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Channel Disintermediation
The removal of intermediaries from the supply chain, where manufacturers sell directly to consumers, bypassing traditional retail channels.
Implications
The removal of intermediaries in the supply chain or distribution process, allowing companies to sell directly to consumers, often resulting in lower costs and closer customer relationships.
Example
Example: A music label engages in channel disintermediation by selling music directly to fans through its website, bypassing traditional retail and online stores.
Related Terms
Different from channel compression, which simplifies the distribution channel, disintermediation removes intermediaries entirely, often leading to direct-to-consumer sales models.
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