Disintermediation Swot Analysis

From the written above it is noticeable that new technologies offer many different opportunities and simplify the process of buying and selling. All possible benefits of using the Internet for business can be broadly divided into two categories. First types of advantage are direct financial benefits, such as revenues from sales and cost savings. Another sort of advantages is non-financial benefits, for example improvement of reputation of the company or strengthening of corporate image.

First, e-commerce activities are no longer restricted by geographical boundaries in time barriers. E-commerce organizations can reach the global market and sell products and services. Business transactions are executed 24 hours a day and even on holidays and weekends. That means that company which buys raw materials by internet

In B2C website, manufacturer can sell products directly to consumers. This process of removal of business layers responsible for intermediary functions is called Disintermediation.

Nowadays, a new electronic intermediary breed is emerging like e-mall and product selection agents are emerging. This process of shifting of business layers responsible for intermediary functions from traditional to electronic mediums is called Reintermediation. C2C – in this situation the role of seller is played by ordinary customer. He could sell his own goods or resell products from the internet. These include mainly various auctions or advertising.

EDI stands for Electronic Data Exchange. EDI is an electronic way of transferring business documents in an organization internally between its various departments or externally with suppliers, customers or any subsidiaries etc. In EDI, paper documents are replaced with electronic documents like word documents, spreadsheets