Question

Consider the statement: “It’s important in business today for all firms to work to cut out the middlemen. Intermediaries represent costs that can be saved by finding ways to cut them out of the system. Down-channel buyers always benefit when this happens.”

Do you agree with this statement? Why or why not? Discuss and be specific in arguing your points.

Answer 1

Yes, it is important in the business today to eliminate the middleman because it would be helpful as follows-

A. it would be helpful in order to increase the overall profits of the company because middleman will be involving cost related to them.

B. it would also be helpful in management of a better relationship with the customers because of the elimination of the intermediaries.

C. This will also be helpful of retention of the customer and better satisfaction of the customer because the company is directly liable to their satisfaction and there fulfillment of various quality needs.

D. It would help the company in order to to enhance the workforce better and manage the marketing strategies better through elimination of any third parties.

E. It would also save from sharing of the confidentiality and other related statements of the company to the middle man because middleman would have known various goals of the company as well and they would have acted accordingly with the customers so it will be helpful in saving from sharing the confidential information.

F. it would also be helpful in customer centric approach management of the organisation so that it can help itself sustain in the longer period through better ethical management as there would be better public disclosure requirements.