Disintermediation and internet
distribution
Have you ever heard of the term
DISINTERMEDIATION?
This means to flatten an
organization – removing one or more links in the distribution chain. In recent
years, the internet has been a source of disintermediation as products
traditionally sold through physical retail outlets can now be distributed
directly from the manufacturer directly to the consumer – eliminating the
MIDDLE MAN. By eliminating the middle man the price of the product can be
reduced.
Please help identify a product now
offered directly over the internet that used to be available only through a
separate retailer. (Indicate the website where you found this product).
(Be careful with this question as
internet retailers – e.g., Amazon – and websites sponsored by traditional
retailers – e.g., macys.com – do not constitute disintermediation, but only
replace or complement traditional physical outlets.)
Explain the advantages and
disadvantages associated with internet distribution for this product.
ScholarMatic: Explanation & Answer
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