When an organization changes its distribution channels, it is true that: Product and service producers must reduce marketing channels in order to remain competitive. Technological advances decrease channel availability to entrepreneurial firms. New channel development rarely causes conflict with existing channels. Internet growth threatens disintermediation for many "brick-and-mortar" companies. Economic problems reduce available channel-options for companies.

Question

Hadassah Underwood

Business

14 April, 06:14

When an organization changes its distribution channels, it is true that: Product and service producers must reduce marketing channels in order to remain competitive. Technological advances decrease channel availability to entrepreneurial firms. New channel development rarely causes conflict with existing channels. Internet growth threatens disintermediation for many "brick-and-mortar" companies. Economic problems reduce available channel-options for companies.

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Pamela Donovan · Answer 1

Internet growth threatens disintermediation for many "brick-and-mortar" companies.

Explanation:

Remember, channels of distribution refers to the methods companies use to transfer their finished goods to their customers.

It is ever more true today that channels threatens to reduce (cause disintermediation) of brick and mortar companies, evidently seen in the use of ecommerce by companies to cut off wholesalers and reach final consumers themselves.