Assignment 2- Group Tasks division.

Group meeting
10th February 2009
330pm

Tasks division
Our group sector : Automobile


Pyan
i. Problems faced by the organisations within the subsector you choose;
ii. If no problems exist, identify the opportunites (eg. Business process enhancements, IT application, etc) those organisation can take;

Midi
iii. Historical background of the sub-sector
-Midi was assign to collect and edit all the task from the group member.

Zar Juned
iv. Current scenario of those sub-sector
v. Major players/ organisation in the sub-sector

Padil
vi. Market size, demands of the sub-sector (please provide statistics)
vii. Current ICT/ IS adoption within the selected sub-sector

Remember the format:
-English
-at least 20 pages
-Times New Roman font, size of 11 and single spacing.

Submitted date and deliver method: Week of 7 (13 Feb 2009) in UTM Academic Calendar.
Please submit full paper in a softcopy through e-learning system.

Good luck to evrybody!

POST BY SUFFIAN, PADIL, MIDI, ZAR JUNED

Disintermediation And Reintermediation

In the traditional distribution channel, intermediating layers exist between the manufacturer and consumer, such as wholesalers, distributers and retailers. In some countries such as Japan, one may find inefficient distribution networks with as many as 10 layers of intermediaries. These extra layers can add as much as a 500 percent markup to a manufacturer’s prices.

Intermediaries traditionally have provided trading infrastructure (such as sale network), and they manage the complexity of matching buyers’ and sellers need. However, the introduction of EC has resulted in the automation of many task provided by intermediaries. Does this mean that travel agents , real estate agents, job agency employees, insurance agents, and other such jobs and business will disappear?

Manufacturers can use the Internet to sell directly to customers and provide customer support online. In this sense, the traditional intermediaries are eliminated, or disintermediated. Disintermediation refers to the removal of organizations or business process layers responsible for certain intermediaries. In such cases, the traditional intermediaries fill new roles, providing added value and assistance. This process is referred to as reintermediation. Thus, for the intermediary, the Internet new ways to reach new customers, new ways to bring value to customers, and perhaps new ways to generate revenues.

This chapter has already featured many examples of reintermediation, where comparison shopping sites, and the like, all provide additional services to the consumer to try to build trust, confidence, and facilitate online transaction.

The intermediary,s role in shifting to one that emphasizes value-added services, such as assisting customers in comparison shopping from multiple source, providing total solutions by combining services from several vendors, and providing certifications and trusted third-party control and evaluation systems. For instances, in the world of online new and used car sales, electronic intermediaries assist buyers and/or sellers. These are new reintermediaries, intermediaries that have restructured their role in the purchase process.

An example of the new roles of intermediaries are Edmunds (edmunds.com), which gives consumers a vast amount of information about cars, including price comparisons , ratings, location of cars for sale, and the dealer’s true cost; CARFAX (carfx.com), which can research a specific used car and tell the consumer if it has ever been in an accident or had an odometer rollback; and iMotors (imotors.com), which offers members discounts on insurance, gas, and repairs. Additionally, “lead services” direct buyers to member dealers and, in some cases, also offer direct sales of new cars. The leading site in this category is autobytel.com. Others include Amazon.com’s partner CarsDirect (carsdirect.com), Autoweb (autoweb.com), and Cars.com (cars.com).

Some reintermediaries are newcomers, rivaling the traditional retail scores (e.g., Blue Nile), whereas others are additional operations established by the traditional retailers or intermediaries, such as Edmunds, that use both the old and the new intermediation methods (like click-and-mortar). Some reintermediaries cooperate with manufacturers or retailers to provide a needed service to the seller or distributor in the online environment. Other reintermediaries are virtual e-tailers that fill the unique niche. Intermediaries such as online retailers and shopping portals can also act as reintermediaries. The evolution and operation of these companies is critical to the success of e-commerce.

UPLOADED by PADIL and ZARJUNED