De Beers Diamond Company

baseball diamonds are forever, or so we thought. What once was one of the roughly successful monopolies in the entire world controlling 90% of the worlds rough- rhombuss production and distribution, De Beers Diamond Company is now struggling to stag a profit (Bowers). How is it that a company can prove to such power so quickly without being stop? More importantly why is the same company who controlled 90% of diamond production and distribution a century agone now struggling to make ends meet? The answer lies in our history books. Globalization plays a key role in the production, distribution and marketing of diamonds needed to create their intrinsic cheer. Because the value of diamonds are invented, their value as a commodity acts as a double edged sword not that to the people that mine them but also to the companies that market and penetrate them.
To understand the predicament De Beers is in today we must get-go look at the early history of the diamond industry. In 1866 an African farmers son found the first authenticated diamond near Orange River, southwestward Africa. Three years by and by when an 83.5 carat diamond called The Star of South Africa was discovered in close proximity to the same location, a diamond haste was triggered. Up until this point most diamonds came from Brazil or India and were passing rare.



Only the richest of the rich were actually able to afford diamonds. The diamond rush in South Africa would soon change this. In 1870 Cecil Rhodes, then just 18 years old came to South Africa and began buying up diamond mines. Barney Barnato, also just a young man, came to South Africa to make a name for himself and invested his property in the diamond industry. To compete with each other Rhodes and Barnato deluge the market with diamonds to try and oust the other. As any erect businessman will tell you, when supply goes up, demand goes down. Diamond prices were falling so sharply that the only way the both could stay in business was to combine ventures. Thus was the beginning...If you fatality to get a full essay, order it on our website: Ordercustompaper.com



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