Case Details: |
Price: |
| Case Code |
: |
ECOA125 |
For delivery in electronic format: Rs.
300; For delivery through courier (within India): Rs.
300 + Rs. 25 for Shipping & Handling Charges
Themes- |
| Case Length |
: |
13 Pages |
| Period |
: |
2004 |
| Organization |
: |
De beers, Lev
Leviev |
| Pub Date |
: |
2004 |
| Teaching Note |
: |
Not Available |
| Countries
|
: |
South Africa,
Global |
| Industry |
: |
Diamond |
Abstract:
|
South Africa-based De Beers has enjoyed an unchallenged monopoly in the global
diamonds business for close to 100 years. Until a few years ago, De Beers
determined who could buy uncut stones, in what quantities and quality. De Beers
also decided which cutting centres would be used.
But its share of the international rough-diamond market, 80% five years ago, has
now reduced to 45%. Meanwhile, Lev Leviev (Leviev), a former De Beers
sightholder (one of the few exclusive direct buyers of De Beers rough diamonds)
has emerged as the world's largest cutter and polisher of precious gems.
Frustrated by De Beers' high-handed treatment of buyers, Leviev has decided to
operate on his own.
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Leviev has begun dealing directly with diamond-producing governments, thus undermining De Beers' all-important relationship with sightholders. Leviev is the diamond industry's first dealer to operate across the value chain - from mining and cutting to polishing and retailing. The case discusses the circumstances leading to Lev Leviev's rise and the consequent decline in De Beers' monopolistic power. The case also explains how De Beers is repositioning itself to regain its lost glory.
Contents:
Keywords:
Lev Leviev, De Beers, Diamond industry, Sightholder, South
African company, Russia, Angola, Cecil Rhodes, Branding diamonds, Forevermark,
Tashkent, Namibia, Vivid Collection, South African mining giant, LVMH (Moet
Hennessy-Louis Vuitton)
Lev Leviev vs De Beers
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