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Increase in Disintermediation

Stan davis introduced disintermediation to mean the elimination of intermediate steps or organization allow buyers

and sellers to come closer together, often dealing directly with each other without having to go through any intermediate organizations. For example, when travelers purchase airline tickets directly from the airlines through the Internet, they eliminate the need for a travel agent. Likewise, trading stocks and bonds on the Internet eliminates the need for a stockbroker. Similarly, many manufacturers now sell their products directly to consumers, eliminating the need for distributors and/or retailers. eBay, the online auction firm, is doing exactly this by providing a network that directly links buyers and sellers.