De Beers, a south African group is a classic case of

monopoly in diamond extraction.

De Beers has established central selling organization
which controls more than 80% of the diamond business of
the world.
Basically the monthly pricing strategy of De Beers implies
continuous rise in the value of diamonds with its
management of control over the market supply.
In the diamond market the new millennium is facing
some serious problems.
The main problems pertain to the oversupply of diamond
,falling prices and reduced profitability.





Basically De Beers is facing some serious problems
like the over supply of diamonds, falling prices and
reduced profitability.
De Beers Is one of the largest Selling organization
of diamond.
The countries like America and Russia dumped
Their stocks in The world diamond market that has
caused reduced prices and lower profits to the
diamond..
In that case there are some strategy to deal with
some serious problems
Purchase of surplus gems to hoard them.
Control over its mine operations and output.
Negotiation with Russia.
Monopoly in diamond extraction.
Its expansion plan.
Problems of oversupply of diamonds.
Point of saturity.