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CMA Final · Entrepreneurship and Startup · Types of New Age Business

Kisan Fresh, a startup, sells farm vegetables directly to urban consumers through a mobile app and bypasses wholesalers and retail intermediaries. In new-age business terminology, this strategy is best described as:

The strategy is disintermediation through a direct-to-consumer model. By selling vegetables straight to urban buyers through its app, the startup cuts out wholesalers and retailers, capturing the margin and customer data. It does not involve acquiring suppliers, diversifying, or franchising.

  1. ADisintermediation through a direct-to-consumer modelCorrect
  2. BHorizontal diversification into unrelated products
  3. CBackward integration through acquisition of suppliers
  4. DFranchising of the brand

Explanation

Removing wholesalers and retailers from the chain and selling straight to end consumers is disintermediation, the core of the D2C model. Backward integration requires taking over suppliers, which is not described, and nothing suggests unrelated products or franchising.

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