When the internet first made an appearance in the business world, outside of government and military use, the term dot.com was introduced. The technical term “.com” is defined as a suffix used to describe a company that uses the internet as a primary or only marketplace for transfer of goods and services. It was being used as a suffix to the several existing web addresses. It only took a few months for .com websites to become the dominant form of business transaction (Simpson & Simons, 1998). The phenomenon behind this story lies in the rapid rise and fall of the dot.com companies and the players, events, and mindsets that accompanied the bubble boom and bust (Simpson & Simons, 1998). In 1995 Netscape was one of the first dot.com businesses to enter the NASDAQ Stock Exchange, an automated exchange which has, since the Dot.com power struggle, become associated primarily with technology shares. At that time the NASDAQ was still not considered a technology exchange and Netscape entered the exchange. In 2000 the NASDAQ 100 Composite index peaked at 5,132 points at more than 500% from its original level in 1995. America was in the grip of dot.com hysteria and anybody with little more than an idea could launch a web-based company and become “paper millionaires” almost overnight. It is important to note that the NASDAQ 100 Composite Index only started out at 100 points (Morrison & White, 2000). The overall mentality of the business approach of investors dramatically changed from investing through business models and principles to a “gold rush” (Senn, 2000) similar to the way things occur before the stock market closes today. Many people believed that the “new economy” businesses would become the blue-chips of the future. It is note-wor... ... middle of paper ... ...orrison, M., & White, C. (August, 2000). Super.Com: An analysis of message strategies utilized in super bowl ads for dot.Com companies. Paper presented at the Association for Education in Journalism and Mass Communication, Phoenix, AZ. Mougayar, W. (1998, November 2). E-commerce? E-business? Who e-cares? Computerworld Parker, R. P., & Grove, C. B. (2000, July). Census bureau moves ahead on measuring e-business. Business Economics, 35, 63-65. Senn, J. A. (2000). Electronic commerce: Beyond the “dot com” boom. National Tax Journal, 53(3), 373-383. Simpson, G. R., & Simons, J. (1998, October 8). The dotted line: A little Internet firm got a big monopoly. The Wall Street Journal, pp. A1. White, C., & Scheb, J. (2000). The impact of media message about the Internet: Internet anxiety as a factor in the adoption process in the U.S. New Media and Society, 2(2), 181-194.
Shmoop Editorial Team. "The Market Revolution Summary & Analysis." Shmoop University, Inc. Shmoop.com, 11 Nov. 2008. Web. 4 Nov. 2011. .
Posted recently by T.J. Straith on a British website titled I-resign.com- a kind of online financial resource that offers information and services to individuals in the modern workplace –the article "Dot.com? Don’t bother!" provides a somewhat comical yet focused, criticism-based look into the pitfalls associated with investing in today’s tech-related startup companies- the kind that base future earnings, market demand and overall success on guestimation and facts from the current market.
7.Gregory Wester, Stephen Franco. The Internet Shakeout 1996. Interactive Commerce Research Bulletin. the Yankee Group, Boston, MA. December 1995
Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...
In summary, “Internet activities are not most significant in competition, such as informing customers, processing transactions, and procuring inputs”. (Porter, 2001) significant corporate assets--skilled employees, proprietary product, and efficient logistical systems – these factors are the most important to keep competitive advantages. In fact, it is foreseeable that the Internet's evolution will come up in the future involve a shift “in thinking from e-business to business, from e-strategy to strategy”. (Porter, 2001)Only by integrating the Internet into overall strategy will this powerful new technology become an equally powerful force for competitive advantage.
The rapid growth of the internet worldwide in the early 1990s sparked a technological revolution that continues to shape the world we live in today. This boom brought with it the perception of limitless opportunities and success in the "dot com" world. As a result, entrepreneurs of all kinds took to the internet with their ideas. After the initial rush into this new-found gold mine, the advantages of the World Wide Web were apparent to all who came to know and love it. While the success of opportunities appeared to have come to a screeching halt, several entities still continue to make the best of the situation. Today, names such as EBay and Amazon are commonplace in almost every household with a computer and internet connection. But, perhaps even more surprisingly, the name Google has become more than just a silly word with a meaning most people do not know. It represents a story of unbelievable success in a market that did not take kindly to small competitors. Google Inc. is now a major public corporation in the United States, but going back to its inception, growth, and success, we witness a truly compelling story.
