Strategies used by organizations

Last Updated: 10 Jan 2022
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There are certain strategies used by organizations when it comes to their intermediaries. There are three main terms – disintermediation, re-intermediation, and counter-mediation. Disintermediation is the elimination of any intermediary or intermediaries from the overall supply chain or distribution process (Pieterz, 2010). Contrastingly, reintroducing or the intermediaries in the supply chain or distribution process is called re-intermediation. This mostly happens when the products and target audience are of wide range and require extensive distribution channels or members (Investopedia, 2010).

And finally, counter-mediation is the ‘creation of a new intermediary by an established company’ (Chaffey, 2010). Answer (b) Since the emphasis is being laid on cost-cutting by the managers these days so the overall business objectives of the business would define what strategy should the manager adopt. Managers decide the most appropriate approach depending on the preferences they have. For instance, if they have to distribute their products to wide range of audience then they would adopt counter-mediation or re-intermediation approach.

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And those who already have enough distributors and want to save costs then disintermediation might be the best suitable strategy. Answer (c) A manager’s desired marketplace structure might be the selling of products or services online in order to provide the customers with utmost convenience. Moreover, targeting wide range of audience, bringing efficiency in the business, and saving redundant costs might also come under desired marketplace structure.

Therefore, managers can adopt strategies to conduct business online, sell online, introduce a website having several features and options, promoting the products using Direct Marketing tools such as, email marketing or using social networking websites like Facebook, Twitter, or MySpace. Also, integrating the firewall and anti-spam softwares in the website would reduce risks of fraud and maintain the customers’ trust (ResearchStarters, 2008). References Chaffey. D.

(2010). Counter-mediation. Retrieved on August 16, 2010. From http://www. davechaffey. com/E-marketing-Glossary/Countermediation. htm Investopedia. (2010). Re-intermediation. Retrieved on August 16, 2010. From http://www. investopedia. com/terms/r/reintermediation. asp Pietersz. G. (2010). Disintermediation. Retrieved on August 16, 2010. From http://moneyterms. co. uk/disintermediation/ Research Starters. (2008). Internet Marketing Strategies. EBSCO Publishers.

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