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Disintermediation and Reintermediation - Assignment Example

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This is because despite the alternating scopes of the two elements, a market is a diversified set up in which competitors implement their diversified approaches for competitive advantage…
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Disintermediation and Reintermediation
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Disintermediation and Reintermediation

Download file to see previous pages... Reintermediation however defines re-introduction of the intermediaries in the commercial cycle. A business that focuses on optimization and specialization and has resources for utilizing intermediaries may therefore apply reintermediation while a small-scale enterprise that lacks resources and requires closer touch with clients may apply disintermediation in the same market (Oliver, Livermore and Sudweeks 100-102).
Last week is the last time that one of us used a travel agent. Such applications are however common with most people preferring online agencies for inquiries, applications, business transactions. Online sites exist in different industries to mediate interactions among the industries’ stakeholders. Examples of the sights are Mmonster.com, Trulia.com, and LegalZoom.com and they offer cost efficiency and convenience to stakeholders. Trulia.com, for example, offer information on real estate, associated environments, and therefore saves real estate agents the cost and time that could be spent to move to different properties. Monster.com and LegalZoom.com also has the cost efficiency and time convenience effects (Cruz-Cunha and Varajao 138).
A better understanding of the business environment is one of the potential opportunities that disintermediation offer for my new business. Potential conflict of interest among agents explains this. In order to secure their agency, agents would offer limited and complicated information with the aim of promoting dependence on their services while elimination of such agency will allow for a direct link with consumers to offer unlimited information on the market environment. Profit maximization is another opportunity that disintermediation offers to the business because of limited administration costs. Intermediaries may also mislead a new business to create an entry barrier and disintermediation can manage this (Oliver, Livermore and Sudweeks 100).
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