Microeconomics Case Study

De Beers vs Lev Leviev: The ‘Decartelisation’ of the Diamond Industry?

OR

Abstract:
De Beers held monopoly power in the international diamond market, for more than a century, by controlling supply, managing demand, and maintaining the prices of diamonds. The 1990s, however, witnessed certain changes in the industry, along with the geopolitical changes, which endangered De Beers' dominance in the market. Notably, the competition from new entrants such as the Lev Leviev Group raised doubts if the cartel could last.

Pedagogical Objectives:

• To discuss the challenges faced by De Beers
• To discuss vertical integration, entry barriers, and make a political, economic, social, and technological (PEST) factors-analysis of the diamond induustry
• To discuss how De Beers planned to sustain its dominant position in the diamond industry in the early 21st century.

Keywords : De Beers vs Lev Leviev, Decartelisation of diamond industry, The diamond syndicate, cartel, International Trade & World Economy Case Study, The Kimberley process, Forevermark, The Diamond Trading Company (DTC), Supplier of choice, Monopoly, Conflict diamonds, The Anglo-American Corporation, Ascorp, Alrosa, Namco, Debswana, Namdeb