Chapter 1

Case Study:

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

Pinterest changed its social network focus to being a search tool for “creative ideas (and potential purchases) and thereby making Google “its primary” competitor. P.44-45

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

They claim 80% of their traffic comes from mobile devices.  Their program runs inside the smartphone browser rather than being a stand-alone program and has the ease of the Buy It button for purchases. P 46

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

The ability of users to pin someone else’s content to their board without permission does infringe on copyright issue.  Pinterest however “knowingly facilitates” this by embedding the “Pin It” tool in the users’ bowser in the first place. P 46


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

E-commerce is the conduct of business through the internet, Web, mobile apps and browsers running on mobile apps.  It differs from e-business which refers to digital enabling of transactions and processes within a firm and under the control of the firm. (p. 11).  They intersect with technology infrastructure. P 10-13

5.  What are three benefits of universal standards?

      1 – Reduce search cost.

      2 – Lower market entry costs, cost to bring their goods to market.

      3 – Price discovery is simpler, faster and more accurate. P 14


10.  How are e-commerce technologies similar to or different from other technologies that have changed commerce in the past?

“The internet has shown extraordinary growth patterns when compare to other electronic technologies of the past.”  It took less time to achieve 53% share of U.S. households compare to radio and even television.   P 22

15.  Discuss the ways in which the early years of e-commerce can be considered both a success and a failure.

In the early years there was not enough bandwidth for more complex products, marketing was limited and not very powerful search engines.   There were an explosion of startup companies followed by the “dot-com crash” (p 27).  The success is the nearly perfect competitive market where price, cost and quality information are equally distributed.  Cost for search is down and merchants had direct access to customers.







Global reach


Universal standards





Not as well

Information density



Not as well

Social technology




    To:  Yahoo

From:  Lynn

In a recent comparison of the eight unique features of E-Commerce Technology, I found that Yahoo does not do well in the Personalization/Customization or Interactivity department. 

I would suggest allowing users to scroll through highlights of different categories which would entice users to click that category for additional articles.  As of right now, there is only highlights of news and other categories that visitors scroll down the page to see.  I feel it would create more interest to highlight stories for each categories in each boxed area that visitors can scroll through.