1. Napster Is a Good Example of a System That Has Elements from Both E-Commerce I and II

Amina Ali

January 15th, 2002

ECT 250

Professor Mirza

Chapter 1-2 Case Study

Chapter 1

1.  Napster is a good example of a system that has elements from both E-Commerce I and II.

Some elements that are indicative of E-Commerce I is that Napster was entrepreneurial. It was one of the first systems that used p2p to share music files. In the beginning it was ungoverned and unregulated. It was also financed by some of the leading Silicon Valley venture capital firms. When E-Commerce II began, Napster changed quite a bit. After having to be completely shut down from losing in court, Napster created a legal version, where now, they are charging a subscription fee (more business driven and earnings and profits emphasis) and are being regulated more.

2.  Napster falls into the p2p e-commerce category.

3. Napster raised a few social issues within the music industry. The Recording Industry

Association of America (RIAA) sued Napster for copyright infringement. Napster users

questioned if sharing music files was really illegal. The “fair use” doctrine of copyright law

permitted individuals to make copies of musical records and share it among their peers, but

some questioned if Napster was taking it too far. I believe that Napster is perfectly legal, but

since it was ruled legal in courts, I can see why colleges ban it from their campuses; hey

don’t want to be a part of anything illegal.

Chapter 2

1.  Some of Priceline’s core components of their business model is that it is a revers-auction pricing system (deman collection system). It helps both the consumer and the business.

2.  I think Priceline will ultimately succeed only if it focuses on the airline ticket business. In the past couple years, whenever I buy tickets, I have mainly used priceline, as opposed to Orbitz, or other travel websites. I like Priceline because I can name my own price, and I usually do find that I get a better bargain there.

3.  Priceline had a good impact on airlines, allowing them to sell tickets that they probably wouldn’t have been able to sell if they weren’t available on Priceline, and airlines are still making a good profit.