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 Mark Pruett
[email protected]
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
 Mark Pruett
[email protected]
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?