03/01/2010

P1-What is ‘disintermediation’ and does it help producers? Explain how

Disintermediation is a popular buzzword used to describe businesses that are just online. It means taking out the middle man, online businesses don’t have to go through the process like store, they have a supplier who then sends it to their warehouse after that they get the products from the warehouse to the stores but online business cut that all out they have a supplier that takes the product to the warehouse and when people order a product online it goes from the warehouse straight to their homes. ASOS have a very big warehouse which has all their products in which gives them an advantage because they can send their customers products to them very quickly. ASOS also can decrease their prices as they don’t have to spend more money on suppliers.
1 Mar 2010 15:17:43

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