What does reintermediation involve in the value chain?

Prepare for the CIMA Strategic Management (E3) Exam with comprehensive flashcards and multiple-choice questions. Each question offers hints and explanations to ensure you are ready for your test!

Multiple Choice

What does reintermediation involve in the value chain?

Explanation:
Reintermediation means introducing new middle layers in the value chain, adding steps and new players who act as intermediaries to connect producers with customers. This often happens with digital platforms or specialist service providers that sit between the supplier and end user, adding value through better access, trust, information, or convenience. So the description that matches is adding steps to the value chain via new players. The other ideas describe removing intermediaries, reducing features, or moving production abroad, which are not about creating new middle layers.

Reintermediation means introducing new middle layers in the value chain, adding steps and new players who act as intermediaries to connect producers with customers. This often happens with digital platforms or specialist service providers that sit between the supplier and end user, adding value through better access, trust, information, or convenience.

So the description that matches is adding steps to the value chain via new players. The other ideas describe removing intermediaries, reducing features, or moving production abroad, which are not about creating new middle layers.

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