Key important trends to note is that all forms

Key Issues & Assumptions

The importance of the Internet for e-commerce
is beyond necessary for the success of online retail. The creation of
smart-phones and development of apps has greatly increased the usage of the
Internet as a means of making money. In 2016, app sales alone accounted for
over $59 billion in revenues worldwide. This figure is nothing compared to the
future estimates of over $100 billion in revenue by 2020 With reference to the 1990’s and the creation of the
World Wide Web, the Internet including apps would not be possible. The World
Wide Web is an information system that runs on the Internet Infrastructure and
provides access to billons of web pages indexed by Google and other search
engines. The Internet before the Web was primarily used for text
communications, file transfers, and remote computing (Laudon & Traver,
2017). To be blunt, the Web added features such
as colour, audio and video to the Internet, achieving the qualities of a
communications infrastructure and information storage system that rivals
cable, radio, print magazines, and libraries. The development of the Internet
infrastructure also birthed the mobile platform. The mobile platform provides user’s
access to the Internet through a variety of devices such as smartphones, tablets,
and laptops. In 2016, there were over 360 million mobile devices in the United
States that could be connected to the Internet (eMarketer, Inc., 2016b, 2016c).
In 2016, Canada had approximately 22.8 million mobile device users (Gordon,
2018). These values just like retail e-commerce have been growing at a constant
rate. From a business perspective, one of the most important trends to note is
that all forms of e-commerce continue to show vast growth. E-commerce effectively
uses the Internet, the Web, mobile apps and mobile devices to conduct and
transact business. Social networks such as Facebook, Pinterest, and Instagram
are enabling Social e-commerce by providing advertising, search, and buy
buttons that enable consumers to purchase products.

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With our focus on Pinterest, their growth in
the e-commerce market can be attributed to many things. The Internet and mobile
platform provide a global space that allows millions of people to create and
share content, and establish and strengthen social bonds. Pinterest allows you
to create virtual scrapbooks of images, video, and other content that you “pin”
to a virtual bulletin board or pin board. Pinterest operates using social
e-commerce enabled by social networks and online social relationships. The
growth of social e-commerce cannot be fully quantified because it is growing at
a constant rate similar to retail e-commerce. This constant growth can be
attributed to the increasing number of mobile apps users, and implementation of
social commerce tools such as buy buttons, shopping tabs, and virtual shops on
Facebook, Instagram, YouTube and our case in discussion Pinterest. In
Pinterest’s case, their organizational niche capitalizes on the fact people
love to collect things and show off their collections to others. Pinterest likewise
other e-commerce companies have transformed the standard media model by giving
users the power to create and distribute content on a many-to-many model of
mass communication. Pinterest originally began as a social network. However, Pinterest
has now changed its direction and describes itself as a visual search tool for
discovering and saving creative work. Furthermore, Pinterest has now placed search
as their organizational mission and views Google as its primary competition. I
pose the question, “Will the new market positioning of Pinterest damper their
organizational structure and negatively affect revenue?”