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Distribution (business) - Channel mix
1 In 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.html
Bricks and clicks
1 The 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.html
Disintermediation
1 In 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.html
Disintermediation
1 Disintermediation 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.html
Disintermediation - History
1 The 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.html
Disintermediation - Discussion
1 In 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.html
Disintermediation - Discussion
1 The 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.html
Disintermediation - Discussion
1 In 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.html
Disintermediation - Reintermediation
1 Reintermediation 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.html
Disintermediation - Reintermediation
1 At 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.html
Disintermediation - Reintermediation
1 Before disintermediation, supply chain middlemen acted as salespeople for the
producers
https://store.theartofservice.com/the-disintermediation-toolkit.html
Disintermediation - Examples of companies
1 Notable examples of disintermediation include Dell and
Apple, which sell many of their systems direct to the consumer—thus 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.html
Technological evolution - Theoretical implications
1 With 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.html
Peer-to-peer lending - Characteristics
1 Early peer-to-peer lending was also characterized by disintermediation and reliance on social networks but
these features have started to disappear
https://store.theartofservice.com/the-disintermediation-toolkit.html
American English - 19th century onwards
1 From 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 railroad
https://store.theartofservice.com/the-disintermediation-toolkit.html
Ecommerce in India - Market size and growth
1 * Lower prices compared to Brick and Mortar retail driven by
disintermediation and reduced inventory and real estate costs
https://store.theartofservice.com/the-disintermediation-toolkit.html
Virtual community - Advantages of Internet communities
1 Disintermediation 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.html
Travel agencies - Travel agencies in the 21st century
1 Since 1997, travel agencies have gradually been disintermediation|
disintermediated, by the reduction in costs caused by removing layers
from the package holiday distribution network
https://store.theartofservice.com/the-disintermediation-toolkit.html
Blog - Consumer-generated advertising in blogs
1 Blogs 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.html
Procuring (prostitution) - Internet effect
1 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.html
Government 2.0 - Disadvantages
1 There 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.html
Stock market - Relation of the stock market to the modern financial system
1 The 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.html
Bank - Competition for loanable funds
1 The phenomenon of disintermediation had to dollars
moving from savings accounts and into direct market instruments such as United States Department of the
Treasury|U.S
https://store.theartofservice.com/the-disintermediation-toolkit.html
Distributor (business) - Channel mix
1 In 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.html
Savings and loan association - Further advantages
1 The Depository Institutions Deregulation and Monetary Control Act (DIDMCA) of 1980 was designed
to help the banking industry to combat disintermediation of funds to higher-yielding non-deposit products such as money market mutual funds
https://store.theartofservice.com/the-disintermediation-toolkit.html
Agency Theory - Contract design
1 This can be thought of as a kind of disintermediation—targeting certain
measurable variables may cause others to suffer
https://store.theartofservice.com/the-disintermediation-toolkit.html
Savings and loan crisis - Background
1 Because regulators controlled the rates thrifts could pay on savings,
when interest rates rose depositors often withdrew their funds and
placed them in accounts that earned market rates, a process known as
disintermediation
https://store.theartofservice.com/the-disintermediation-toolkit.html
Capital market - Difference between regular bank lending and capital markets
1 But since about 1980 there has been an ongoing trend for
disintermediation, where large and credit worthy companies have found they effectively have to pay out less in interest if they borrow direct from capital markets rather than banks
https://store.theartofservice.com/the-disintermediation-toolkit.html
Financial intermediary
1 Money and Banking: Chapter 2 Section 5: Financial Intermediaries.
[http://www.saylor.org/site/wp-content/uploads/2012/06/ECON302-1.2-1st.pdf] Accessed June 28, 2012
Alternatively, they may lend the money directly via the financial
markets, which is known as financial disintermediation.
https://store.theartofservice.com/the-disintermediation-toolkit.html
Classless society - Marxist definition
1 with disintermediation|no intermediary between themselves and the society that
consumes their labor
https://store.theartofservice.com/the-disintermediation-toolkit.html
Business models - Examples of business models
1 * Disintermediation|Cutting out the
middleman model
https://store.theartofservice.com/the-disintermediation-toolkit.html
Unlimited company
1 * developing more advantageous company and business capital
strategies in an ever increasing irreversible trend of bank
disintermediation by companies and their management.
