Business Writing: Week 12 s1180035 Shota Furuya
Contents What is the DotCom Bubble? Brief History of the Bubble Burst of the Bubble Aftermath of the Burst Affects to Other Countries Affects in Japan Conclusion References
What is the DotCom Bubble? The DotCom bubble is a economic bubble which is occurred in 90’s to early 00’s. The DotCom means the Internet, but the DotCom bubble started without the WWW (World Wide Web) and it didn’t recognize the Internet is important.
Brief History of the Bubble In 1996: NASDAQ Composite Index closed above the 1,000. In 1999: The index is exceeded 2,000. On March 10, 2000: The index peaked at 5,048.
Burst of the Bubble On March 20, 2000, 10 days after the peak of the bubble, NASDAQ Composite Index has lost more than 10% of its peak. In 2001, the index had been deflated. In 2002, the index was deflated to about 1,000.
Aftermath of the Burst Because of the burst of the DotCom Bubble, so many IT venture companies are forced to bankrupt themselves. However, some venture companies survive the burst. These became large IT companies today. For example: Google, Amazon, eBay.
Affects to the Other Countries Some countries have grown up after the burst of the bubble. Especially, Ireland has remarkably grown up because many IT companies has funded to Ireland. India has also grown up because many software engineers live in India.
Affects in Japan In the similar way of U.S.A., many large IT companies are founded after the burst of the bubble. For example: Yahoo Japan, Softbank, Rakuten, livedoor. However, companies to which are funded are mainly hardware company, not software company.
Conclusion The DotCom Bubble is occurred in 1995 to 2002. After the burst of the DotCom bubble, many IT venture companies are bankrupted. The affect of the burst is expanded to many countries.
References Dot-com bubble (Wikipedia) http://en.wikipedia.org/wiki/Dot- com_bubble History of the Internet - the Dotcom bubble (NetHistory) http://www.nethistory.info/History%20of%20 the%20Internet/dotcom.html Definition of Dot-Com Bubble (DaveManual.com) http://www.davemanuel.com/investor- dictionary/dot-com-bubble/