Enron, Dot Com, and Facebook

Have you ever heard of the company Enron? Enron was a U.S. energy–trading and utilities company that housed one of the biggest accounting fraud in history. Enron’s executives employed accounting practices that falsely inflated the company’s revenues, which at the height of the scandal made the firm become the seventh largest corporation in the United States. Once the fraud came to light, the company quickly unraveled and file for Chapter 11 bankruptcy on December 2, 2001. Everyone went broke and a few of the high ranking officers went to jail. Enron did not have a solid foundation, they were playing the shell game and got caught.

In the early 1990’s there were dot com companies. These companies did not sell any product. They were doing most of their business on the Internet. One of the biggest mistake early dot com businesses made was that they were more interested in attracting visitors to their website than winning them over as customers. In the late 1990s as well as today many businesses were interested in investing in the Internet to expand their market. Early e-commerce though the most important factor was to have as many visitors as possible driven to their website and this would eventually lead to profits for their business. This did not happen for the dot com, because they did not do the proper research and get their visitors to buy in as customers to their advertise product. Research needs to be done on the product that the business is actually trying to sell. The business also needed to research the price of their product. They need to be competitive with the cost of their product compared to their competitors. The Dot Com businesses failed to research their product properly to promote their business and this lead to their failure as a company. You could say that they did not have a real strong customer base. They were playing the shell game via the Internet.

The earlier dot com companies sound so much like the present company of Facebook. I see similar patterns with Facebook. Facebook has grown in less than eight years, to over six hundred million followers. What is the product? The product is advertisements and communication, (sounds like the dot com). Only Facebook did their research and is continually growing by leaps and bound. Facebook is a social utility that connects people with friends and others who work, study and live around them. People use Facebook to keep with friends, upload an unlimited number of photos, share links and video. To learn more about Facebook, view this link, www.facebook.com. Facebook is doing what the dot com companies were trying to accomplish in using the Internet to advertise and make money on their ads. Facebook is selling ads and have created a very large customer base, which has turned into profits. This is because of the venture capitalist who are investing in a company that have a strong product base. I hope that Facebook continue to strives and do well and does not end up like the dot com companies of the 1990s."http://amyles-allen-myles.blogspot.com"