Internet and Economic Revolution

The Internet revolution, similar to industrial revolutions promises an economic transformation. The main objective of this paper is to analyze these expectations and to put forward more reliable and satisfactory explanations of the dotcom phenomena implications. That has been done by answering the following questions: What are the factors that influence the growth of dotcom companies? What are the factors that influence the decline of dotcom companies? Which of the dotcoms business model is likely to be the most reliable to use in future? In order to understand dotcom problems encountered by entrepreneurs, managers and investors presents a historical background of the dotcom boom and related to its other points in history that have a similar nature. The new industrial revolution initiated by the information technological development in the internet system poses both opportunities and threats to some industries, especially the agency market. Traditional agency provides a search function for the clients, which soon becomes obsolete with the instant search in the cyberspace. In a market where almost everything is starting to emerge in proper form, such as the real estate market in the reforming China, internet application provides competitive advantages for most players. Adaptation to this new development seems natural as there is no inertia and everybody is on more or less the same range of the learning curve.