Following to a new worldwide trend, we have in recent months seen more and more dotcom failures in Hong Kong. Are we seeing the end of this doom and the beginning of a new boom? Nobody seems to be able to answer this question. At this stage however, we can reflect on what have made these dotcoms fail, and what lessons we have learnt from them before embarking on new dotcom strategies.
I wonder if there are research studies on why dotcoms have failed in Hong Kong? If there are, I would like to play some part as an independent analyst, so as to contribute something to the dotcom era. If there are none, I might initiate a mini research myself.
The following are some hypotheses on why dotcoms have failed in Hong Kong:
-the supply-side stakeholders have done poor planning--lack of user-friendly technologies at reasonable costs, weak marketing strategies, etc.
-the demand-side stakeholders are not ready for e-commerce--in respect of culture, knowledge, language, skills, trust, affordability, etc.
-other environmental factors are not ready--weak economy, speculative climate in the stock market, inadequate laws and regulations and government support, mismatching geographical factors, etc.
-going risky ventures without the help of proper steering mechanisms
-dotcom leaders plan for personal success more than company success
-mismatch between people of different management streams in the same enterprise: e-management and business management
-electronic flows are not linked well with other flows (money, materials, products, paper, etc.) relevant to the same company
-technologists are (too proudly) leading business strategists
-the lack of a common language for internal communications
-wrong prediction on funds required
-excessive emphasis on the number
of visits to the homepage and advertising revenue
Do you agree or disagree with these
hypotheses? Do you have other ones to suggest? These points would need
to be restructured before a questionnaire is sent out.
Dr Charles Lam
October 2000
email: clam@kamching.com