The Burst of the Bubble Called Internet Research Proposal

The Burst of the Bubble Called Internet - Research Proposal Example After several years since its release to the hands of the private and public sectors, it has created a worldwide sensation most especially to the business sectors. This event is called the internet bubble. The internet bubble or sometimes called dot-com bubble was a historical event which became so much blatant during the kick off of the new millennium. It was marked by the creation of groups of internet companies which failed to last for a lengthier time. Because of the wide popularity of the internet, the tremendous increase of stocks, individual speculation in stocks, and easy access on venture capitals were the most significant factors which contributed to the bursting of the internet bubble. Because of these factors, many internet companies disregarded the codes of ethics in business, standard business models and the like; rather, they gave focus on catching more internet users into their sites and increasing their market shares. This system, however, failed and brought about th e hiatus on development during the commencement of the new millennium. Online businesses suffered the long drawn out recession in terms of development. Many online ventures and businesses disappeared from the online map and halted from pursuing their business careers. What were the major causes that contributed to the burst of this... The vast number of online companies paved the way to heavy competition between them. They move in and invest in a faster manner with less caution, therefore, taking more risks in doing so. Furthermore, the low rates of interest added up to the increase of start-up capitals which motivated many to engage themselves in this kind of business. The worst part of this is that even though these companies have potentially good ideas and concepts regarding their business, they also failed in doing so because the dot-com concept is still new in the market. The notion of these investors is that they could get more than what they have given so what they did was spend and invest hoping that it would pay-off a hundredfold. But unfortunately, time proved them false because instead, they had a pretty big loss and during that time, they only relied on venture capitals and initial public offerings (Spector, 2000).