Disintermediation Essay Example | Topics and Well Written Essays - 2500 words

Disintermediation - Essay Example This direct interaction between the buyers and sellers was perceived to be free from any intermediation of third party firms i.e. middlemen as technology greatly reduced the cost of searching the information regarding the buyers and sellers lessening the dependence on the middlemen. This virtual absence of middlemen kick started the process of disintermediation and it was largely believed that with advances in e-Commerce, disintermediation will increase and will result into the reduction of cost of searching the information. However, the same seem not to be happening as despite improvements in the technology and whole e-Commerce process, disintermediation did not took place as expected. This work will look into exploring the reasons behind this perceived disintermediation and e-Commerce and why it did not took place despite the bright future of doing business electronically was promised by the e-Commerce. However before discussing the core issue it will be very important that some of the latest business models and real example be explored in order to broaden the scope of our study and better understand the linkages between e-Commerce and disintermediation and future survival of disintermediation. Through traffic driving, traditional retail stores are diverting their internet website visitors to their physical stores therefore the traditional retailers as a point of defense has already started to explore a relatively new and unique model of brick and click or bricks and mortars. Bricks and Clicks are traditionally described as a sales model that utilizes both the traditional stores and internet to generate the sales. (This business model, also known as clicks and mortar or clicks and bricks, began to be used in the 1990s. The rise of the Internet opened up opportunities for online trading. Initially this was utilized by companies whose primary business was Internet-based - the so-called clicks companies. Established trading companies followed when it