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E-Businesses and Intermediaries

By redesigning relationships with business partners, e-business allows for direct customer relationships thus empowering "disintermediation." What types of new intermediaries might emerge in lieu of the classical middlemen of the past?

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By redesigning relationships with business partners, e-business allows for direct customer relationships thus empowering "disintermediation." What types of new intermediaries might emerge in lieu of the classical middlemen of the past?

Disintegration means getting rid of third parties in the supply chain. This means the role of the middlemen becomes unnecessary because producers can directly communicate through the power of the internet in the e-business industry. This discussion will show that disintermediation in e-business is a controversial issue because there are industries who ventured into e-businesses feel that intermediation need not be eradicated just because the internet will do the job. This was the opinion of the health care industry.

Peter J. Plantes, M.D., explained: "While disintermediation has fueled the growth of e-commerce in many industries, it can have negative consequences for health systems. Removing the local healthcare organization and their physicians from the healthcare equation decreases patients' identification, reliance and access to local resources and healthcare options that can best meet their needs. For healthcare organizations and their physicians, disintermediation erodes the local patient base and creates roadblocks to reaching physicians, and can be in ...

Solution Summary

The solution shows how e-business will change in this technologically efficient society. Based on facts, the discussion showed that the role of the intermediaries or middlemen has not disappeared with the advent of e-business. Rather, their roles have expanded.

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