Growth Potential of the Market Force of Intermediary Structures

Olga Kibik,Iuliia Khaiminova,Viacheslav Kotlubay,Kateryna Belous,S Panchenko,V Dykan,G Vatulia

doi:10.1051/shsconf/20196704006

Abstract

The aim of the study is to determine the extent and prospects development of market potential of intermediary structures using an example of waterway transport enterprises. Economic liberalization, development of international economic activity, fragmentation and distantness of suppliers and buyers as preconditions for development of intermediary business structures are determined. The main factors hindering the development of intermediary activities are identified, for instance, imperfect regulatory framework, insufficient intermediary’s professionalism, insecurity from intermediaries, low level of responsibility to counterparties, general distrust. Transport companies, in particular, the waterway transport enterprises, are identified as intermediaries that have a significant influence for development of individual economic agents and economic systems. Prospects for the development of sustainable mutually beneficial economic relations or the mutual benefit, the availability of effective information flow, a clear definition of roles, rights and obligations of the involved parties, mutual coordination of behaviour of intermediary structures and clients defined as the main conditions for development of effective interaction of intermediary structures of water transport and clients. In the matter of further studies, attention should be paid to improvement of strengthening mechanism for the responsibility of intermediary structures and clients.

Highlights

Present development conditions of economic activity are characterized by the growing role of intermediaries
Liberalization in the economic sphere, the development of global economic activity, the fragmentation and remoteness of suppliers and buyers should be considered as main factors
Intermediary activity is an important element of the economic system of each country

Summary

Introduction

Present development conditions of economic activity are characterized by the growing role of intermediaries. An economic agent commissions intermediary services and expects to improve conditions and results of selling his product. The possibility of loss of market control, opportunistic behaviour of the intermediary, increasing the agent's dependence on the results of mediation activity, increasing the number of stages of the goods supply, that significantly increase expense of the economic agent, the impossibility of controlling the level of the final price of the goods should be noted as the main risks. Some Japanese distribution channels include more than ten intermediaries. Such number of intermediaries is leads to rise price by 500 % [2]

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Results

Conclusion