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DeBeers/Diamonds vs. InBev/Beer vs. Steinway Business strategy DeBeers—differentiate diamonds InBev—lower cost Steinway—differentiation of quality and production (handcrafting) Corporate strategy DeBeers—growth through vertical integration—control industry InBev—growth through acquisition
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DeBeers/Diamonds vs. InBev/Beer vs. Steinway Business strategy DeBeers—differentiate diamonds InBev—lower cost Steinway—differentiation of quality and production (handcrafting) Corporate strategy DeBeers—growth through vertical integration—control industry InBev—growth through acquisition Steinway—company has been bought/sold several times—sometimes independent, sometimes a unit (CBS, Selmer). Within Steinway, no diversification but production is integrated—no outsourcing of components. Entry methods DeBeers—export, investment, joint venture, get mines into cartel InBev—foreign direct investment through acquisition. No start-ups. Steinway—exporting, foreign direct investment, licensing
DeBeers/Diamonds vs. InBev/Beer vs. Steinway Competitive environment DeBeers—maintain cartel in raw material production and in finished goods marketing. InBev—push marketing, globalize production for cost/market power, no raw materials production. Steinway—maintain differentiation, add lower cost brands to mix, deal with large competitors and pursue growth markets Future DeBeers—more competitors (mines, synthetics, other gems), more controversy InBev—more competitors, market saturation in traditional markets, find new ones. Similar to Anheuser-Busch’s situation—growth through acquisition takes you only so far in a mature industry. Steinway—large competitors moving upscale, need to maintain differentiation/image. What do you suggest?