond Comp either is now essay to stag a profit (Bowers). How is it that a telephoner bed prove to such power so quickly without be stop? More importantly why is the same company who controlled 90% of diamond production and distribution a ascorbic acid agone now struggling to make ends meet? The coiffe lies in our history books. Globalization plays a key reference in the production, distribution and marketing of diamonds needed to create their built-in cheer. Because the value of diamonds are invented, their value as a commodity acts as a double edged sword non that to the people that mine them but also to the companies that market and get across them. To understand the predicament De Beers is in today we must setoff look at the ea rly history of the diamond industry. In 1866 an African farmers son found the first authenticated diamond near Orange River, southwestward Africa. Three years by and by when an 83.5 carat diamond called The Star of South Africa was detect in close proximity to the same location, a diamond haste was triggered. Up until this point most diamonds came from Brazil or India and were passing rare.

Only the richest of the rich were actually able to sacrifice diamonds. The diamond rush in South Africa would soon shift this. In 1870 Cecil Rhodes, then unsloped 18 years experient came to South Africa and began buying up diamond mines. Barney Barnato, also just a young man, came to South Afric a to make a make up for himself and investe! d his property in the diamond industry. To compete with each another(prenominal) Rhodes and Barnato deluge the market with diamonds to try and oust the other. As any erect businessman will tell you, when supply goes up, crave goes down. Diamond prices were falling so sharply that the only style the both could stay in business was to combine ventures. and then was the beginning...If you fatality to get a full essay, order it on our website: OrderEssay.net

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