The marketing strategy consists of 3 parts. Marketing strategies. Market orientation strategies

In economics and finance, there is such a term as a "bubble".

Literally this "pumping" by the liquidity of some kind of asset or a whole industry, as a result of which the shares of companies show a significant increase, not provided by the real state of affairs.

In the history of mankind there were many such bubbles. It is enough to remember the tulip boom in the 17th century. At that time, the flowers of this variety were considered a sign of luxury.

Therefore, the Dutch willingly gave money for the bulbs. So the so-called "tulip fever" began. It is not difficult to guess than everything ended.

IN modern history There were several such booms. Among them, the so-called "bubble of dotcomms" occupies a special place, which grew up to 2000, after which burst. This was accompanied by a sharp drop in the NASDAQ index that had reached its peak values \u200b\u200bfirst, and then collapsed in just one day one and a half times.

This is a none denotation of Internet companies..

In Russian, the term came from English. "DOT" is translated as a "point", and "COM" is a domain zone that was originally created for commercial organizations (from "commercial").

Accordingly, dotcomms changed the organization of the company that were presented on the Internet.

With advent global Web It became clear that it could be used not only to communicate and gain knowledge, but also for commerce. Naturally, numerous investors could not pay attention to this.

At the same time, the capitalization of companies associated with the Internet grew. For instance, search system Yahoo, popular at the time, by the end of 1999 it was already worth 114 billion US dollars.

Taking into account these figures, other investors paid for the World Wide Web.

The number of Internet companies grew and even those who had a completely different business model, tried to reorient and be represented on the network.

All this led to an increase in shares of companies. And investors, in turn, seeing such a situation, invested more and more.

Moreover, many seriously believed that the IT market would only grow.

However, not only the general excitement led to an increase in the capitalization of this market. The fact is that in the economies of the United States and Western Europe At that time, instability was observed.

It provoked an increase in accounting rates. IT companies in the field of companies were considered by investors, first of all, as safe investments in the market, which continues to grow in spite of everything.

Some giants were under the threat of separation. The amount of product sales fell.

It is the opinion that this crisis destroyed the IT market and most companies on it. However, it is incorrect. In fact, it survived about half from all firms, which is a fairly good indicator.

Causes of the appearance of the bubble of the Dotcomms

One of the main reasons that influence the appearance of the bubble was the fact that the technologies were too overvalued.

The fact is that the Internet is not a business itself, but only the instrument of his conduct. But many apologists did not think so.

They were eagerly unclean on the hand of businessmen who everyone understood, but wanted to make a profit from the new investment in the industry.

However, it is the use of the Internet that improves the possibilities of doing some types of business, in particular, international retail chains, stock exchanges or online auctions. For example, today it is difficult to imagine the work of Amazon without a global cobweb.

It is impossible to say that it would be impossible. The fact is that similar companies There were even before the appearance of the Internet. The order could be done, for example, by catalogs. However, it was a long process. The Internet significantly accelerated the procedure for placing the order.

Moreover, he literally access everyone to access the site where you can buy everything from books, to software, work tools and many other things.

It is enough to go to the website of the same Amazon, about which they know on all continents.

Thanks to the Internet, investors were able to perform operations without leaving home. Previously, this required either personal presence or call on the phone. Today, the investor can use the platform connected to any stock exchange and perform transactions there.

However, despite all this, in early 2000, many experts have already become clear that this market is very overvalued. And one of the deep reasons just walked in the fact that people tried to sell a tool for a business, issuing him for ready business model.

Among other reasons that the market could enjoy, note:

What was next

The collapse of the Dotcomms market led to the bankruptcy of many companies in this industry. Some firms were condensed in fake reports, as well as conducting illegal banking operations in order to increase profits.

This refers to the Worldcom, one of the largest players in the industry. As soon as this information has become known to the public, the company fell sharply and led to bankruptcy.

Other companies simply ended money and they were forced to close or sold. Other firms were accused of incorrectly used the funds of the depositors (most likely, here and refer to the embezzlement of money for advertising instead of innovation).

The accusations touched not only companies in this area, but also investor funds like Citigroup or Merrill Lynch.

They were incriminated to the introduction of investors misleading.

The fall of the market of the Dotcomms has affected not only on IT companies, but also on adjacent sphereswho offered their services to such firms.

Another problem was the employment of many specialists who were literally on the street with the closure of companies.

During the boom of dotcomms, the demand for programmers is confidently growth. But after the bubble burst, many remained without work. At that time, programmers were actively reappeared into other professions.

