Which of the following is an example of disintermediation?Group of answer choicesDonuts Haven, a fast-food chain, expands its menu beyond breakfasts by adding snacks that act as substitute meals to compete with other food chains in the area.Kasapreko, a market leader in alcoholic beverages, expands its market by providing its drinks to working women in urban areas.Agorwu, a furniture manufacturing firm, starts selling directly to its customers after experiencing a dip in sales due to channel conflicts between retailers.Kantanka, a car manufacturing company, markets most of its four-wheel drives in communities with bad roads.
Question
Which of the following is an example of disintermediation?Group of answer choicesDonuts Haven, a fast-food chain, expands its menu beyond breakfasts by adding snacks that act as substitute meals to compete with other food chains in the area.Kasapreko, a market leader in alcoholic beverages, expands its market by providing its drinks to working women in urban areas.Agorwu, a furniture manufacturing firm, starts selling directly to its customers after experiencing a dip in sales due to channel conflicts between retailers.Kantanka, a car manufacturing company, markets most of its four-wheel drives in communities with bad roads.
Solution 1
The example of disintermediation in the given choices is: "Agorwu, a furniture manufacturing firm, starts selling directly to its customers after experiencing a dip in sales due to channel conflicts between retailers."
Disintermediation is the process of removing the middleman or intermediary from the supply chain. In this case, Agorwu is removing the retailers (the intermediaries) and selling directly to the customers.
Solution 2
The example of disintermediation in the given choices is: "Agorwu, a furniture manufacturing firm, starts selling directly to its customers after experiencing a dip in sales due to channel conflicts between retailers."
Disintermediation is the process of removing the middleman or intermediary from the supply chain. In this case, Agorwu is removing the retailers (the intermediaries) and selling directly to the customers.
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