When an organization changes its distribution channels, it is true that: Product and service producers must reduce marketing channels in order to remain competitive. Technological advances decrease channel availability to entrepreneurial firms. Internet growth threatens disintermediation for many "brick-and-mortar" companies. Economic problems reduce available channel-options for companies. New channel development rarely causes conflict with existing channels.

Option C Internet growth threatens disintermediation for many "brick-and-mortar" companies

Explanation:

The reason is that the changes in distribution channel has resulted in decrease in intermediaries because companies today uses platforms like that of Amazon which enables them to directly interact with the customers and this is a threat to companies that have local customers. The brick and mortar companies will face higher threats of decrease in sales because large companies who are offering similar products will be marketing their products in the location the small brick and mortar company is influencing its customers. Hence the option C is correct.

Technological advances have increased the channel availability because now you can promote your product on internet and use the traditional distribution channels so the option B is incorrect.

To remain competitive the company will have to invest in the distribution channels which means it will have to extend its distribution channel access so the option A is also incorrect.

Economic problems doesn't reduces the available channel options. Usually all the internet options are easy to access with higher growth rate and have lower costs as apposed to traditional distribution channels. Hence the option D is also incorrect.

Newly developed distribution channel may conflict the existing distribution channel because the distribution channel which gives higher benefits to the supplier and the customers are the main focus of the suppliers. Hence the option E is also incorrect.

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