Companies opt to eliminate mediators to cut costs

12 Jun '09

2 min read

In today's world of cutthroat competition, every organization is striving to be a part of the expanding business, by promoting their products and ideas. Companies that spend a ransom on advertising their products seek other resorts to counterbalance the expenditure. To name a few like, increasing the product price if possible, eliminating mediators, layoffs and incentive cuts.

High prices will make the consumers to look for substitutes, thereby proving futile for the enterprises. In some way layoffs and incentive cuts may help but will de-motivate the other employees, and also affect the image of the company. The last option is the elimination of mediators. To reach the ultimate consumers, companies rely on mediators.

Suppliers and buyers are required to put little extra efforts to eliminate them. Nevertheless complete elimination of mediators is not possible the removal of which depends on the geographical, political and economical condition of a country.

Countries like, Bangladesh, Pakistan, Vietnam, Mongolia, Nepal, Sri Lanka and some African and South American countries really need mediators, since their economies are still under development stage. It is all dependent on the internal conditions and levels of organization, in order to deal directly with buyers.

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Fibre2fashion News Desk - India

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