After having a monopoly in the diamond market for many years, by 2000, De Beers faced competition from other companies.To maintain its market share, De Beers
A)began buying so-called "blood diamonds" in order to keep these diamonds out of the control of other diamond companies.
B)adopted a strategy of differentiating its diamonds. Each of its diamonds is now marked with a microscopic brand.
C)bought diamond mines in Canada and Russia that had been its competitors.
D)lowered the prices of its diamonds to make the market appear less profitable to potential competitors.

Question

Quizplus · Accepted Answer

By adopting a strategy of differentiating its diamonds, De Beers is able to maintain its market share by ensuring that its diamonds stand out from those produced by its competitors. Each of its diamonds is marked with a microscopic brand, which distinguishes them from other diamonds on the market. This helps to maintain De Beers' reputation as a producer of high-quality diamonds and makes it more difficult for its competitors to compete on equal footing.

After Having a Monopoly in the Diamond Market for Many