But by 2004, the second boom of the dotcomms began. Companies who survived after the events of 2000 recovered and again joined the fight for the Internet. Moreover, many companies realized that the US market is already small and here "closely". They began to work on other markets too. Thus, with the collapse of the dotcomms, IT the sphere can be said to be cleared of unclean on the hand of businessmen and network business In 2004, he began his second life, which continues to this day.

George Verbitsky recently published a curious plate into a reminder of the collapse of the 2000 Dotcomb Bubble

Yes, such things need to know, remember them, and understand that all this easily can repeat.

But findings from this plate can be made very different. Depending on the depth of the nuances that you can distinguish.

In my opinion, make a conclusion from this sign only about the risks of BUY & HOLD - it is too primitive.

The benefits of diversification - already better. The drawders of the holders of wide indices were much lower.

The benefits of a balanced portfolio - even better. Holders of portfolios balanced by assets can be separated by light fright or even earn (for example, if the portfolio contains a share in precious metals).

The desirability of accounting for at least simple indicators of fundamental analysis is even better. Such changes could be expected. And many of them expected.

But in any case, as a reminder, the plate is useful. Who does not know stories, and does not extract lessons from her, he risks repeat it again.

Nearest webinars and events:
03 - December 7 (Mon - Fri) - Sergey Spirin, "Investment portfolio - part 1. Portfolio structure or strategy"
December 15 (Sun) - The conference

The crisis of the Dotcomms is an economic bubble and the period of exchange speculation and the rapid development of the Internet in 1997-2001, accompanied by a rapid increase in the use of the last business and consumers. Then a lot appeared network companies, much part of which suffered collapse. Bankruptcy of such starters like Go.com, Webvan, Pets.com, E-Toys.com and Kozmo.com, cost investors in $ 2.4 billion. Other companies like Cisco and Qualcomm lost a large proportion of market capitalization, but recovered and exceeded peak indicators of that period.

Bubble Dotcomms: How was it?

The second half of the 1990 was marked by the explosive development of the new type of economy, in which the stock markets under the influence of venture capital and the IPO funded IPOs of the Internet sector and adjacent regions experienced high growth rates. Characterized by many of them the name "Dotcom" refers to commercial websites. It was born as a term to determine the companies with domain names on the Internet ending with the company. Large volumes of exchange operations were fueled by the fact that it was a new branch with high potential and the complexity of the assessment of market participants. Their reason was the high demand for the shares of this sector from investors looking for new investment facilities, which also suffered the revaluation of many companies in this industry. At his peak, even those enterprises that were not profitable became participants in the stock exchange and were extremely highly quoted, given the fact that their work in most cases were extremely negative.

Back in 1996, Alan Greenspan, at that time, the chairman of the Fed, warned against the "irrational abundance", when a reasonable capital investment was replaced by impulsive investments. 2000 technological stock Index NASDAQ has reached a maximum of more than 5,000 items, the day after the fire sale of technical shares noted the end of the growth of the "new economy".

Ethrational investments

The invention of the Internet led to one of the largest economic shocks in history. The global network of computers goes back to early research work 1960, but only after creating a worldwide network in the 1990s, its large-scale distribution and commercialization began.

As soon as investors and speculators realized that the Internet had created a completely new and unused international market, IPO Internet companies began to quickly follow each other.

One of the features of the crisis of the Dotcomms is that sometimes the assessment of these enterprises was based only on the concept set out on one piece of paper. The excitement about the commercial opportunities of the Internet was so big that every idea that seemed viable could easily get millions of financing dollars.

The basic principles of the theory of investment in relation to the understanding when a business will make a profit and whether it will happen at all, in many cases they have been ignored, as investors were afraid to miss the next major hit. They were ready to invest large sums In the company that did not have a clear business plan. It was rationalized by T.N. Theory of Dotcomms: In order for the Internet enterprise to survive and evolve, rapid expansion was required. client baseIn most cases meant huge initial costs. The justice of this approval is proved by Google and Amazon, two extremely successful companies that needed several years to show some profit.

Eranny expenses

Many of the new companies received money spent thoughtlessly. Options made employees and managers per day by IPO millionaires, and the enterprises themselves often spent funds for luxury business objects, since the confidence in the "new economy" was extremely high. In 1999, 457 primary accommodations were held in the United States, most of which organized Internet and technological companies. Of these, 117 managed to double their value during the first day of trading.

