Disintermediation and Reintermediation Assignment
Added on 2019-12-03
10 Pages2738 Words187 Views
Critical Analysis
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3PRACTICES OF INTERMEDIATION, DIS-INTERMEDIATION AND RE-INTERMEDIATION (IDR CYCLE)..............................................................................................3IMPLICATIONS OF INFORMATION EXCHANGE BETWEEN THE FIRM AND ITSINTERMEDIARIES AND CONSUMERS.....................................................................................6Implications of information exchange between the firm and its.................................................6intermediaries..............................................................................................................................6Implications of information exchange between the firm and its.................................................7consumers...................................................................................................................................7CONCLUSION .............................................................................................................................7REFERENCE ..................................................................................................................................9
INTRODUCTIONIn the contemporary business environment, supply change management plays mostcrucial role in the success of an organization. For development of an efficient distributionsystem, companies consider several concepts that have significant impact in business policies. Itincludes intermediation, dis-intermediation and re-intermediation. These elements play vital rolein decision making along with market related operation (Kim, Nam and Stimpert, 2004). Thisreport examines all these factors with reference to business operations of Nokia. The companywas found in 1965. It is one of the leading telecommunication and mobile device manufacturingcompany of the world. In 2013, Nokia was acquired by Microsoft (Nokia About Us, 2015). Thisreport is going to analysis different factors of distribution system which are used by anorganization such as intermediation, dis-intermediation and re-intermediation. Apart from thatthis report is also discussing the implications of information exchange between the firm and itsintermediaries and consumers. PRACTICES OF INTERMEDIATION, DIS-INTERMEDIATION AND RE-INTERMEDIATION (IDR CYCLE)Intermediaries are having significant role for managing distribution, sales and marketingof different goods and services as per the nature of products. In this context, it has been analysedthat the industry relationships among buyers, suppliers and middlemen have been changed overtime due to three types of events that change as per the nature of transaction process such asintermediation, dis-intermediation and re-intermediation (Jap and Mohr, 2002). It is examinedthat the importance of intermediation is greatly increased when a new firm interjects itself amongbuyers and suppliers. In addition to that disintermediation is carrying out when an establishedmiddleman is pushed out of a market niche. At the end, reintermediation occurs when a oncedisintermediated player is able to re-establish in the market itself as an intermediary (Chircu andKauffman, 1999). This process is called IDR cycle. In the context of Nokia, company has more than 10 manufacturing plants located in 9countries such as Brazil, India, China, Finland, UK, Hungary etc. In order to manage distributionof different products, business entity uses several channels such as redistribution, dealer,franchisees etc. In 1995, there is significant transformation identified in supply chainmanagement of business entity (Nokia About Us, 2015). In this process, business entity hasintegrated various element of business management by linking suppliers, factories, telecom3
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