What does disintermediation mean?

Definitions for disintermediation
dis·in·ter·me·di·a·tion

This dictionary definitions page includes all the possible meanings, example usage and translations of the word disintermediation.

Wiktionary

  1. disintermediationnoun

    The removal of funds from a financial institution such as a bank for direct purchase of financial instruments.

  2. disintermediationnoun

    The removal of an intermediary from a commercial transaction.

    The news industry is undergoing a massive disintermediation due to the ubiquitous low-cost communication made possible by the internet.

Wikipedia

  1. Disintermediation

    Disintermediation is the removal of intermediaries in economics from a supply chain, or "cutting out the middlemen" in connection with a transaction or a series of transactions. Instead of going through traditional distribution channels, which had some type of intermediary (such as a distributor, wholesaler, broker, or agent), companies may now deal with customers directly, for example via the Internet.Disintermediation may decrease the total cost of servicing customers and may allow the manufacturer to increase profit margins and/or reduce prices. Disintermediation initiated by consumers is often the result of high market transparency, in that buyers are aware of supply prices direct from the manufacturer. Buyers may choose to bypass the middlemen (wholesalers and retailers) to buy directly from the manufacturer, and pay less. Buyers can alternatively elect to purchase from wholesalers. Often, a business-to-consumer electronic commerce (B2C) company functions as the bridge between buyer and manufacturer. However manufacturers will still incur distribution costs, such as the physical transport of goods, packaging in small units, advertising, and customer helplines, some or all of which would previously have been borne by the intermediary. To illustrate, a typical B2C supply chain is composed of four or five entities. These are the supplier, manufacturer, wholesaler, retailer and buyer.

Wikidata

  1. Disintermediation

    In economics, disintermediation is the removal of intermediaries in a supply chain, or "cutting out the middleman". Instead of going through traditional distribution channels, which had some type of intermediate, companies may now deal with every customer directly, for example via the Internet. One important factor is a drop in the cost of servicing customers directly. This can also happen in other industries where distributors or resellers operate and the manufacturer wants to increase profit margins, therefore missing out intermediaries to increase their margins. Disintermediation initiated by consumers is often the result of high market transparency, in that buyers are aware of supply prices direct from the manufacturer. Buyers bypass the middlemen to buy directly from the manufacturer, and pay less. Buyers can alternatively elect to purchase from wholesalers. Often, a business-to-consumer electronic commerce company functions as the bridge between buyer and manufacturer. To illustrate, a typical B2C supply chain is composed of four or five entities: ⁕Supplier ⁕Manufacturer ⁕Wholesaler

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Numerology

  1. Chaldean Numerology

    The numerical value of disintermediation in Chaldean Numerology is: 3

  2. Pythagorean Numerology

    The numerical value of disintermediation in Pythagorean Numerology is: 8

Popularity rank by frequency of use

disintermediation#100000#171044#333333

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"disintermediation." Definitions.net. STANDS4 LLC, 2024. Web. 6 May 2024. <https://www.definitions.net/definition/disintermediation>.

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