DeBeers Case Study Answers

Case Requirements
I. Introduction: Provide an overview of your analysis. (5 points)
II. Discuss DeBeer’s Strategy Diamond. (20 points)
a. Identify and discuss each area of the Strategy Diamond that appears in the case? When doing so,
• Assess whether each area of the Strategy Diamond is a strength or a weakness (as it appears in the case).
• Discuss how the introduction of synthetic diamonds might impact each area of DeBeer’s Strategy Diamond.
III. Situation: In this section your analysis should include, but not be limited to (30 points):
A. Competitive advantage (10 points)
i. What is the DeBeer’s competitive advantage?
ii. How has DeBeer’s maintain its advantage over the years?
B. VRINE model (20 points)
i. Using the VRINE model, examine how these factors contributed to DeBeers’ competitive advantage.
IV. Problem (30 points)
A. What is the major problem confronting DeBeers?
a. Conduct a PESTEL analysis and identify three problems confronting DeBeers
IV. Complications (50 points)
A. Five Forces Analysis
a) Conduct a Five Forces Analysis: Describe each force in detail and then rate it using the following scale: 5 (very high threat), 4 (high threat), 3 (medium threat), 2 (low threat), 1 (no threat). When conducting the analysis, answer the following
Strategic Management
Project A
4
questions in detail. See Appendix for chart.
1. How intense was the competition?
2. How substantial were the barriers to entry?
3. What was the likelihood of substitutes being developed?
4. What was the bargaining power of the suppliers?
5. What was the bargaining power of the buyers?
b) Compute the total score and take the average to ascertain the level of threat that these forces posed to DeBeers. Your average score should range from 1–5.
o Based on the average score, describe the attractiveness of the industry.
V. Consequence (25 points)
a) What are the competitive consequences associated with this problem?
o List two or three possible strategic or competitive consequences that might arise given the problems that were identified in Section III.
VI. Solution: How should DeBeers address the synthetic diamonds threat? (50 points)
a) Develop a solution, not mentioned in the case, which provides DeBeers’ with a new strategic plan. See Appendix for framework
o Describe what areas of the strategy would change if DeBeers implemented your strategy.
o Describe how your strategy would enable DeBeers to capitalize on their strategic position or generic strategy.
b) Conclusion – Wrap up your analysis. (10 points)