Product Marketing Strategy helps manufacturers with product marketing, product strategy, and marketing strategy to maximize profitability over the product life cycle.

Disintermediation Strategy

Disintermediation in Grove City, PADisintermediation Strategy arrived with the birth of commerce on the internet. The whole idea was to eliminate the middleman in a transaction.

In the early days, I was a co-founder of an internet company called ToolSource. I was absolutely convinced that not only did the internet make disintermediation possible, but that it would quickly replace traditional, multi step distribution of products. While I was correct in my assessment of the potential of disintermediation, I was totally wrong in my estimation of the speed with which this new strategy would be accepted and implemented. The transition has been and continues to be slow for a variety of reasons. The most successful users of disintermediation strategy are new businesses selling new technology.

Amazon has proven to be the leader of the pack in disintermediation. They have revolutionized book sales. As a result, many of the traditional brick and mortar businesses have established their own web businesses. (These are not to be confused with disintermediation.) Glenn Beck has seized on the opportunity and established the Marketplace by the Blaze. There are also individual enterprises that have started their businesses without traditional distribution.

There is another area where disintermediation may have demonstrated even more success. Education is being revolutionized by the web. Probably the best known example is Kahn Academy. They provide, “A free world-class education for anyone anywhere.” My nephew, Dan Fullerton is active in this arena with his A Plus Physics website. It is a combination of text and video.

People are like snowflakes, each one is different with different skills, different interests and different needs. In our world of choice, it only makes sense that we develop a more customized approach to education which can easily happen with the use of the internet. At the same time, the potential exists to eliminate the middlemen in education at the Federal and State levels thereby reducing costs and increasing options or choice.

Disintermediation is real, it is just a matter of time until more old line institutions are replaced with more cost effective, and customized choices are available to us all.


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    head-and-sholders  Robert Cannon

       With over 30 years of expertise in marketing, and leadership, Bob creates innovative systems, 
       products and services for small to mid-size manufacturers. Contact Bob today for more information 
       on the Cannon Advantage services and solutions.