A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Why did Enron's bandwidth trading business fail?

Best Answers

At the guy who originated the whole "bandwidth trading" thing, I think I have a handle on that, which can be summed up in one word: HUBRIS I'll get to the "what happened" part in a minute, but for people that don't know, first a primer, and then some backstory. A Word on Commodities. read more

This is why I think bandwidth trading failed: Per a bulletin I wrote (early 2000: ) "The two factors that really challenge a robust market in the bandwidth business line are the vertical integration in the industry and the number of participants that control the supply of network capacity. read more

On that basis, Enron authorized a $2 billion investment in the business plan I'd outlined in very broad strokes, over three years. Most successful pitch meeting ever. The strategy was to create a situation in which a commodity market for bandwidth would be the logical answer, and then create, and dominate, that market. read more

With $62 billion in assets as of Sept. 30, it would be the biggest American company ever to go bankrupt, dwarfing the filing by Texaco in 1987. Late in the day, though, Enron's chief financial officer, Jeff McMahon, said that the company was still talking to banks about a restructuring and considering other options. read more

Encyclopedia Research

Wikipedia:

Image Answers

Further Research

ENRON’S MISSED OPPORTUNITY
www.brie.berkeley.edu

The Rise and Fall of Enron
www.journalofaccountancy.com

Why Enron Failed
editingbysuzy.yolasite.com