What lessons were learned from the dot-com bubble

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As a consumer, you’ve experienced first-hand e-commerce Web sites. Most of the site characteristics and/or requirements you’re likely to know. However, the number of integrated systems, networks, and maintenance tools needed to support e-business operations, including order fulfillment (getting the correct items to the customer in a reasonable amount of time), are less widely known

The new economy was the economy of the dot-com era (or dot-com bubble), which extended from roughly 1995 to 2000. In 1995, the number of Internet users sharply increased. Unrestrained by business models that required making a profit and having huge sums of money from venture capitalists (private investors), many dot-coms engaged in daring and sometimes fraudulent business practices.

As interest in mobile commerce grows, there is a greater demand for innovative payment systems that make transactions from smartphones and other mobile devices convenient, safe and secure. A number of businesses have attempted to meet this demand with a variety of approaches

According to the dot-com business model, the objective was for companies to build up their customer base (market share) even if it meant selling at a loss in the short-term (which many did) because they’d become profitable in the long-run. Investors bought into these magical business models and stock prices of dot-coms skyrocketed, attracting more investors. In reality, the dot-com bubble was really a stock market bubble. That is, stock prices were significantly overpriced and continued to rise inflating the size of the bubble until March 2000.

QUESTION:

What lessons were learned from the dot-com bubble?

Reference no: EM131414683

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