Agora model (an adaptation of the storefront model)
List the features of the agora business model.
Agora Model (Adaptation of Storefront model)
The agora business model is one of the oldest known to mankind. Agora is a term used to describe ancient Greek marketplaces.
In an agora business model, the buyer and seller negotiate the price of an item. In ancient times, this involved traveling to the local marketplace and haggling over the price of an item directly with the storekeeper. The same principles of this model have been adapted to fit the needs of e-Commerce shoppers.
E-commerce shoppers start by entering their favorite virtual agora marketplace. We will use eBay as our example. Once
in the eBay site, the user finds items they are interested in purchasing, makes note of the minimum bid on the item,
assesses the likelihood of the item being purchased at the minimum price (the popularity of the item) and bids on the
Unlike the traditional agora marketplace, real-time negotiating does not occur between buyer and seller. Rather, the
e-Commerce version of the agora model has multiple buyers "negotiating" with each other. For instance, one
shopper bids $10 for an item, while another shopper bids $12 for the item. The goal of these "negotiations" is
to agree upon the highest acceptable price two or more people will pay for an item.
The goal of the agora business model is to convert goods into a desirable price.
The Agora mannequin for web enterprise began out as an experiment 10 years in the past. Agora publishing firm based mostly in Baltimore Maryland developed the mannequin. The mannequin has helped Agora to develop into one of many largest on-line e-newsletter publishers on the planet.
Question: What precisely is the Agora Mannequin web Enterprise?
Answer: The Agora web enterprise mannequin works by utilizing direct response advertising and marketing rules to promote info merchandise on-line. The profitable system is examined and utilized to different niches. It is a hybrid franchise enterprise spinning off worthwhile companies based mostly on confirmed enterprise techniques.
Not all b-webs are equal. We have investigated many hundreds and have written more than two hundred case studies. A number of distinct patterns emerged, with direct bearing on competitive strategy. Central to our analysis is a new typology of
business models (figure 5-7).
The typology applies to the physical business world almost as well as to the digital world. However, its digital application has
some key differences. First, organizations often shift the basis of competition from one type to another as they move from the physical world to a bweb
approach. A traditional full-service broker works (at least in theory) as a Value Chain, expertly tailoring advice to each
individual investor. An online broker like Charles Schwab or E*Trade shifts the model to an Aggregation of advisory information
and investment services, available to their customers for picking and choosing.
Second, business model innovation becomes the basis of competitive advantage. Innovators like eBay, Cisco, and Priceline
develop new ways to create and deliver value. In the process, they dramatically change the playing field and the rules of the
Finally, in the physical world, one of the types of business models, the Alliance is rare and primitive.
In the world of b-webs, however, Alliances, including innovation collaboratives like Linux, become highly visible as powerful and dynamic drivers of