At the year of Millennium, dotcom which is one of the examples of e commerce face a huge doom in loss. This internet company was in such a rush to go public that forgot one small detail which is a sound business plan. Profitability couldn’t be reached due to a lot of investment capital was poorly spent on planned companies. Poor Human Resources management did occur as well. Due to lots of cash in their hands, this company hired too many staffs or even worse, hired unqualified staffs. The hiring of friends and relatives often returned no value on investments.
In addition, poor financial management did occur in Dotcom Company. It is because they provide free foods for customers and even the employees. They did build fancy offices which cost massive amount which doesn’t make any gain to the company. There are even hundreds of errors could be found in just one web page of dotcom. Many customers did complain about the incorrect price and even the length and weight of the online products. Therefore customer dissatisfaction occurs and this company has to pay back to customers in return of cash. Lack of advertising gives a poor result for this company. Nobody even knows this company really exists.
Link: http://www.disinfo.com/archive/pages/dossier/id333/pg1/index.html
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