Q. What should Debeers do to increase or stablize its share !
It should have a direct contact with the diomand mining firms,
colabrate with them by providing them with the funds. Understand the political matters of that country and try to colabrate with the mining firms. Open their own franchises of diomand finish gating in the country where diomand mining are done. Try to give them a offer such as for eg. Debeers company provide you the 70% of total cost of mining, on allow the to contribute just 30% of the cost and give them offer that the income generated from mining its 30% will be provide to them. To take the Govt. relief them give 5% of mining income to the government. Thruogh these ways debeers with the cost cutting can generate its large no. of share in the mining fields and he can purchase its own only. Then they can sale it at their price.
Q.2 How do you manage market share in such high
competition market. By making changes in the policy of buying & selling of Diomands allowing(producer) the mining company to participate with debeers in the market by giving them shares. By opening large no. of thir branches in the different part or by providing franchises to the different part of the country. In its shape or in its franchises shop selling diomand at the low price of its cartel agreement, This should be important by making others also to sell at the same price debeers sells. Heavy advertising for making people aware that the your own debeers have came up with own shops so have your quality diomand from your own safe place.
Q. 3 How does debeers can form the cartel / Should keep or
Leave cartel ! Debeers should keep the cartel through these method they can regain their market again. By making the Govt. of mining company in its favour by providing them funds for the development of country. Debeers should come up with the new agreement of cartel such as
Doing Joint Venture with the mining
company
100% mining dEBEERS Local Miners 80% 20% Profit Sharing 80% 20% Routan mins 10
Through this process total generate diomands 70% going to be
with the debeers, by giving a some good amount they can have the further more diomand of the local miner through the clause of cartel.