Question

The role of capital market intermediaries in the dot-com crash 2000 pdf

Answer 1

The internet was being thought of as an economy and not a channel in the economy. The events of 2000 signaled the end of the internet bubble and marked the start of a real digital transformation in the economy.

People mainly jumped on the internet bandwagon because of its fashionability. The internet is providing a powerful new business infrastructure, a universal information system for handling the transactions of the economy while bringing about radical new efficiencies to both buyers and sellers of goods and services.

One problem with the dot.com phenomenon was that it was mainly concerned with business-to-consumer retailing. Despite the crash of 2000, the internet still changes everything. Can a business function today without a telephone or fax machine? The Internet too is fundamentally reshaping businesses, the information systems that run them and the industries in which they compete.

In this new economy, gaining market share was considered key because of the benefits of network effects.