antidisintermediationIn commerce, antidisintermediation is a term used to describe thepreservation of intermediary positions. Today's consumer can accessgoods or information on the Internet that traditionally required theassistance of an intermediary such as a retailer, travel agent, orbanker. By cutting out the middleman ( disintermediation ),e-businesses are able to sell goods and services more quickly andefficiently, and for lower prices. Antidisintermediation measures are carried out through businessincentives (or disincentives) and legal actions to ensure thatintermediary positions are not eliminated. Since a good deal ofprofit is made by individuals or businesses serving as intermediariesbetween the primary source of a good or service and the consumer,intermediaries are using antidisintermediation measures tore-establish their niche in the changing economy. In one example of antidisintermediation (cited in "The death of "e"and the Birth of the Real New Economy: Business Models, Technologiesand Strategies for the 21st Century" by Peter Fingar and RonaldAronica), Home Depot sent a letter to 1,000 of its suppliers(including Black & Decker and General Electric, for example) warningthem that the company would be less likely to do business with thoseamong them who also marketed their goods online.
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| This word suggested by: Peter Fingar | | Last updated on:
Jan 31, 2006 |
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