Electronic Commerce
Distribution Channels: Disintermediation
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Disintermediation in Electronic Commerce: Collapsing Channels and Value Gaps, Slides of Fundamentals of E-Commerce
The concept of disintermediation in electronic commerce through real-life examples of firms 'changing the channel' in various industries. Topics covered include collapsing channels, value gaps, and the long tail. Case studies on expedia, bluenile, and netflix are provided, along with revenue sharing models for dvds.
Typology: Slides
2012/2013
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Electronic Commerce
Distribution Channels: Disintermediation
Topics Covered
• Collapsing Channels
– Failures & successes– the role of value gaps
• Firms ‘changing the channel’
– Expedia & the travel industry– BlueNile & the jewelry industry– NetFlix & the movie industry
Value Gaps
customers
retailer
distributor
source firm
Value Added = A,
Expense = X
Value Added = B,
Expense = Y
Expense Savings = (X+Y) - Cost of New Effort Value Gap = (A+B) - Value Added by New Effort