Series  |  Briefs  |  Quick tips  |  Basics  |  Other
Retail  |  Marketing  |  Products & Pricing  |  Other

The Internet Bubble Has Not Yet Burst

Posted On - 14/11/2014 10:24:26


Tomorrow's Internet Will Not be The Same As Today's
March 10, 2000. The start of the dot.com bust.

Just 2½ years later, the NASDAQ had lost 78% - $5 Trillion – of its value.

Whether triggered by Microsoft being declared a monopoly, automated ‘sell orders' on major stocks, the after-math of Y2K, or the dismal performance of on-line retailers over Christmas '99 is moot.

The result stands: a complete reboot of the tech sector and the birth of the internet we know today.

And while the internet has been hugely successful, it's built on flawed foundations. So much so it's genuinely hard to see how it can endure operating the way it does.

Tomorrow's internet will not be the same as it is today.

Join us in the third and final part of "Is The Internet Broken?" from our 2014 Open Day. Find out why everything you thought you knew about the internet is wrong.

eCommerce: not a game of chance

Making money online is harder work for smaller businessesIn the ‘90's the Internet was billed the cool and easy way to have your own business.

And not just any old business: for practically no start-up cost, you could sell to anyone on the planet.

So a $1M+ business run from a laptop on the beach was a dream many followed then and remains something people still pursue today.

So, the promise of vast sums of easy money drives legions of start-ups. And huge numbers of commercially naive 'wannabe's' take a punt. The result is fierce price competition.

But more, large well-known brands - the 'few' - easily draw sales using their reputations. For the remaining 'many' it's a very different story. Drawing traffic is hard work and even then its tough persuading visitors to buy.

Trading online does not guarantee success. Witness average turnovers for micro-business: at a mere £1,000/annum or just 0.6% turnover it's hard for them to justify the investment of time and effort.

Start small, think big, scale fast

The early days of the internet saw traditional business thinking eschewed: kick-starting the New Economy necessitated operating at a loss in order to capture market share and build brand.

The thinking was the first to do this would steal unassailable lead – so justifying their initial risk.

Amongst those cited for practicing this is Amazon. Having started back in '95, Amazon traded almost 6 years before reporting a profit. And while growth remains impressive at 23% in 2014, regular profits are anything but. To date the cumulative total amounts to a mere 0.6% of turnover. Given the scale of the business, this is as good as zero.

Twenty years on how can Amazon still expect shareholders to believe it's capturing market share and building brand? While the going may be tough for micro-business it's no picnic for Big.

Please tell us why you dislike this blog article?
Display Name:
Email Address:
Post comment?
I accept the terms and conditions set out here
Comments:
Post Cancel
Also in this series
  1. The Internet Bubble Has Not Yet Burst
  2. eCommerce Growth is Crashing
  3. Internet Growth Is Not Materialising
Archives
February 2018 (1)
January 2018 (2)
December 2017 (2)
November 2017 (4)
Earlier (301)
Contact Us
Like what you've read? Then why not sign up to the Shop Talk newsletter?

Have ideas or want to discuss them further? Don't understand what's been written and need some explanation? If you want to talk, for whatever reason, we're happy to as well.

The best ways to find us are by email or by mobile:

01977 282 300 & choose option 5

Alternatively please call 01977 282 359 to speak to a member of our ShopTalk team


You have already signed up to the Shop Talk mailing list

Shop Talk: The only blog for small independent IT retailers and businesses

It's FREE. Join the Shop Talk community and get advice on how to build a better business.

Contact Name: *
Email Address: (privacy policy) *
What's your greatest Business Challenge?
New to Target?
Interested in our TRADE ONLY deals?
Yes No *
 
Please type the characters from the image shown



 

Thank-You!

You will receive a confirmation email, please click on the link to confirm your email address.

Thank-You!

You have now been added to the Shop Talk blog news mailing list.

Cookie Notification: by clicking accept you acknowledge that are allowing us to use a Cookie on your computer. To read our Cookie policy please view our privacy statment here.