Debeers at the Millenium

De Beers should focus on a strategy that is demand-driven and brand-focused whereby profits would prove more important than market share. DeBeers should consider ending the practice of stockpiling its diamonds and should buy fewer stones at reasonable prices; profits matter more than market share. De Beers should emphasize differentiation rather than maximization of the share of distribution. The vertical integration of the industry is its long-term trend; it's absolutely the way to grow the business and build a brand. Retail clearly adds value. It should consider a joint venture with one of the luxury-brand retailers (preferably a luxury-watch retailer) and develop a marketing and retail strategy to position its diamonds as a branded luxury item. De Beers should differentiate the diamonds and maximize the value of the diamonds, in order to sell them at better prices. DeBeers' has been successful with advertising campaigns like 'Diamonds are Forever' and 'Three-Stone Jewelry'. It can leverage its brand by offering De Beers-branded jewelry directly to consumers and campaign with more innovative ideas.

Suspicions about diamonds' origins would have an impact on demand. It should stop buying diamonds on the open market to make sure its diamonds are "conflict-free" and should consider joint ventures with other mining companies. This way they will be able to ensure the origin of the diamond and be honest about the 'Certificate of Origin' it provides. De Beers should also step-forward to build healthy and friendly relations with its suppliers and sight-holders. Sight-holders should be offered the diamonds that they requested rather than a specific package of stones they were forced to take. This way, buyers can plan their sales ahead giving them a competitive advantage to differentiate.

Ultimately, De Beers should become a diamond vertical (operating from exploration, to mining, and to retail) and compete with a series of sight holders who may be as vertical or at least operate from cutting through retail.