What is Disintermedia?

DISINTERMEDIATION is a strategy for removing an intermediary in terms of supply chain, market or process. The idea is that by removing the intermediary from the figure, it is possible to reduce related costs and possibly speed up the completion of any tasks associated with the process. As a result, both the originator of the task and the recipient benefits from direct interaction.

The DisinterMediation concept can be used in several different ways. One application that grows in popularity has to do with financial markets. This is partly due to the trend of increasing capital through the purchase and sale of securities rather than simply passing through the bank or other rental institution. The debtor decides to sell securities rather than bring the bank to a bank for some type of credit arrangement. For example, the debtor can create a bond problem and sell bonds directly to investors as a way to increase the necessary capital. This creates a compliance with bond issuer and bond holder, making J Je need an intermediary unnecessary.

The start of the removal of the intermediary from the retail process is also an example of how Disintermedia can benefit both manufacturers and consumers. Rather than selling products through wholesalers who indicate wholesale prices that the manufacturer has expanded to a higher retail price, the manufacturer simply expands the wholesale price directly to consumers. The manufacturer still earns money, but does not have to deal with long -term contracts with wholesalers. Consumers benefit because they have access to lower prices of desired goods by ordering directly from the manufacturer.

DisinterMediation can also be used to organize personal finances. For example, an investor may decide to remove the low interest assets that carry the account and use the means to buy securities that are likely to bring a higher return. Although the investor of the truthSimilarly, it does not involve securities with a high level of volatility, the direct purchase of the bond problem tends to bring a greater return than it would allow money to determine on the traditional savings account.

While DisinterMediation has a number of positive aspects, there are situations where the presence of a mediator is extremely beneficial. Companies that do not want to allocate sources for processing individual customers' orders can rather sell their products through wholesalers. Similarly, an entity who does not wish to apply the necessary resources to create and manage the problem of bonds may decide that obtaining a bank loan is the best overall means of obtaining the necessary capital.