Disintermediation and Reintermediation - Assignment Example

Disintermediation and re-intermediation Simultaneous occurrence of disintermediation and re-intermediation in a given market Disintermediation and reintermediation can occur simultaneously within a given market. 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. Disintermediation defines the elimination of intermediaries and is associated with such benefits as closer ties between businesses and their customers while it may eliminate specialized expertise for developing the relationship between businesses and their clients and for optimizing derivable utility from the relationship.

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 application of travel agent and effects of online agencies in industriesLast 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).Benefits of disintermediation for my new businessA 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).Functionality of eBay as an intermediary and its relation to disintermediationA business like eBay still functions like an intermediary. Business scopes of such a business retain the intermediary role between buyers and sellers despite aided information in the internet.

Even established organizations with their websites still use the online business sites because of the pooled market that offers better opportunities for buyers and sellers. This, therefore, does not define true disintermediation because of the intermediary role that the businesses like eBay retain. Self-reliance among business entities and individual consumers would define true disintermediation (Oliver, Livermore and Sudweeks 100). Effects of E-commerce on how businesses do their marketingOne of the effects of e-commerce on marketing is a developed level of convenience in which a single channel can reach the global market.

This is because of the universal accessibility of the online avenues, contrary to traditional advertisement avenues such as newspapers and television that suffered from geographical barriers. E-commerce has therefore, with this respect also transformed marketing channels that businesses use. Another effect of e-commerce on how businesses do their marketing is enhanced affordability of marketing because the internet application is cheap and allows small-scale organizations, which previously lacked resources for marketing initiatives in the traditional media channels, to reach their target audience for marketing (Reynolds and Lancaste 395, 396).

Works citedCruz-Cunha, Maria and Varajao, Joao. Innovations in SMEs and conducting E-business: Technologies, trends, and solutions. Hershey, PA: Idea Group Inc (IGI), 2011. Print. Oliver, David, Livermore, Celia and Sudweeks, Fay. Self-service in the internet age: Expectations and experiences. New York, NY: Springer, 2009. Print. Reynolds, Paul and Lancaste, Geoff. Marketing. Woburn, MA: Routledge, 2013. Print.