De Beers is currently being faced with some new challenges that are making it necessary for us to consider a change in the way we do business. With recent turmoil in Western Africa, where illicit diamonds are beginning to come from war torn villages, and other sources of diamonds being found in Russia and Australia, it is clear that we need to begin to move into the U.S. market. However, legally, De Beers is in violation of the U.S. antitrust laws and is therefore being prohibited from selling directly in the U.S. market. Throughout the following memo I will identify the problems we at De Beers are currently facing. I will then make a set of recommendations for action to help us move into the U.S. market by proposing a relaxation of U.S. antitrust laws with restrictions on illicit diamonds, and finally I will conclude with some implementation steps for the solutions that have been recommended.
A PEST analysis has been performed on the current situation facing De Beers. In the following section, I will focus on the most important problems identified in the PEST analysis for which we must find solutions and also on the most important positive forces that we must leverage to our advantage in order to maintain or gain market share. Please see Exhibit 1 for details on the PEST analysis and additional information on other issues we are facing and forces that might help or hinder our market share in the U.S.
The most important of the problems we are faced with are due to Political issues in the United States and elsewhere. Due to war in western Africa, diamonds are beginning to flow from the war torn fields of Sierra Leone and Angola, and in Russia, mines are being controlled locally as opposed...