Boom to bust cycle for Internet startups were remarkably concise. This article reports on a longitudinal study of eight sectors, which showed that only 43% of independent B2B exchanges have survived for two years after the spring of 2000. Most of these startups failed because they misdiagnosed advantages over existing ways of doing business. In fact, the Internet is mostly about reforming the applications that facilitate interaction and compress costs, but not to change the basic structure and functioning of existing markets. Employees prevail when the reform process violation of the existing market, not completely revises industry boundaries and norms. Drawing on the lessons of the past shakeouts industry, this article assumes that the future winners in the digital market will be in three camps: adaptive survivors find their re-protected niche market strategy reformed, self-serving employees who acquire assets pure play companies at steep discounts and pure-play startups that capitalize on their early mover advantages in markets breakthrough "Hide
. by George Day, Adam J. Fein, Gregg Ruppersberger Source: California Management Review 22 pages. Publication Date: January 1, 2003. Prod. #: CMR252-PDF-ENG
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