What was a key feature of De Beers' centralized approach in the late 19th and early 20th centuries?

• A. Decentralized markets with no coordination.
• B. Centralized marketing and supply management to maintain near-monopoly.
• C. Focus on synthetic diamonds rather than natural.
• D. Solely vertically integrated mine ownership without marketing.

Answer: (B)

Central control of how much product is produced and how it is sold is the key idea here. De Beers linked its mines, producers, and distributors into a single, centralized system that decided the volume of rough diamonds released to the market and who received them. By coordinating production quotas and distributing stones through a unified channel, they could prevent oversupply, smooth price fluctuations, and keep diamond prices high and relatively stable. This concentrated control — both over supply and the way the product was marketed and sold — fostered a near-monopoly by limiting competition and shaping demand across global markets. That is why centralized marketing and supply management to maintain near-monopoly best describes the notable approach in that era.