ITS 346

John Bergstrom

CH1 Assignment

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

Because Pinterest has repositioned themselves as a visual search tool for discovering and saving creative ideas and potential purchases, rather than their initial focus of being a social media platform. Pinterest have changed direction and now puts more emphasis on search than sharing and chatting with friends using their platform.

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

Pinterest are focusing on the smartphone/tablet platforms rather than desktops because they believe that smartphone and tablets are more important than desktops since 80% of their traffic comes from mobile devices. Additionally, when taking into account that more millennials own just a smartphone and a tablet, it makes more sense to optimize their operations on those platforms than desktops as millennials make out a big percentage of the active e-Commerce participants. According to Pinterest’s founder, Evan Sharp, the smartphone is the platform Pinterest will be having its main focus on going in to the future.

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

Since Pinterest is a user driven website, it enables a certain freedom for its users. Because of this, users can post images without permission or credit to the original creator. This can sometimes violate copyright and infringe on others intellectual or physical property. Even though Pinterest puts the responsibility of not violating copyrights on the users many believe that Pinterest themselves are enabling copyright violations by not taking action. Because if copyrights have been violated the original creator has to actively search for his/her content to opt-out from being shown on Pinterest.

Project Questions

1.      Search the web for an example of each of the major types of e-Commerce described in section 1.4 and listen in Table 1.3. Create a presentation or written report describing each company (take a screenshot of each), and explain why it fits into the category of e-Commerce to which you have assigned it.

B2C – Booking.com

Since booking.com is trying to reach individual consumers by offering transportation and hotels for people it is a business-to-consumer company. Booking.com is a service provider of travel where they offer their customers both transportation, hotels, and rental cars. Data is revealing that B2C e-commerce in the U.S. will continue to grow by 10% annually over the next ten years.

 

 

B2B – Grainger.com

Grainger is a fortune 500 industrial supply company from Chicago and they serve more than three million customers globally by offering motors, lighting, material handling equipment, safety supplies, and inventory management services. The majority of their revenue comes from B2B sales rather than retail, and they serve their customers through online networks such grainger.com, keepstock.com, and e-procurement. Their largest focus is to sell their products and services to other businesses in big orders (bulk), and providing them with a discount.

C2C – eBay.com

EBay.com is a multinational e-commerce corporation from the U.S. that facilitates both C2C and B2B sales through its website. As eBay’s initial success can be accredited to their C2C platform as they provided the first online platform for consumers to sell to each other, it makes the perfect example of a C2C e-commerce website.

M2C – amazon.com

As mobile e-commerce simply refers to the use of mobile devices to enable online transaction Amazon’s mobile app is a great example of M-commerce. Once a user is connected to the amazon app, they can purchase products or services from amazon with the touch of a button. M-commerce is expected to reach $180 billion in sales in the U.S. over the next five years and will be an important part of e-commerce and sales in the future.

Social e-commerce – Pinterest

Pinterest was originally a social media platform, but it quickly repositioned itself as a social e-commerce company and search tool when they realized the monetization possibilities that came with e-commerce. Pinterest is a large network of sharing of approval or disapproval of products, designs, DIY’s, and ideas to people in your network. It is intertwined with m-commerce to a large extent as most social media platforms is facilitated by smartphones and tablets.

Local e-commerce – Facebook

Local e-commerce is a form of e-commerce that is focused on engaging the consumer based on his or her current geographic location, and the Facebook marketplace is a perfect example of local e-commerce as the products available for sale are the ones in your geographical vicinity. It mostly consists of C2C sales, but in the future B2B sales will be more recurrent on the Facebook marketplace.

 

2.      Given the development and history of e-commerce in the years from 1995-2016, what do you predict we will see during the next five years of e-commerce? Describe some of the technological, business, and societal shifts that may occur as the internet continues to grow and expand.

Going in to the future of e-commerce I believe that we will start seeing more and more on-demand apps and sharing services such as Uber, Uber eats, Grubhub, Uber Freight. This e-commerce will all be based on the current direct demand of a product or service where the price is set accordingly to the demand. Moreover, as smartphones and tablets continues to become more technically powerful we will see an increase in e-commerce from mobile and tablet platforms. Businesses will have to rethink their strategies regarding physical stores as e-commerce will become an increasingly important aspect of the economy as we know it today. We will see a decline in brick and mortar stores and the number of malls will decrease significantly in the next years as e-commerce will take over their place as the main place of transaction and purchases. Additionally, with ever improving supply chains of companies and distribution methods that cuts down costs, delivery times, and increases the accessibility of products and services for people, retail sales people will be a less normal job. E-commerce is the future, and if companies wants to stay competitive they need to jump on the e-commerce train or see their profits disappear as consumers will demand more and more e-commerce services in the future, and this includes governments around the world as well.