Lev Leviev vs De Beers

Lev Leviev vs De Beers
Case Code: ECOA125
Case Length: 13 Pages
Period: 2004
Pub Date: 2004
Teaching Note: Not Available
Price: Rs.300
Organization : De beers, Lev Leviev
Industry : Diamond
Countries : South Africa, Global
Themes: -
Lev Leviev vs De Beers
Abstract Case Intro 1 Excerpts

Introduction

For about 100 years De Beers, the South African company had been the unchallenged monopoly in the diamonds business. Until a few years back, De Beers could determine who could buy uncut stones, in what quantities and quality and decide which cutting centers would be used. But its share of the rough-diamond market, 80% five years ago, had reduced to 45% by mid-20041. Meanwhile Lev Leviev (Leviev), a former De Beers sightholder (one of the few exclusive direct buyers of De Beers rough diamonds), had emerged as the world's largest cutter and polisher of precious gems.

Leviev also provided rough stones to other cutters, polishers and jewelry makers around the globe. Leviev was the diamond industry's first dealer to operate across the value chain from mining and cutting to polishing and retailing. Frustrated by De Beers' high-handed treatment of buyers, who were offered rough diamonds at take-it-or-leave-it prices and risked being permanently cut off if they resisted, Leviev had decided to operate on his own. Leviev had begun dealing directly with diamond-producing governments. This undermined De Beers' all-important relationship with sight holders...

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