E-Business Application: Intermediary Business Models and Amazon

This report delves into the concepts of disintermediation and re-intermediation within the e-business landscape. It starts by defining disintermediation as the removal of intermediaries, such as banking sectors, from the supply chain, and re-intermediation as the re-introduction of these intermediaries. The report then highlights the significance of intermediary businesses, emphasizing their role in facilitating direct-to-consumer models. A case study of Amazon is presented to demonstrate how it utilizes various business and revenue models. The report discusses how Amazon sources products directly from manufacturers, enabling competitive pricing, and its streamlined business-to-customer model enhances transparency and profitability. The report also mentions the customer-centric approach, including exchange processes and guaranteed products, building customer trust. The report references relevant academic sources to support its findings.

Running head: E- BUSINESS APPLICATION
E- BUSINESS APPLICATION
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Disintermediation and re- intermediation occur simultaneously within any
given market. Discuss.
Disintermediation refers to the withdrawal of funds from the financial organizations that
serve as intermediaries, for example, the banking sectors, loan associations, and the like.
Therefore, to be more precise, disintermediation refers to the process of removing the
intermediaries from the supply chain (Young, Tudor, and Capozzoli, 2016).
Re- intermediation refers to the re- introduction of the intermediary businesses as a supply
chain process within the system.
However, if the present condition of the market is considered, then it can be observed that the
intermediaries businesses or the agencies cannot really be removed from the scenario, and
therefore, they continue to co- exist together. The main business houses are solely dependent
upon the intermediary business chains in order to gain consumer or customer base, as the
intermediary business houses are needed to maintain the business process and solve issues
related to the direct- to- consumer model, by adding new elements to the supply chain model
(Young, Tudor, and Capozzoli, 2016).
Select an intermediary site and assess how well it makes use of the range of
business models and revenue models available to it through the Internet.
Amazon is an excellent example of the intermediary business house that is providing a
wonderful service to the customers. It is one of the dominant online services that is most used
and therefore popular. Amazon is getting the products from the prime business houses
directly, and is selling the same to the customers at a cheaper rate than the retail chains.
Since, it is involved in direct business with the manufacturing houses, therefore, they can
provide the products or items at a cheaper rate (DaSilva, and Trkman. 2014). Also, as the

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organization is marinating only one layer within the business to customer model, therefore, it
can maintain a much transparent business process, and can get a greater profit than the retail
chains. Also, the products provided come with perks, such as, exchange processes, and
involve assured and guaranteed products, which gain the organization the trust of the
customer.

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References:
DaSilva, C.M. and Trkman, P., 2014. Business model: What it is and what it is not. Long
range planning, 47(6), pp.379-389.
Young, J., Tudor, R.K. and Capozzoli, E., 2016. The Use of Electronic Marketing Channels
For Disintermediation: A Historical Examination Of Producers’ Behavior. B> Quest.

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