Unfortunately for many dotcoms that is precisely what they did face. The dotcoms were the innovators that proved the market opportunity, which incumbents then exploited. Incumbents could do this because of what happened to barriers to entry. But barriers to entry into the e-retailing business are even lower. The swarm of entrants to these nascent markets awash with money from venture capitalists demanding high growth and quick returns meant that the dotcoms undercut one another, often giving away content and services in the hope of rapid growth.
Timing is vital in entrepreneurship.
Arriving before a market is ready to grow is as bad as being late for one that is overcrowded. The winners in e-commerce are those with the staying power to be there in three to five years, when consumers' habits have evolved and markets have been established. Please read Terms of Use .