SWOT Analysis of De Beers Group

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


Student Name: 
Student ID Number: 
Date: [Month, Day, Year)
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 synthetic gold, something that had not been done over the 130 years it has been in business. This product expansion is expected to increase the company's market share. 
Threats                The environment presents the following threats. New competition: DeBeers faces a lot of competition from new entities in the diamond jewelry industry (Oxford Analytica, 2018). Many people are investing in startups in the industry, which decreases DeBeers' market share. New ventures highly characterize the global market, and this is a major threat to DeBeers. Companies such as Zhongnan Diamond, SF-Diamond, and Sandvik Hyperion have focused on the manufacturing of synthetic diamond. Given that DeBeers is new in this market, it faces a lot of competition. The company is best kown for the manufacturing of natural diamond and therefore, a substantial number of people might not know whether it sells sythnetic diamond. Therefore, they wil buy from the new companies which are known to seell synthetic diamond.Environmental concerns: the mining process raises environmental concerns of pollution and landslides. The machines used in the mining process uses fuels that cause air pollution. This raises questions regarding the company's consideration of ecofriendly mining processes. The mines can also be a major cause of landslides that result in the miners' death or injury. This affects both the miners and locals whose land continues to get destroyed. 
SWOT Matrix Strengths WeaknessesOpportunities • DeBeers has the marketing strength that will enable it to take advantage of expanding in the global market.• The financial strength will enable the company to take advantage of the high demand in the global market. In turn, it will expand its market share. • The high cost of mining, processing, and shipping the diamonds makes it challenging for the company to meet the global demand.• The marketing weakness reduces DeBeers' ability to expand its market share because a substantial number of people prefer to buy other types of jewelry. Threats • The effective management team can develop strategies that will enable the company to overcome the threat of new markets. • The financial strength will also enable DeBeers to take care of the environmental threats facing it. • The high cost of production will continue to make it challenging for the company to solve environmental concerns.• Some consumers do not prefer to buy diamond jewelry will continue making it challenging for the company to beat the market competition.
SWOT fit with Strategy                      The company's strategy is to become the largest brand in the market, and the SWOT fits with this strategy. DeBeers' strengths and opportunities focus on a reliable management team and a chance to increase market share in the global market. Suppose the management team develops a strategy for the company to become the best diamond seller in the market. In that case, it will be easy for it to take advantage of the international market. This will be achieved by expanding the product line. DeBeers has already launched a new product, synthetic diamond jewelry. Such is an indication of how the company's SWOT fits with its strategy. As the company expands to various global markets, it will be on its way to becoming the largest brand in the industry.  ANALYSIS OF ALTERNATIVESCriteria for Selection of a RecommendationThe recommendation is for DeBeers to focus on expanding its product line and building new stores...