Creative Edge Nutrition Inc (FITX)

[Tiresias]

Not so. The market runs on spec for startups. That is what drove the dot com bubble.

Short-term Goal SettingThe goals set were very short-term. Colony (2000) argued that many of the dotcoms
lacked depth and business sense compared to well-established businesses.
Their goals were extremely short-termed, three-years on the average.
Bad Strategic Planning
Strategies applied were flawed. Funding from investors was mainly used for
advertising and promotion purposes. Too much emphasis was placed on
increasing stock-valuations (going public) instead of building a sound business
that had strong customer relations (Glasner, 2000). When there were no returns,
investors started to pull back. This left a big hole in the dot-commers’ wallets.
Weak and Liquid StructureThe overall structure of the company was weak. The workforce was inconsistent
in a sense that it constantly changed. New faces will come in when there is
promise of high stock options and IPO offerings, and after the offerings, many left
in search of other pre-IPO companies with higher values (Colony, 2000).
Customers Received No ValueWith all of the above combined, the bottom line was only one thing; customers
received no value. Since all the focus was put on establishing the company’s
worth, value for customers was merely a back-seat discussion (Colony, 2000).
Doing business, no matter how, is still about satisfying customers. And when
satisfaction was not achieved, logically, no sane customer wanted to stay loyal.
When customers fled, no profits were generated. When that happened, another
bottom line came into the picture; the stage was set for a steep fall.