Distributor Middleman and World Wide Web

by Tuyen H

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            In tradition, consumers buy manufacture products through distributors or middleman. Since the World Wide Web (Internet) and E-commerce were developed, the middlemen were preplaced by the Internet.  The Internet allows business to business (B2B) and business to customer (B2C) rapidly increasing.  E-commerce becomes an opportunity for companies to achieve their competitive advantage. Online shopping allows people easily compare products’ price and functions before making decision. This article also mentions about effective Internet marketing. With the second generation of web (Web 2.0) E-commerce becomes more attractive consumer. As the result, consumers spend more money to buy goods and services directly online instead of buying them through middlemen. The authors also point out an interesting point which there is more than 90% online purchasing is made through corporate website.
           This article talks about the Internet or World Wide Web. It also mentions to E-commerce, B2B, and B2C technologies. In my opinion, Internet is the greatest innovation of nineteenth century.  It makes the world become smaller and more connected. When the Internet is increasing, many industries also are increasing special E-commerce. Not only we have Black Friday, we now also have Cyber Monday. I am very interested in the replacement of middlemen by the WWW. Indeed, under consumers’ expect shopping online is more convenience and cheaper, and under corporations’ expect E-commerce is an opportunity to achieve their competitive advantages.
           Let get Costco Wholesale Corporation for example. Costco has created an interactive online webpage which allows customers easy access to information, price, and images of products that they offer.  They also offer many services and have descriptions about each on their webpage.  Costco also has membership and location information as well as information about the company accessible to potential and existing members. By combining online and store, Costco create a competitive advantage over its competition.

References:

Jamehshooran, B. G., Danesh, E., Teimouri, M. E., & Heydari, A. (2011). The past, present and future of online marketing. Interdisciplinary Journal of Contemporary Research in Business, 3(2), 585-585-606. Retrieved from http://search.proquest.com/docview/878741451?accountid=10357