Answer to Question #314841 in Management for fizzah

Question

Do you think De Beers still wields some bargaining power in the supply chain as a supplier of diamonds, seeing that its diamond market share has decreased steadily over the years? Motivate your answer. (20)

Answer 1

◦ Bargaining power- In negotiating, capacity of one party to dominate the other due to its influence, power, size, or status, or through a combination of different persuasion tactics

◦ Yes, I do believe that De Beers has wields bargaining power despite its diamond market shares decreasing as the company is such a renowned company that holds a high status in not only in history but in modern day times as well. De Beers' also has a far reach in terms of influence as the company has done business in various countries and and with several other reputable organisations and businesses.

◦ The name De Beers' still is powerful in the diamond industry, and it is also one of the founding-farthers of the diamond industry as a whole.

◦ De Beers' is also a company that has survived the test of time and is still successful, this another reason why they have bargaining power