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The most common cause of disintermediation has been...a.vertical conflictb.television c.parcel servicesd.vertical channelse.e-commerce

Question

The most common cause of disintermediation has been...a.vertical conflictb.television c.parcel servicesd.vertical channelse.e-commerce

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Solution

The most common cause of disintermediation has been e-commerce.

Here's why:

  1. Disintermediation refers to the removal of intermediaries in a supply chain, or "cutting out the middlemen". Instead of going through traditional distribution channels, which had some type of intermediate (such as a distributor, wholesaler, broker, or agent), companies may now deal with every customer directly, for example via the Internet.

  2. E-commerce, or electronic commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.

  3. With the rise of e-commerce, more and more businesses are able to sell directly to the consumer. This eliminates the need for intermediaries, leading to disintermediation.

  4. While vertical conflict, television, parcel services, and vertical channels can all play a role in disintermediation, none have had the same widespread, transformative impact as e-commerce.

  5. Therefore, e-commerce is the most common cause of disintermediation.

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