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    Define disintermediation

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    Define disintermediation. Discuss the opportunities and threats presented by disintermediaries to other channel members.

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    Disintermediation is the removal of intermediaries in a supply chain: "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 of the classic examples of disintermediation is Dell Inc., which sells its products directly to its customers via internet.

    Opportunities: One of the major advantages of disintermediation is the cost savings, which arises from selling and servicing customers directly. These cost ...

    Solution Summary

    The expert defines disintermediation. The opportunities and threats presented by disintermediaries to other channels members are examined.