Marketing and the .COM Bust
The .COM bust, the .COM “bubble”, the failure of companies that “dot-bombed”, happened more than a decade ago, but the lessons learned are important for the present tech sector. Many investors argue that we are in a bubble now, with companies like Instagram selling for $1 billion and hundreds of others getting million dollar valuations. Looking back, it’s clear from a marketing perspective current aspects of the products and websites themselves could have been changed to increase chances of success. Many will claim though, that many of the issues with the .COM bust and failures were of the market and overpriced IPOs that drove greed in Silicon Valley and around the world. Barring these situations, marketing data from the bust and the way that the companies failed are helpful in preventing another massive amount of failures. Marketing is the face of an organization. It’s one of the easiest things to change that will impact the perception of a product or organization the most. That’s why marketing should be one of the first things considered when looking at the past and future of web businesses. Why Did It ALL Fail?
When the .com boom happened, thousands of investors flooded the market with money seeking that “golden opportunity” for riches and success. It is well known that the success rate for new businesses is remarkably low. The industry is cut-throat and with a flood of money with the newly growing .COM businesses, there were sure to be failures. This time though, the amount of failures was astronomical. Many of the businesses focused on greed and didn’t breed a strong corporate culture for success. It becomes apparent that bad business was on the mind when looking at companies like Flooz; many investors were seeking far-out ideas that might gain traction. One of the key aspects in many of the failures was mismanagement of resources. With millions of dollars, it’s still wise to have a sustainable...
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