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Roy's assiignmentweek12 2


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  • 1. The DotCom Bubble in California
  • 2. What is the Dotcom bubble? The dot-com bubble was a historic speculative bubble covering roughly 1997–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the Internet sector and related fields.
  • 3. What is the Dotcom bubble? While the latter part was a boom and bust cycle, the Internet boom is sometimes meant to refer to the steady commercial growth of the Internet with the advent of the World Wide Web, as exemplified by the first release of the Mosaic web browser in 1993, and continuing through the 1990s.
  • 4. Background of DotCom Bubble The low interest rates in 1998–99 helped increase the start-up capital amounts. A canonical "dot-com" company's business model relied on harnessing network effects by operating at a sustained net loss and to build market share.
  • 5. Influence of a stock price The Nasdaq composite index of NASDAQ with many communication related issues was changing around 1000 in 1996. However, it broke through 2000 in 1999 and 5048 of the top was shown on March 10, 2000.
  • 6. Influence of a stock price Thus, the venture business founder who exhibited stocks gained immense wealth, and accelerated the venture establishment boom centering on Silicon Valley. In America, it is called a dot-com boom or a dot-com bubble.
  • 7. The fall of a stock price Although the American economist praised such a phenomenon as "new economy", after that, ignited by interest rate raise of the Board of Governors of the Federal Reserve System, a stock price collapses quickly, also has a U.S. coordinated-terrorist-attacks incident, and fell to 1000 sets in 2002.
  • 8. The bubble bursts In such collapse of a stock price, many IT related ventures were driven into bankruptcy, and the number of the U.S. IT related jobless people in 2002 amounted to 560,000 people. the floatation support fund centering on Silicon Valley temporary coming out that it was obliged to reduction or abolition and only some (such as Google,, and e-bay) ventures survived.
  • 9. Influence on the world A phase patch and Ireland attained the economic growth which direct investment of IT- related company enjoys this boom in small country Ireland whose wage and salary costs were low, and is called "a Celt's miracle" also in European countries.The blow of the collapse of the 'bubble' economy to the Ireland economy was not decisive.
  • 10. Influence in Japan Yahoo!JAPAN, Softbank and optimism, a cyber-agent, livedoor, etc. prospered as Web companies. On the other hand, in Japan, almost all companies withdrew from OS war, and newly-listed stocks, such as the existing communication and mobile phone related stock, a computer related stock, a semiconductor, a telecommunication cable, or optical communications, mainly became an investment outlet. However, since economy of Japanese economy was dull by the depression from after the collapse of the 'bubble' economy and IT related investment was partial, the influence on Japan was very restrictive.