Disintermediation, Re-intermediation, and Counter-intermediation in Digital Business

DIGITAL BUSINESS.

Table of Contents.
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Question 1....................................................................................................................................3
Question 2....................................................................................................................................4
Question 3....................................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Supply chain is the network of all organization and individual resources, technology and
activities involved in a sale of a product. It is a network between companies and its supplier to
produce and distributed to final consumers (Agrawal, & Narain, 2018, p.012074) The process of
disintermediation, re-intermediation and counter-intermediation are managed and monitor by the
digital business to supply their products to final consumers. The digital tools help in to monitor
their products interested in the markets and the consumers are looking for the products to fulfil
their needs and wants by applying Bull-whip effect. However, the growth hacking frameworks
is being applied in the e-commerce logistic company that are dealing in door to door delivery to
C2C business.
MAIN BODY.
Question 1.
Disintermediation is the process to eliminate the intermediate or middlemen from the
business supply chain. The value of intermediate varies and changes with the factor of
technology, industry cycle, economic climate and consumer ability. The removal of different
elements from the supply chain help the company to increase its profit margin and minimize its
cost and time of the chain. It influences the overall cost of the product and remains more cost
effective compare to their competitors and have the competitor advantage in the market place.
This approach is mainly implemented by online businesses' industry (Braz, & et.al., 2018,p.
376-389). But it also comes up with some difficulties and creates burden for companies due to
removal of intermediaries, companies need to work more effectively in the process of delivering
the goods or service. Also, to handle the process, companies need more personnel and funds to
maintain the process.
For Example: Dell started the selling of their products to direct consumers when they
analysed that they can meet customer needs through direct contact with consumers and even
offers to customers to purchase their products (Moretti, & Re Cecconi, 2018, p. 46-56). It
shows that customers are able to know about the product specification more in details and
increases customer trust and loyalty towards company. Before this process, company found it
very complicated and expensive to serve their customers where intermediaries were included.
This model creates differentiation of itself from their competitor and hence became one of the
leading brands in PC industry.

Re-intermediation is the process of reintroduction of an intermediary between the
manufacturer and the consumers. It is just opposite to de-intermediaries where it eliminates
intermediary from its supply chain, re-intermediation creates new element in the supply chain.
This re-intermediation arises due to many issues which are related to the supply chain like selling
to direct consumer. It helps in to focus on creating the best end final goods for consumers (Brian
Lee, & Li, 2018,p. 964-993). It involves high cost incurred and lowers the profit margin of
company that create difficulties to maintain their position in competitive market.
For Example: Levis Strauss &co. Once decide to cut-out it's all intermediary and sell its
product directly to consumers without any middle element in the supply chain. With time, when
Levis Strauss & co founds hard to meet the requirement and effectively maintain its new supply
chain by adopting disintermediation process (Aniello, & Caneppele, 2018, p.42-62.). Company
had suffered with 6 million loss and focused on the re-intermediation process and to create the
new elements of intermediaries for the company. By adopting the process of intermediaries it
assists company to capture market again and compete in the market.
Counter mediation is the process when the companies re-intermediate and invest in the
making of new intermediaries on its own by the companies. The whole process is to control the
supply chain to eliminate competitor to gain the competitors advantage in market. The company
wants to gain to new opportunities that are available in the markets and to lead the market.
Companies had showed up with different products in markets to compete with each other and
prevent competitive advantage to lead the market.
For example: Apple.com had come out with its own app store instead of relying on the
google play store. They create the new market segment for their products and provided new
experience to their customers to gain the competitor advantage from their competitor like
Samsung and One Plus (Gilmore, 2019,p. 482-494.). It helps in to attract more of customers
towards experiencing new interface in Mobile devices and gain the competitor advantage in the
market.
Question 2.
Social media helps company to identify the needs and wants of the products that they are
looking for and are available in the market. This can be analysed through various social media
tools like Instagram marketing, Facebook marketing, email marketing and LinkedIn marketing
which are done through campaign created by companies to promote their products. Whereas,