IDEAS home Printed from https://ideas.repec.org/a/ids/ijesbu/v41y2020i3p450-472.html
   My bibliography  Save this article

Disintermediation: the optimal distribution strategy for small wineries?

Author

Listed:
  • Sharon L. Forbes
  • Mark Wilson
  • Khalid Alsulaiman

Abstract

This study examines the utilisation of the disintermediation strategy by a family owned New Zealand wine business. A longitudinal case study approach was used to gather qualitative data about their distribution strategy. The key finding is that this business originally earnt 95% of total revenue through selling directly to end consumers by disintermediating their supply chain. Today, that figure has reduced to 80% of total revenue and the distribution strategy now includes some indirect retail and restaurant channels. This change in distribution strategy over time has been driven primarily by consumer demand. Whilst the disintermediation strategy initially allowed the business to maximise profits, gain distribution efficiencies, and enhance customer relationships, it did not fully meet the needs of all consumers. We discuss the rationale of the various direct and intermediated channels utilised by this business and suggest that these will be useful for other small wine businesses that want to achieve similar benefits through a combination of channel strategies.

Suggested Citation

  • Sharon L. Forbes & Mark Wilson & Khalid Alsulaiman, 2020. "Disintermediation: the optimal distribution strategy for small wineries?," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 41(3), pages 450-472.
    • Handle: RePEc:ids:ijesbu:v:41:y:2020:i:3:p:450-472
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=110759
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijesbu:v:41:y:2020:i:3:p:450-472. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=74 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.