Every year, millions of viewers from around the world tune in to watch one of the most exhilarating events in sports unfold--the Super Bowl. The one-game, winner-take-all contest for supremacy in the National Football League has grown into more than just a football game opposing the best teams of the NFL. It has become the premier event for new television advertising. With half of the ten, all-time most watched television events having been Super Bowls; networks are able to sell precious seconds of airtime to large companies for millions of dollars. As we move into the 21st century, publicity for the game’s commercials has come to rival that of the game itself.
An interesting historical paradox is that, although the Internet has U.S. Defense Department origins, it is scarcely perceived as a public utility by most users anymore. (Abrahamson, JMQC vol 75, no 1, p. 16) Public reaction to the specific and continuing privatization of the Internet has been anything but an organized protest. Greater portions of it have, in name as well as effect, become privatized by larger corporations. This includes Microsoft, the largest player in the nation’s information technology marketplace. This conglomerate is widely recognized as a commercial enterprise with well-documented monopolistic tendencies.
The Internet boom of the 1990’s gave rise to the popularity of America Online AOL and Time Warner saw themselves at a crossroads where old and new media would become one. The histories of both AOL and Time Warner are extensive and have not always been successful. Time Warner itself was created by two mega-mergers. The first merger was in 1989 between Time Inc., publisher of many magazines such as Time Magazine, and Warner Communications. Both companies have histories stretching as far back as 75 years or so. In 1996, this company merged with Turner Broadcasting, which brought CNN with its founder Ted Turner. These two mergers created a company ready to lead in any form of media. The company launched the HBO television network. Time Warner, headquartered in New York, had $27.3 billion in revenues in 1999 and a market value of $112.6 billion. On the other side of the merger there is new media giant AOL, today the biggest, richest, and most successful internet company in the world. It was founded in 1985 as Quantum Computer Services and by 1994, after changing its name, had a million subscribers. In its early years, it almost fell because of the problems associated with introducing unlimited access for a fixed monthly fee. As its number of users increased, so did its capacity problems, which made many customers angry because they could not get a connection. The problem was solved when AOL made a deal with MCI WorldCom, which led merge with its rival CompuServe.
We analyzed the market for two weeks to determine when the equity market would turn from a bearish to bullish market. Without a change in the market and a declining bond price, we decided to invest in equities according to our investment strategy, which brought us into the second phase of our portfolio. Therefore, at the beginning of February we bought shares in Sirius, Microsoft, Neon, Washington Mutual, and Nike. As assumed, the equity market continued to plummet decreasing the value of all our stocks except for our Gold Corporation stock.
Once there was a time when “shares in business corporations were rarely bought and sold because few companies were considered promising financial profits” (Blume 21). That is hard to believe considering almost everybody has invested in some stock today. The stock market went through some distinct changes since its inception, and has evolved into a shaping force in the world today. There is one idea that sparked the fire which produced the stock market: capitalism. Everything the stock market is, and was, rooted in the basic idea of capitalism. Without that idea, stocks and bonds would never have come to be.
The key changes taking place in the online industry in 1995 are the introduction of the Microsoft network and the coming of use of the Internet World Wide Web which offered alternative channels to content providers that provided more control over their offerings and potentially higher revenues. Microsoft Network took only a 30% commission fee (versus 80% taken by AOL from its content providers’ revenues) from its content providers and offered providers the option of choosing any format and font to display their content (versus the standard screen displays offered by AOL and its rivals). Also, the per-hour pricing policy offered by Microsoft was superior to AOL’s. With the development underway of a way to provide on-line currency collection, the World Wide Web offered huge incentives for providers to start publishing material on the internet by their own means without having to go through a middle-man such as an online provider. Both of these offerings do not bode well for AOL’s future prospects due to the huge incentives for customers and content providers to switch to these alternative distribution channels.
The Information revolution is changing our daily lives. With the rapid development of computers and the internet, online commerce has become quite common and plays an important role in the modern world. Online business has been booming in recent years. US online retail sales rose an average of 11% in the first three months of 2009 (“US Online Sales Up,” 2009). The growth of online sales may be due to the growing number of consumers who shop online.
Li, F 2007, What is E-business ?: how the Internet transforms organizations, Blackwell Publishing, Oxford.
The report also talks about the differences between, advantages and disadvantages of e-business and e-commerce. Recommendations and advice have been given in the end for businesses intending to adopt an e-business dimension.