Dot com bust

Since the so-called “Dot.Com Bust” of 2000-2001, there has been considerable debate and commentary on failed business models. Discuss the main causes of “business model” failure with reference to Stephen Chen’s (2003) analysis of types of business models and key problem areas associated with them (Chen, Stephen (2003), “The Real Value of e-Business Models, Business Horizons, Nov-Dec., pp. 27-33). Do you believe that the problems highlighted by Chen mean that the business models were fundamentally flawed, or are those models still usable in 2006?

Corporate Structure
Pure internet model – copycats; brand awareness
Click and mortar – channel conflict
Revenue model
Free – generating revenues from other sources
Pay – price/product trade off
Supply model
Direct sales: product/service quality, cost of operations
E-tail: logistics, speediness, reliability
Portal: brand awareness…eye popper
Marketplace: generate enough amount of buyers and sellers
Market type
b2b – integrating with ERP systems
b2c – increasing consumer awareness, interest access.