Discuss whether the Internet will result in disintermediation of the following retail stores: video rental stores, music stores, and clothing store ??
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Explanation:
Discuss whether the Internet will result in disintermediation of the following retail stores: video rental stores, music stores, and clothing store ??
Sometimes when you buy a good or service, it passes straight from the producer to you. But suppose every time you purchased something, you had to contact its maker? For some products, such as a haircut, this would work. But what about the products you purchase at the grocery store? You couldn’t begin to contact and buy from all the makers of those products. It would be an incredibly inefficient way to do business.
Fortunately, companies
Answer:
Explain.Online channels have for many years been treated as a distinct, separate channel without integration to the overall bricks-and-mortar business model. This is rapidly changing as customers demand information about stock levels, delivery times and shipping options regardless of where within the retailer’s network they are situated. Whether the customers are in a physical store, on a computer or on a mobile device, they require the same service levels and access to information throughout the entire shopping experience.I feel as though one day the internet will one day rid the world of video rental stores, for example in America's, GA recently the Video warehouse there shutdown. Shocking, but there are at least 3 red boxes and now families can simply stream their movies from the internet without having to travel? Music stores is another business that might not last for too much longer, the only success will be from stores that sell music like Wal-Mart, this is because you can now buy albums from online with no issues. However on the contrary, Grocery stores, bookstores, and clothing stores shouldn’t get wiped out because of the internet. These stores will have to adapt to work with the internet and the freedom that it gives the consumer, but I feel like if marketed right, these types of stores will be around. Other stores that I feel may be challenged are stores like pawn shops and title pawns, because if people are able to use the internet to convert their property into cash with only a couple of clicks then that business could be a threat.Immediately after reading this story I looked at the situation from both sides of the fence: the consumer, and the company. From the customer’s point of view I really don’t like the idea of treating retail stores as warehouses. For one a huge disadvantage is less discounts on products, since a consumer would less likely be able to get an item at markdown because of it not being in the store, this may lead to people looking elsewhere for discounts. Another disadvantage is the idea that a retail store would lose its common retail store vibe.