It is in both of their interests to regulate the supply o diamonds to the world, because if too many diamonds became available then the prices of diamonds would be severely reduced. But if both DeBeers and the Russian company

James Sandberg Busies – PJOS 01/05/2007

Busies – Unit 42 Case Study B2.

It is in both of their interests to regulate the supply o diamonds to the world, because if too many diamonds became available then the prices of diamonds would be severely reduced. But if both DeBeers and the Russian company have equal rights on regulating the supply then the prices would stay at where THEY wanted the diamonds to stay. This would mean that they would not be loosing profit. Also it would mean that DeBeers would not have to buy diamonds from less developed markets such as the ones on Tel Aviv, or other such places.

This Deal would mean that the buyers of diamonds would be buying high quality diamonds but at quite a high price. It would also mean that there would be a lot more Russian diamonds on the market as opposed to when moist of the Russians diamonds got leaked to the black market where they could be sold at a much lower price than they should have been. This will mean that the world supply of legal diamonds will become much higher, and because there will not be so much being leaked to the black market that will mean that diamond companies will be able to raise their prices and people will still pay for them, because you would not be able to get them any cheaper any where else in the world. It also means that the consumer will probably be buying diamonds from the DeBeers company. This will raise their profit significantly.

By advertising in magazines worldwide it means that they can know how many people are actually willing to buy their diamonds (by seeing how many people subscribe to their magazine, or to the magazine that they have advertised in) and there for they can release as many diamonds as necessary. For example of hey found that the number of people in a certain country that are buying diamonds has gone down (because of a recession or something like that) then they would be bale to cut the supply of diamonds to that country and sell them somewhere else. ...

By advertising in magazines worldwide it means that they can know how many people are actually willing to buy their diamonds (by seeing how many people subscribe to their magazine, or to the magazine that they have advertised in) and there for they can release as many diamonds as necessary. For example of hey found that the number of people in a certain country that are buying diamonds has gone down (because of a recession or something like that) then they would be bale to cut the supply of diamonds to that country and sell them somewhere else. It also means that it doesn’t look like there are far to many diamonds, which would lower the value of them. So where they know that there is a demand for their product they will be able to supply them with the right amount of the product, and where there is less demand they can take some of the product away and invest it somewhere else.

I think that this sort of deal should be prevented, because DeBeers already has a monopoly over the market and with this deal it would gain an even bigger market share than it does already. It would be the equivalent of Microsoft buying apple Mac. or something like that. DeBeers would be able to dictate anything that it wanted and it would get it. If they were having a really, really good year then they could depress prices and put other diamond companies out of business and then they could raise them again the next year. Everyone already knows DeBeers as the leading Diamond company and this would just make sure that no one would be able to touch the, ever. I think that there should be an independent international commission that looks into things like this. There would be no governmental ties or anything like that, it would be a completely independent body of experts who know their stuff. So for every case there would different people in the commission but people who know that particular market. This would mean that there would be no unfair takeovers or merges that would make all the smaller companies go out of business, or anything like that. It would mean that the world markets would have to accept their decisions. This would make it a much fairer market and that the big old companies would not have such an unfair advantage.