Countermediation involves which of the following?

• A. Outsource production
• B. Create own intermediate to compete with competitors
• C. Increase reliance on distributors
• D. Remove step of supply chain

Answer: (B)

Countermediation is about building your own intermediary capability to compete with external middlemen, giving you more control over how products move to customers and countering the power of existing distributors. The best description is creating your own intermediary to compete with competitors, because it captures the idea of establishing a counter-channel rather than relying on others or removing intermediaries. Outsourcing production switches you to an external supplier of manufacturing, which doesn’t address channel competition. Increasing reliance on distributors means you’re leaning on others rather than creating your own channel. Removing a step in the supply chain describes disintermediation or direct channels, not countering intermediaries with your own counter-channel.