 Disintermediation: the optimal distribution strategy for small wineries?Sharon L. Forbes, Mark Wilson and Khalid Alsulaiman International Journal of Entrepreneurship and Small Business, 2020, vol. 41, issue 3, 450-472 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. Keywords: wine; supply chain; disintermediation; distribution. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijesbu:v:41:y:2020:i:3:p:450-472 Access Statistics for this article More articles in International Journal of Entrepreneurship and Small Business from Inderscience Enterprises Ltd |
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