Disintermediation

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Description of Disintermediation. Explanation.

Definition Disintermediation. Description.

Disintermediation is the removal (or obsolescence) of an intermediary role in the value chain between manufactures and consumers. For example:

• The classic disintermediation of computer retailers and resellers by PC-manufacturer Dell through selling direct to end users via the Dell website.

• An airline selling tickets direct to the public over the internet, thus cutting out the travel agent in the selling process.

• Amazon.com for books and CDs.

Major advantages of disintermediation are lower cost for the end consumer, plus shopping-convenience for the consumer who does not want to leave home.

Typical intermediaries in the value chain include: distributors, wholesalers, brokers, agents, resellers and retailers.

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Compare with: Bricks and Clicks  |  Just-in-time  |  Virtual Business  |  TDC Matrix  |  4S Web Marketing Mix  |  Twelve Principles of the Network Economy  |  Disaggregation  |  E-Business  |  Industry Attractiveness

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