The History and Present of the DeBeers Diamond Cartel
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The paper provides some history of the DeBeers Group and shows how this cartel has remained in control of the majority of the world's diamond supplies and also controls the majority of diamond retailers. The paper discusses how this enables it to control the price of diamonds and explains that it is able to make people think that diamonds are rare, that they have been eternal symbols of love that should be kept for an eternity, and that each one is entirely unique and thus valuable. The paper points out that with no real competitor in the industry, DeBeers can make people think what it wants them to.
History of DeBeers
History of DeBeers
From the Paper:"Businesses can be organized in a number of different ways, not simply in the ways that they structure internal communications and the control of their daily expenses and larger financial plan, but also in the way that their overall operations fit in with competitors and their industry of operation as a whole. A capitalist system that depends on free markets only truly functions when markets are free--when there are multiple business in competition with each other for consumers in a given industry, so that prices find the levels consumers actually are willing to pay for items while still keeping business profitable. Some businesses fail due to competition, but usually another takes its place, and with no business really winning the market remains competitive. At times, however, certain businesses have been able to become monopolies by actually beating all of their competitors in a given industry, forming what is known as a monopoly--and more specifically, a horizontal monopoly. This is a commonly known business arrangement, and most people have some awareness of the fact that monopolies stifle competition with results such as higher prices, poorer quality, and other ill effects for consumers."
Sample of Sources Used:
- Aurora. (2010). "The history behind the DeBeers diamond cartel." Accessed 12 November 2010. http://www.associatedcontent.com/article/15362/the_history_behind_the_debeers_diamond.html?cat=46
- DeBeers. (2010). The DeBeers Group. Accessed 12 November http://www.debeersgroup.com/Sustainability/Ethics/Conflict-diamonds/
- Epstein, E. (1982). "Have you ever tried to sell a diamond?" Atlantic Monthly (February). Accessed 12 November 2010. http://www.theatlantic.com/magazine/archive/1982/02/have-you-ever-tried-to-sell-a-diamond/4575/2/
- IA. (2010). "Cartel." Investing Answers. Accessed 12 November 2010. http://www.investinganswers.com/term/cartel-1030
- Stern. (2010). "DeBeers and Beyond." NYU School of Business. Accessed 12 November 2010. http://pages.stern.nyu.edu/~lcabral/teaching/debeers3.pdf
Cite this Persuasive Essay:
The History and Present of the DeBeers Diamond Cartel (2013, May 01) Retrieved July 07, 2020, from https://www.academon.com/persuasive-essay/the-history-and-present-of-the-debeers-diamond-cartel-152990/
"The History and Present of the DeBeers Diamond Cartel" 01 May 2013. Web. 07 July. 2020. <https://www.academon.com/persuasive-essay/the-history-and-present-of-the-debeers-diamond-cartel-152990/>