Download Disintermediation

Post on 02-Jan-2016




0 download

Embed Size (px)


PowerPoint Presentation

Disintermediationhttps://store.theartofservice.com/the-disintermediation-toolkit.htmlDistribution (business) - Channel mixIn practice, many organizations use a mix of different channels; in particular, they may complement a direct sales-force, calling on the larger accounts, with agents, covering the smaller customers and prospects. In addition, online retailing or e-commerce is leading to disintermediation. Retailing via smartphone or m-commerce is also a growing area.https://store.theartofservice.com/the-disintermediation-toolkit.htmlBricks and clicksThe success of the model in many sectors has lessened the credibility of some analysts who argued that the Internet would render traditional retailers obsolete through disintermediation.https://store.theartofservice.com/the-disintermediation-toolkit.htmlDisintermediationIn economics, disintermediation is the removal of intermediaries in a supply chain, or "cutting out the middleman". Instead of going through traditional distribution channels, which had some type of intermediate (such as a distributor, wholesaler, broker, or agent), companies may now deal with every customer directly, for example via the Internet. One important factor is a drop in the cost of servicing customers directly.https://store.theartofservice.com/the-disintermediation-toolkit.htmlDisintermediationDisintermediation initiated by consumers is often the result of high market transparency, in that buyers are aware of supply prices direct from the manufacturer. Buyers bypass the middlemen (wholesalers and retailers) to buy directly from the manufacturer, and pay less. Buyers can alternatively elect to purchase from wholesalers. Often, a business-to-consumer electronic commerce (B2C) company functions as the bridge between buyer and manufacturer.https://store.theartofservice.com/the-disintermediation-toolkit.htmlDisintermediation - HistoryThe term was originally applied to the banking industry in 1967; disintermediation referred to consumers investing directly in securities (government and private bonds, and stocks) rather than leaving their money in savings accounts, then later to borrowers going to the capital markets rather than to bankshttps://store.theartofservice.com/the-disintermediation-toolkit.htmlDisintermediation - DiscussionIn the non-Internet world, disintermediation has been an important strategy for many big box retailers like Walmart, which attempt to reduce prices by reducing the number of intermediaries between the supplier and the buyer. Disintermediation is also closely associated with the idea of just in time manufacturing, as the removal of the need for inventory removes one function of an intermediary.https://store.theartofservice.com/the-disintermediation-toolkit.htmlDisintermediation - DiscussionThe existence of laws which discourage disintermediation has been cited as a reason for the poor economic performance of Japan and Germany in the 1990s.https://store.theartofservice.com/the-disintermediation-toolkit.htmlDisintermediation - DiscussionIn response to the threat of disintermediation, some retailers have attempted to integrate a virtual presence and a physical presence in a strategy known as bricks and clicks.https://store.theartofservice.com/the-disintermediation-toolkit.htmlDisintermediation - ReintermediationReintermediation can be defined as the reintroduction of an intermediary between end users (consumers) and a producer. This term applies especially to instances in which disintermediation has occurred first.https://store.theartofservice.com/the-disintermediation-toolkit.htmlDisintermediation - ReintermediationAt the start of the Internet revolution, electronic commerce was seen as a tool of disintermediation for cutting operating costs. The concept was that by allowing consumers to purchase products directly from producers via the Internet, the product delivery chain would be drastically shortened, thereby "disintermediating" the standard supply model middlemen. However, what largely happened was that new intermediaries appeared in the digital landscape (e.g., Amazon.com and eBay).https://store.theartofservice.com/the-disintermediation-toolkit.htmlDisintermediation - ReintermediationBefore disintermediation, supply chain middlemen acted as salespeople for the producershttps://store.theartofservice.com/the-disintermediation-toolkit.htmlDisintermediation - Examples of companiesNotable examples of disintermediation include Dell and Apple, which sell many of their systems direct to the consumerthus bypassing traditional retail chains, having succeeded in creating brands well recognized by customers, profitable and with continuous growth.https://store.theartofservice.com/the-disintermediation-toolkit.htmlTechnological evolution - Theoretical implicationsWith growing disintermediation in said markets and growing concerns over the protection of intellectual property rights it is not clear what form