Case Study Questions (page 47)
1. Why does Pinterest view Google as its primary competitor?
It is because Pinterest defines itself as a visual search tool for discovering and searching has become its core part of its mission. Since Google is also a search engine or a search tool, Pinterest views Google as its primary competitor.
2. Why does Pinterest focus on the smartphone platform when it develops new features and products?
In 2016, 80% of Pinterestís visitor traffic came from devices. It shows majority of the users access from their mobile device. So it is important for Pinterest to update their application with new features; this means they are reaching majority of their audience.
3. Why is copyright infringement a potential issue for Pinterest?
The business model of Pinterest itself is basically a virtual scrapbook that you can share and pin any pictures that you liked when you browse through othersí pages. So people can easily access othersí page and take an idea from them at least without taking a permission from the original producer. Even though the Terms of Services notifies users not to do so, the program itself allows to do so.
Questions from Projects (page 50)
1. What is information asymmetry?
It refers to difference in relevant market information among parties in a transaction.
2. What is a marketspace?
It is marketplace extended beyond traditional boundaries and removed from a temporal and geographic location. The stores donít necessarily have to have a physical store to sell products and the customers donít have to visit a physical store to buy products.