Disintermediation refers to the removal of intermediaries, such as distributors, agents, or brokers, from a supply chain or transaction process. This direct-to-consumer (DTC) approach allows businesses to interact directly with their customers, reducing costs, increasing efficiency, and gaining greater control over customer relationships.
Why is disintermediation important for startups?
Disintermediation is vital for startups as it enables them to save costs by eliminating intermediary fees and gain direct access to their customers. By bypassing traditional middlemen, startups can collect valuable customer data, which allows them to personalize experiences and improve product offerings.
What are some real-world examples of disintermediation?
Disintermediation occurs in various industries. For instance, e-commerce startups often sell directly to consumers through their websites, cutting out retailers. Similarly, independent musicians use platforms like Spotify or YouTube to distribute their music directly to fans, bypassing record labels. Another example is SaaS companies that deliver software directly to users without relying on resellers or IT consultants. These examples highlight how businesses can streamline their processes and directly engage with their audiences.
Or want to know more about pre-seed funding?
