Recommendations of De Beers: Arent Diamonds Forever Case Help

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Recommendations of De Beers: Arent Diamonds Forever Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of various alternatives, the company is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in global markets without any reduction in its regional profits and any wear and tear of its market position. By thinking about Alternative 3, the business could preserve its shop experience and brand uniqueness. Nevertheless, it might also consider alternative 2 that could permit the business to access the marketplaces without any prospective investment. The company could pursue alternative 1 which would make it possible for the business to focus on possible international markets rather than the local markets but as the company is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the significant decline in company's revenue. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of De Beers: Arent Diamonds Forever Case Analysis Stores

International SegmentsThe business has a long term market position in United States which can not be generated quickly in the brand-new markets. The alternative would assist the company to expand in global markets along with the removal of problems raised in its regional markets related to its diversity.

Pros:

• Expedition of new global markets.
• Increase in profits from worldwide markets.
• Removal of issues related to diversity.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Differences in cultures might caused a failure of the brand name particularly in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of De Beers: Arent Diamonds Forever Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position a severe danger to the market share of business. In this situation the company might consider introducing Click and Recommendations of De Beers: Arent Diamonds Forever Case Analysis stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand Uniqueness
• Removal of the great store experience.
• Danger of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another alternative that the company could think about, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of earnings of the company. The pros and cons connected to Alternative 3 are provided listed below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Expanding consumer base
• Big Profits
• Expedition of brand-new international markets.
• Boost in revenue from international markets.
• Income diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of issues associated with variety.
• Differences in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to get market share.



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