Answer to Question #167609 in Marketing for Murtaza Arif

Question

Discuss whether the Internet will result in disintermediation of the following retail stores: video rental stores, music stores, and clothing stores ?

Answer 1

Q1. Discuss whether the Internet will result in disintermediation of the following retail stores: video rental stores, music stores, and clothing stores ?

Does the Internet contribute to the reduction in the use of intermediaries? Internet being a world-wide computer link providing a wide range of data and communication amenities, consisting of interconnected links with consistent communication procedures, it has led to eradication of intermediaries from the marketplace. Besides, most traditional intermediaries will soon become extinct because the internet lets producers sell directly to their customers. Traditional video rental stores are particularly vulnerable in the middle of the value chain since the Internet links the producers with their customers. Also, retail clothing stores are becoming vulnerable because the wholesalers are now marketing clothes directly to their customers on the net.