markets for information will take with the evolution of the information age.https://store.theartofservice.com/the-disintermediation-toolkit.htmlPeer-to-peer lending - CharacteristicsEarly peer-to-peer lending was also characterized by disintermediation and reliance on social networks but these features have started to disappearhttps://store.theartofservice.com/the-disintermediation-toolkit.htmlAmerican English - 19th century onwardsFrom the world of business and finance came breakeven, merger, Wikt:delisting|delisting, downsize, disintermediation, Net income|bottom line; from sports terminology came, jargon aside, Monday-morning quarterback, cheap shot, game plan (American football|football); in the ballpark, out of left field, off base, hit and run, and English language idioms derived from baseball|many other idioms from baseball; gamblers coined bluff (poker)|bluff, Wikt:blue chip|blue chip, Betting (poker)#Ante|ante, bottom dollar, raw deal, pass the buck, ace in the hole, freeze-out, showdown; miners coined bedrock, bonanza, peter out, pan out and the verb prospect from the noun; and railroadmen are to be credited with make the grade (slope)|grade, sidetrack, head-on, and the verb railroadhttps://store.theartofservice.com/the-disintermediation-toolkit.htmlEcommerce in India - Market size and growth * Lower prices compared to Brick and Mortar retail driven by disintermediation and reduced inventory and real estate costshttps://store.theartofservice.com/the-disintermediation-toolkit.htmlVirtual community - Advantages of Internet communitiesDisintermediation eliminates pricey mark-ups and allows for a more direct line of contact between the consumer and the manufacturer.https://store.theartofservice.com/the-disintermediation-toolkit.htmlTravel agencies - Travel agencies in the 21st century Since 1997, travel agencies have gradually been disintermediation|disintermediated, by the reduction in costs caused by removing layers from the package holiday distribution networkhttps://store.theartofservice.com/the-disintermediation-toolkit.htmlBlog - Consumer-generated advertising in blogsBlogs have led to some disintermediation and a breakdown of the traditional advertising model where companies can skip over the advertising agencies (previously the only interface with the customer) and contact the customers directly themselves. On the other hand, new companies specialised in blog advertising have been established, to take advantage of this new development as well.https://store.theartofservice.com/the-disintermediation-toolkit.htmlProcuring (prostitution) - Internet effect The use of the Internet for prostitution as well as other changes in the sex industry have resulted in the disintermediation of prostitution, allowing prostitutes to deal with clients directly. This has rendered pimps largely superfluous, at least in the United States. In 2011, Wired (magazine)|Wired reported that of 11 pimps working out of New York's midtown Manhattan in 1999, all were out of work within four years.https://store.theartofservice.com/the-disintermediation-toolkit.htmlGovernment 2.0 - DisadvantagesThere are many considerations and potential implications of implementing and designing e-government, including disintermediation of the government and its citizens, impacts on economic, social, and political factors, vulnerability to cyber attacks, and disturbances to the status quo in these areas. See also Electronic leviathan.https://store.theartofservice.com/the-disintermediation-toolkit.htmlStock market - Relation of the stock market to the modern financial systemThe financial system in most western countries has undergone a remarkable transformation. One feature of this development is disintermediation. A portion of the funds involved in saving and financing, flows directly to the financial markets instead of being routed via the traditional bank lending and deposit operations. The general public interest in investing in the stock market, either directly or through mutual funds, has been an important component of this process.https://store.theartofservice.com/the-disintermediation-toolkit.htmlBank - Competition for loanable fundsThe phenomenon of disintermediation had to dollars moving from savings accounts and into direct market instruments such as United States Department of the Treasury|U.Shttps://store.theartofservice.com/the-disintermediation-toolkit.htmlDistributor (business) - Channel mixIn practice, many organizations use a mix of different channels; in particular, they may complement a direct sales-force who typically call on larger customers with agents who cover the smaller customers and prospects. In addition, online retailing or electronic commerce|e-commerce is leading to disintermediation. Retailing via smartphone or m-commerce is also a growing area.https://store.theartofservice.com/the-disintermediation-toolkit.htmlSavings and loan association - Further advantagesThe Depository Institutions Deregulation and Monetary Control Act (DIDMCA) of 198


View more >