https://store.theartofservice.com/the-disintermediation-toolkit.html
Grey literature - Towards a new definition
1 *The tendency of disintermediation in the traditional value chain of Scientific information|scientific and technical
information. The “risk” of grey literature is not web-based technology but the
somehow fading role of libraries and information professionals as intermediaries
between authors, publishing bodies, and the end user. And tell the reader why this is
important other than job preservation.
https://store.theartofservice.com/the-disintermediation-toolkit.html
Print on demand - Self-publishing authors
1 Other services may also be available, including formatting, proofreading, and editing, but such companies typically do not spend money on
marketing, unlike the conventional publishers they Disintermediation|
disintermediate
https://store.theartofservice.com/the-disintermediation-toolkit.html
Search cost
1 The Internet was expected to eliminate search costs . For example, electronic commerce was predicted to cause disintermediation as search costs become low enough for end-consumers to incur them directly instead of employing Retailing|
retailers to do this for them. This would in turn lead to lower prices and less variation between prices quoted
by different sellers.https://store.theartofservice.com/the-disintermediation-toolkit.html
Trader Joe's - Products
1 By selling almost all of its products under its own label, Trader Joe's
disintermediation|skips the middle man and buys directly from both local and international small-time
vendors.
https://store.theartofservice.com/the-disintermediation-toolkit.html
Direct imports - Disintermediation by Technology
1 This is a significant example of how Internet technology is a powerful
force for disintermediation in commerce. To illustrate, a typical
B2C supply chain involving imports is composed of five entities (in order):
https://store.theartofservice.com/the-disintermediation-toolkit.html
James Cash, Jr.
1 At the interorganizational and industry levels, perhaps the most prominent effect of
information technology is the blurring of traditional company and industry boundaries, which is facilitating disintermediation and new forms of market access, as illustrated by the growing use of the Internet for business-to-
consumer, business-to-business, and intrabusiness communication. What does the
shift from face-to-face to screen-to-face delivery of information-based services mean for the
average person?
https://store.theartofservice.com/the-disintermediation-toolkit.html
Transparency (market)
1 A high degree of 'market transparency' can result in
disintermediation due to the buyer's increased knowledge of supply
pricing.
https://store.theartofservice.com/the-disintermediation-toolkit.html
Online media cooperative
1 The disintermediation that the Internet brought about has benefitted consumers and
businesses typically at the expense of small local businesses
https://store.theartofservice.com/the-disintermediation-toolkit.html
Laiki agora - History
1 People's markets were founded by Greek political leader Eleutherios Venizelos. Part of the motivation was to help local agricultural
producers sell their fresh produce to the local population in nearby towns without the need
of Wholesaler|middlepersons, thus cutting down prices, and from this perspective the introduction of people's markets in Greece can be considered as an application of the
commercial practice of disintermediation (or cutting out the middleperson).
https://store.theartofservice.com/the-disintermediation-toolkit.html
1933 Banking Act - Fate of 1933 Banking Act as “traditional bank regulation”
1 Instead of financial stability inducing deregulation and financial instability after 1980, as later suggested by David Moss and Elizabeth
Warren, Thomas Huertas and other critics of traditional bank regulation argued Regulation Q limits on interest rates (mandated by the 1933 Banking Act) created the “disintermediation”
that began in the 1960s, led to the phase-out of Regulation Q through the Depository Institutions Deregulation and Monetary Control Act of 1980,
and opened banking to greater competition.Huertas 1983, pp
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Frank Lucas (drug dealer)
1 He was particularly known for disintermediation|cutting out
middlemen in the drug trade and buying heroin directly from his
source in Golden Triangle (Southeast Asia)|the Golden Triangle
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3D printer - Social change
1 This process of labor substitution and disintermediation has been
underway for some time in service sectors – think of ATMs, online banking, enterprise resource
planning, customer relationship management, mobile payment
systems, and much more
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