Tag Archives: it industry

Revival of the Dot-Com Era and the New Bubble 2.0

dotcom bubble_MediaLabs

The internet era reached a pinnacle in 1997 and continued till 2000, which was fueled by the accelerating Information Technology (IT) industry. To cash in on huge profits, entrepreneurs invested in any sort of dot-com businesses by simply adding an “e” prefix or “.com” to their names. They aimed at a ‘growth over profit’ policy, assuming that once they built their customer base, their profits would swell creating the dot-com bubble. Their goal was to “get big fast” and instead of working towards creating a plausible business plan, they increased the stock prices. The value of the equity markets increased exponentially as investors made huge investments largely on the basis of inflated stock prices.

However, the growth of the tech companies proved to be illusionary and many legal cases were filed against them for practicing unscrupulous business ethics. The stock market slumped when the verdicts went against these companies. Unable to bear the financial losses, many companies declared bankruptcy – Pets.com, Broadband Sports, Boo.com, eToys.com, Read more

The Dot-com Bubble

Dot-com buble_MediaLabs

Beginning of the internet era

It was in 1992, when the Internet era started. However, it started without the existence of the World Wide Web (www). Internet was made available to the world through the “www” network in the following year. The Defense Advanced Research Projects Agency (DARPA) agency of the US Government was instrumental in making it public. Internet penetration among users worldwide rose substantially after privatization of the Internet in 1994.

Growth of the dot-com bubble

The Internet era continued to boom from April 1997 till March 2000. During that time period, Information Technology (IT) was at its prime and became the key accelerating force for the economy. It was in fact one of the topmost sectors which was creating the majority of jobs across all countries, helping in the overall economic growth.

During these years, most of the entrepreneurs were willing to invest in any sort of dotcom business for the sake Read more