1.1 Identify and assess the problems and benefits of the network that adabra has created. adabra is a new internet company that has created a virtual network to access, supply and service its customers with a wide range of products, covering categories including home and garden, sports and leisure, and office and communication.

Products sold include cameras, televisions, microwave ovens, telephones, golf clubs and computing equipment. adabra.com specialises in community buying. By linking with interested customer groups, such as over-50s portals, sports and leisure clubs or individuals through its website, it encourages people to come together and gain discounts from bulk buying. By offering the latest branded products at a range of prices, depending upon the number bought within a certain time-frame, its customers can save up to 30 per cent on normal retail prices. Vincent O’Farrell, the company’s consultant operations director, summarises the service:

‘This is not “auction buying” where consumers compete against each other and drive the price up. adabra is about co-buying, or community buying, which is about consumers working with each other to drive the price down.’