Saturday, June 14, 2008 . 2:17:00 PM
E-commerce success and its causesSpeculative bubbles are situations where overly exuberant optimism on the part of investors drives a market far beyond its sustainable performance. The dot.com bubble is also called the Internet or technology bubble. It refers to investors unbridled infatuation with the commercial possibilities of new Internet technologies and the resulting meteoric rise (and astounding fall) of many e-businesses in the so called “new economy” of the late 1990s and early 2000.
While some e-businesses successfully merged Internet technologies to their e-business models, some did not. Additionally, some early e-businesses followed poorly conceptualized e-business models that failed to generate sufficient revenue. A variety of other mistakes and miscalculations also contributed to the downfall of some early e-businesses.
Some e-businesses have succeeded by focusing on the main strength of Internet technologies which is moving information quickly from one place to another. Another strength of Internet technology has to offer that is utilized by successful e-businesses is the flexibility. The flexibility here is referred to being able to get information from anywhere and anytime as long as internet connection is present. Aside those, the Internet allows one to reach customers at a global extent, not just the local market. An example of a successful of E-Commerce business is http://www.ebay.com/.
eBay uses Internet technologies to bring buyers and sellers together in an online auction market space. The eBay online auction Web site was founded in San Jose, California, on September 3, 1995, by French-born Iranian computer programmer Pierre Omidyar. eBay Generates revenues from auction listings and selling fees and was profitable almost from the start of its business presence. eBay has continued to report astounding growth in both sales and profits up till today as it utilizes information technology to its maximum known potential. 