nufacturers to sell directly to the consumer, cutting out the traditional ideals of a middleman or intermediary. (Turban, E. et al. 2000). Turban (et al. 2000) describes this phenomenon as disintermediation. Turban, E. et al. (2000) also identifies an emerging "electronic middlemen" such as e-mail and product selection agents. This is quite naturally classified as reintermediation. (Fig 3.) Shows the prevalence of the two as a result of E-commerce developments. The evolution of the second phenomenon is commonly believe to the basis for future E-commerce practices. Hutchinson, A. (1997) suggests that this middleman effect with combine with global integration and widespread network connections. Once again Amazon.com provides are useful example of a strong electronic intermediary. When devising a marketing strategy an organisation must be aware of this shift in E-commerce structures. The awareness of how intermediaries in the distribution channel is absolutely vital to marketing strategy, and the implications of how this is changing could have a profound effect on marketing strategy formulation. FIG 3. DISINTERMEDIATION AND REINTERMEDIATION BY EC (Turban, E. et al. 2000, p.64) Implementation Issues Financial The development of Web site is fundamentally used to result in some level of revenue or a decrease in the cost. Revenue is typically based around increase sales, and decrease cost could arise due to elimination of intermediary forces. (Strauss, J. Frost, R. 1999) Therefore the basis for integration into E-commerce has an effect on financial issues, and may perhaps be the basis for the strategic formulation. As with almost any strategic plan, there are associated costs that derive, and this is reflected also in E-commerce. Such cost could be identified as follows: Connecting to the Internet (The Internet Service Provider) Hardware and software Web site and advertising designers Staff to maintain the Web sites and manage e-mail with ...
