Dot.com Dot. Bomb

If the dot. com frenzy teach us something is that every frenzy is followed by a collapse. Trends can be dangerous and we need to learn from them. As promising as the dot com was the disappointment was greater. To avoid this from happening in the future we must acknowledge and learn from what happened and more important analyze the flaws the lead to the collapsing. Some of the mistakes that lead to the dot. bomb are:

1) Over saturated Industries: Anybody could enter the marked and many firms went for the same customers, too many options not many customers.

2)Running out of money: Companies ran out of money after failing to reach revenue from the lack of demand.

3)Growing Too Big Too Soon: Many companies invested more resources in growing their stock value than developing a healthy business.

 4)Poor Business model: Entrepreneurs ignored basic business rules and principles, without a strong business plan they were not likely to survive.

3)Growing Too Big Too Soon: Many companies invested more resources in growing their stock value than developing a healthy business. Because it was so easy to enter many e-industries — some software and a good website is

all that was needed — there were too many firms going after the same customers. Freedom of

firms to enter and exit an industry is one of the necessary conditions for pure competition. The

Web certainly made it easy for firms to enter most industries.1) Oversaturated Industries

Because it was so easy to enter many e-industries — some software and a good website is

all that was needed — there were too many firms going after the same customers. Freedom of

firms to enter and exit an industry is one of the necessary conditions for pure competition. The

Web certainly made it easy for firms to enter most industries.