ITS 380



Case Study


1.    Why does Pinterest view Google as its primary competitor?

Because it describes itself as a search tool just like Google, not a social network like Facebook.

2.    Why does Pinterest focus on the smart-phone platform when it develops new features and products?

Because a lot of sites are turning towards mobile platforms. Consumers like them better because they are more convenient (no need to carry a laptop), are usually more streamlined, and have less irrelevant ads.

3.    Why is copyright infringement a potential issue for Pinterest?

Because it allows users to post images without the creators permission or attribution. And as of yet there hasn’t been a lawsuit to settle the issue.


Chapter Questions


1.    What is e-commerce? How does it differ from e-business? Where does it intersect with e-business?

E-commerce, in the popular sense, can be defined as: The use of the Internet and the Web to conduct business transactions. A more technical definition would be:

E-commerce involves digitally enabled commercial transactions between and among organizations and individuals. E-commerce differs from e-business in that no commercial transaction (an exchange of value across organizational or individual boundaries) takes place in e-business. E-business is the digital enablement of transactions and processes within a firm and therefore does not include any exchange in value. E-commerce and e-business intersect at the business firm boundary at the point where internal business systems link up with suppliers. For instance, e-business turns into e-commerce when an exchange of value occurs across firm boundaries.

2.    What is information asymmetry?

Information asymmetry refers to any disparity in relevant market information among the parties involved in a transaction. It generally applies to information about price, cost, and hidden fees.