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ECONOMIC - Natural Resources - Labor - Capital - Internet Infrastructure (Layer 1)

Environmental Factors. ECONOMIC - Natural Resources - Labor - Capital - Internet Infrastructure (Layer 1) - Internet Applications (Layer 2). POLITICAL - Stability - Ideology - Institutions. CULTURAL - Social structure and dynamics - Religion - Gender roles - Language.

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ECONOMIC - Natural Resources - Labor - Capital - Internet Infrastructure (Layer 1)

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  1. Environmental Factors ECONOMIC - Natural Resources - Labor - Capital - Internet Infrastructure (Layer 1) - Internet Applications (Layer 2) POLITICAL - Stability - Ideology - Institutions CULTURAL - Social structure and dynamics - Religion - Gender roles - Language DEMOGRAPHIC - Population growth - Age Structure - Urbanization - Migration - Health status - Literacy index - Unemployment index

  2. Layers of the Internet Economy (as defined by Center of Research on EC, University of Texas at Austin) • Layer 4: The Internet Commerce Layer (Firms involved in selling products and services to consumers or businesses over the Internet) • - E-tailers (e.g. Amazon.com, eToys.com). - Manufactures selling online (e.g. Cisco, Dell, IBM) • - Fee/Subscription-based companies (e.g. thestreet.com, WSJ.com) - Airlines selling online tickets • - Online entertainment and professional services. • Layer 3: The Internet Intermediary Layer (Firms facilitating the meeting/interaction of buyers and sellers over the Internet. They act as • catalysts in the process through which investments in the infrastructure and applications layers are transformed into business transactions) • - Market makers in vertical industry (e.g., VerticalNet, PC order) - Online travel agents (e.g. TravelWeb.com, 1Travel.com) • - Online brokerages (e.g. E*Trade, Schwab.com, DLJDirect) - Content aggregators (e.g. Cnet, Zdnet, Broadcast.com) • - Portals/Content providers (e.g. Yahoo, Excite, Geocities) - Internet ad brokers (e.g. Dobuleckick, 24/7 Media) • - Online advertising (e.g. Yahoo, ESPNSportszone) • Layer 2: The Internet Application Layer (Products and services in this layer build upon the above IP network infrastructure and make it • technologically feasible to perform business activities online) • - Internet consultants (e.g., USWeb/CKS, Scient, etc.) - Multimedia applications (e.g. RealNetworks, Macromedia) • - Internet commerce applications (e.g., Netscape, Microsoft, Sun, IBM) - Search engine software (e.g. Inktomi, Verity • - Web development software (e.g., Adobe, NetObjects, Allaire, Vignette) - Online training (e.g. Sylvan Prometric, Assymetrix) • - Web-enabled databases (e.g. Oracle, IBM DB2, Microsoft SQL Server, etc.) • Layer 1: The Internet Infrastructure Layer (Companies with products and services that help create an IP based network infrastructure) • - Internet backbone providers (e.g. Qwest, MCI Worldcom) - Internet service providers (e.g., Mindspring, AOL, Earthlink) • - PC and Server manufactures (e.g. Dell, Compaq, HP) - Fiber optic makers (e.g., Corning) • - Line acceleration hardware manufactures (e.g. Ciena, Tellabs, Pairgain) • - Networking hardware and software companies (e.g., CISCO, Lucent, 3Com)

  3. National-Level Dimensions National Strategy & Goals National policies Policy instruments Industry Political Factors Economic Factors Industry Environment Demographic Factors Cultural Factors National Environment

  4. Industry-Level Dimensions Financial Services Industry Regulatory Power Government Resource Control State owned firms Local cooperatives Multinational firms Competitive Structure & Dynamics Informal sectors Business Groups Political Factors Economic Factors Internet Commerce (Layer 4) Internet Intermediary (Layer 3) Demographic Factors Cultural Factors National Environment

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