Communication companies, such as operators mobile network And Internet providers began to invest significant funds in the network infrastructure, as they wanted to be able to grow along with the needs of the new economy. To be able to invest in new network technologies and acquire licenses for a wireless network, huge loans were required, which also contributed to the approach of the crisis of the Dotcomms.

Like.com-companies have become dot bombs

2000 The Index of technological shares traded on Wall Street, NASDAQ Composite reached a maximum of 5046.86 points, which halved exceeded its value a year earlier. The next day, the campaigns began to fall, and the bubble of the dotcomb burst. One of the direct reasons for this was the completion of the antimonopoly business against Microsoft, which in April 2000 was declared a monopoly. This market was expected, and 10 days after March 10, the NASDAQ index lost 10%. The next day, after the publication of the official results of the investigation, the technological index experienced a large intraday fall, but returned back. However, this was not a sign of recovery. Nasdaq began a free fall when investors realized that many unprofitable new companies were really like that. During the year, after the crisis of the Dotcomms broke out, most venture enterprises who supported Internet startups lost all their money and went bankrupt when new financing was dried. Some investors began to call the once star company "Dot-Bombs", as in a very short time they managed to destroy billions of dollars.

On October 9, 2002, NASDAQ reached a minimum of 1114.11 points. It was a colossal loss of 78% of the index compared to his peak for 2.5 years before. In addition to many technological startups, many communication companies also faced problems because they had to cover billionth loans that they took to invest in a network infrastructure whose payback was now suddenly postponed for a much longer time than expected.

History Napster.

Concerning legal issues, Microsoft was not the only dotcom who appeared before the court. Another famous technological company that era was founded in 1999 and was called Napster. She was developing an application that ensured the sharing of digital music in the P2P network. Napster founded 20-year-old Sean Parker and two of his friends, and the company quickly gained popularity. But due to copyright violations, she almost immediately fell under the fire of the music industry and ultimately ceased to exist.

Hacker Multimillioner

Kim Schmitz may best illustrate actions individual entrepreneurs Regarding the crisis of the Dotcomms. This German hacker has become a multimillioner, launching various Internet companies in 1990, and eventually changed his surname on the dotcom, hinting for what made it rich. In early 2000, right before the collapse of the new economy, he sold TÜV Rheinland 80% of his shares in the DataProtect founded by it, which provided data protection services. Less than a year later, the company went bankrupt. In 1990, he was a central figure of a number of sentences for insider trade and waste associated with its technological enterprises.

In 1999, he had a tuning "Mercedes-Benz", which among many other electronic gadgets had a unique high-speed wireless connection to the Internet at that time. On this car he participated in the European Rally Gumball. When many people in expensive cars compete on public roads. When Kimbla (his nicknamed at the time) pierced the tire, then the new wheel was delivered to him on a reactive aircraft from Germany.

He survived the consequences of the collapse of the Dotcomms and continued to launch new startups. In 2012, he was again arrested on charges that he was illegally distributed by copyrighted by copyright. Currently, he lives in New Zealand in his house worth $ 30 million and expects extradition to the United States.

Did investors have learned a lesson?

Some companies that were launched during the inflating bubble of the dotcomms survived and became such technological giants as Google and Amazon. However, most failed fiasco. Some entrepreneurs who participated in risky enterprises actively worked in this industry and ultimately created new companies, such as the aforementioned Kim Schmitz and Sean Parker from Napster, who became Facebook president.

After the crisis of the Dotcomms, investors began to fear the investment in risky enterprises and returned to the assessment of realistic plans. However B. last years A number of IPO thundered high level. When LinkedIn, social network For professionals, the market was published on May 19, 2011, its shares instantly increased more than 2 times, which reminds what happened in 1999. The company itself warned investors to not be too optimistic. Today, the IPO is carried out by companies that are engaged in business for several years and have good prospects for profits, if no longer profitable. Another IPO, held in 2012, was expected for many years. Primary edition facebook shares It became the largest among technological companies and put the record for the volume of trading and the amount of attracted investments equal to 16 billion US dollars.

Finally

The bubble of the 1990s and early 2000s was characterized by new technologywhich created new market With many potential products and services, and very opportunistic investors and entrepreneurs, blinded by early success. After the collapse of the company and the markets became much more careful when it comes to investing in new technologies. However, the current popularity mobile devices, such as smartphones and tablets, their almost limitless capabilities, as well as holding several successful IPOs, opens the doors to a whole generation of companies that will want to benefit from this new market. The question is whether investors and entrepreneurs will be more reasonable in order not to give rise to the second bubble of the dotcomms?