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The Dot-Com Fiasco
It was just over three years ago when the dot-com bubble burst. Since then, 4,854 Internet companies have been either acquired or have shutdown (Webmergers). TheStreet.com's Internet Index , which was widely thought of as the best proxy for the Internet industry has dropped a staggering 93% since March 2000. While there have been hoards of companies going belly up, there are still a select few who have built a solid business model and still flourish in the e-world.
Successful Internet companies took a more conservative approach to the game of e-commerce. Instead of aiming for market share, they focused their energy on attaining profit. Unlike most of the companies that went public at the time, these businesses wanted to have dividends, profits, earnings before and after taxes, and positive revenue growth projections. Without being concerned about profitability companies were never clear on their gross margins. Instead they would use costly tactics, such as waiving delivery fees (pets.com) to attain a greater market share and in turn, hurting profitability. On the other hand, the surviving dot-comâ
Approximate Word count = 749
Approximate Pages = 3 (250 words per page double spaced)
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