Introduction
The diamond market is a relatively difficult field to operate in, which means that gaining a competitive advantage is challenging. Thus, it is certain that a corporation’s success in this domain is economically proficient in both micro and macroenvironment. De Beers is, indeed, the world’s largest diamond company specializing in mining and marketing precious stones to some of the most well-known jewelry design businesses. In this paper, the microeconomic success will be evaluated from the perspective of marketing, workforce, and shared value concepts. Moreover, the macroeconomics of the corporation will be illustrated as proficient use of resources to facilitate economic prosperity nationwide as well as maximize profit by selecting strong economies to operate in.
Microeconomy
A component of the microeconomy is the consideration of consumer rationality and labor needs. However, diamonds are niche products; hence, consumer rationality is mitigated through marketing, as the price is not the determining factor in this particular field. De Beers has famously established the slogan “A diamond is forever” (De Beers Group, 2022b). Thus, consumer rationality is facilitated through the marketing of products as ones that will serve a lifetime. Labor considerations have also led to microeconomic success. Researchers mention that the company is proficient in managing the talent pool (Mupepi, 2017). Identifying high-level specialists minimizes risks and maximizes economic success. This implies that costs are maximized through professionals who determine regions in which mining can be performed, process the raw material without damage, and sell them to buyers. Hence, the company does not experience losses correlating to an inefficient workforce. Last but not least, the corporation can implement a shared value policy. As a result, both competitiveness, economic, and social advances are being addressed through efficient practices and policies (Fraser, 2019). The aforementioned implications have assisted the company in achieving financial success through microeconomics.
Macroeconomics
The company economically benefits from its macroenvironment through practices that are intended to maximize profit. An example is the company’s aim toward solid markets in countries in which people have relatively high buying power. Thus, while De Beers cannot directly distribute diamonds in the US, the company does it through indirect means, especially in the current microenvironment. As the Russian Alrosa cannot supply most countries due to sanctions and companies dismissing the company for political reasons, De Beers is able to succeed by replacing the demand generated by the absence of the rival (Mining, 2022). It is especially crucial within the largest diamond market, the US. Thus, the company benefits from the microenvironment by having a resilient economic agenda. Moreover, the company benefits by operating in countries where the diamond industry is one of the primary fields. The corporation benefits from operating in countries such as Botswana and Namibia, as well as supports the regions through ethical and natural conservation aims (De Beers Group, 2022a). As a result, the company’s macroeconomics relates to its success.
Conclusion
Both micro and macroeconomic implications are designed to facilitate circumstances in which De Beers remains the largest diamond mining corporation globally. Efficient marketing, hiring techniques, and shared value policies create an internal environment in which the business achieves productivity by minimizing input and maximizing output. Furthermore, the macro environment is considered through effective market selection methods as well as operation regions in regard to mining processes. The consideration of both frameworks and resilience in regards to adaptation of the internal environment to the external one generates organizational success.
References
De Beers Group. (2022a). Leaving a positive legacy. Leaving a Positive Legacy – De Beers Group. Web.
De Beers Group. (2022b). Slogan that changed the world of diamonds. De Beers Group. Web.
Fraser, J. (2019). Creating shared value as a business strategy for mining to advance the United Nations Sustainable Development Goals. The Extractive Industries and Society, 6(3), 788–791.
Mining. (2022). Russia’s secret gem sales are dividing the diamond world. Mining. Web.
Mupepi, M. (2017). Diamonds are not for forever. Advances in Human Resources Management and Organizational Development, 134–159.