What is Disintermediation? Meaning.
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 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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