Stars Corp. decides to eliminate activities associated with collecting and storing the products by directly distributing the finished goods to its customers. This enabled Stars to reduce the total cost. Which of the following is being exemplified in this case?
A)Disintermediation
B)Low-end disruptive innovations
C)Standardization
D)High-end radical innovations

Question

Quizplus · Accepted Answer

Disintermediation is the elimination of intermediaries or middlemen in a supply chain, which is exactly what Stars Corp. is doing by directly distributing the finished goods to its customers. This strategy often leads to cost reduction for the company.