DeBeers's Diamond Dilemma

Abstract

This MIT Sloan Management case study highlights strategic challenges for the DeBeer's diamond company. The synthetic diamond industry has come on the radar of diamond giant DeBeers as a potential disruptive technology. The question facing the firm is how it should respond to the threat. Learning Objective: To explore issues of strategy that arise in markets for status goods and appreciate how a major player’s strategic moves can transform a market. Students will discuss the source of diamonds’ value to consumers, and how that value can be shaped through DeBeers’ strategic choices. This case study is part of the MIT management studies "Industry evolution" stream. Industry evolution is the study of how industries begin, grow, mature and adapt to changing business environments.