Wednesday, October 15, 2008

DOT-COM or DOT-BOMBS!!!

Dot-Com is a company that does its work using an Internet Interface usually a Website using .com previliges...........

Dot-Com Theory






There are many ways by which a company makes money out of businesses...

Dot-COms used the 3Cs Strategy, which stands for Connection, Commerce and Content.

Commerce is about selling the products.

Content refers to placing contents on Internet.

Connection refers to supplying Internet Connection to have a swift flow of company work.

Dot-Com had a theory of survival as Expanding the customer base as fast as possible to survive any kind of hitting in the market..

Later with the increase in IPO's and public oriented bidding the Dot-Com's had a huge amout of money to invest resulting in Demand increament in the Market and thus leading to bulling prices of the Land Rates in 2005-06.

Now the effect was that customers became rare as all were enrolled and the international market was not that interested(Specially India where we find a 500 Rs book at about 50 Rs).

This lead to the shortening of the bubble or domain of Dot-Com's leading to downfall.

Also as the economy grew growth of Dot-Com came to a saturation leading to downfall of many such businesses. With its downfall losses were incurred and people were forced to sell their flats.

Demand increased in the market leading to decrement in prices of land rates and thus bringin recession.....

The most witty survived the collapse with selling their assets(not in creame use) at the time of Boom and others were hard hit....

Dot-Com-Fin Markets

In financial markets a stock market bubble is a self-perpetuating rise or boom in the share prices of stocks of a particular industry. They increase the prices of the stocks abruptly, but are harmful as like Hedge Funds they too can lead to dramatic reshaping of the Stocks leading to Bannkruptcy.

People in US invested largely in Dot-Com industry and the eople who exited at right time were the true winners.... Others just succumbed in the vast Crisis and Recession type activities.

After such a drastic impact on the markets Dot-Com's are now also referred to as Dot-Bombs.............

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