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l Mini case
The global diamond market
Diamond mining and distrlbrrtion ae big business. Among the world's biggest produc-
ers are Russia, Botswana, and Australia, each of which produces over 20 billion carats
(a carat is a weight of 0.2 grammes) a year. It takes considerable investment: tn"li*"
taken between discovering a diamond deposit and opening a mine is typicary eight yean.
Mining is just the start, however. Before they can be sold to a distributor or dealer,
diamonds have to be cleaned and sorted: only about 20% actually go on to be
used in
jewellery manufacture, and thence down the marketing channel
to retailers and the end
consumer.
Organizational use takes up 80% of diamond production. The main industrial uses of
diamonds include cuttinglools, abrasives, and powder for grinding and polishing. Even
though diamonds are expensive, the material is so long-lasting thit it is
-ottrr tie cosi
to the buying firm. lndustrial diamonds are sold to companies working i" til;;;;:
ceramic, metal, and conffete industries. Diamonds are also used by manufacturers of
pistonsforalrrminium.alloycarengines,computerchips,andsurgicalblades,
Thus, although marketing (via retailers) to consrrmers can be Jn important pan of a
diamond disnib.utgT:s role,(e.g. the famous 'a diamond is forevCr, advertising slogan,
used by De Beers), knowing how to purchase and then resell the right sorts of diamonds
from mining producers to,satisfy the needs of a huge variery of organizational customersl
is actually a r-rudt more important set of activities for fiost dtsuibuton ,fheir:busjiiresg
customers ar far less,likely persuad"o,tv slylish pmmotionat messee than ise,
!o be
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