Building a new Internet business model classification framework

Arif Harbott
Arif Harbott

After researching the current literature I found no universally accepted method of classifying Internet business models. It was also noted that classification frameworks were out of date and did not accommodate newer business models.

Therefore I developed a new classification with the following criteria:

  1. It needed to accommodate new businesses such as Facebook and cloud services. Many of the classifications were written before these innovations were developed.
  2. It should flexible enough to accommodate emerging business models in the fast moving Internet sector.

In the end I decided to combine and extend Laudon & Traver (2008) with Wirtz et al. (2010) because these were the most up-to-date classifications found.

New Internet business model classifications

The first table shows the new classification that I created with corresponding category traits and common revenue models.

Improved business model classification with characteristics
Improved business model classification with characteristics

Classification rationale

The second figure shows how the categories were combined or renamed. Two additional categories, infrastructure and software, were added as they were not listed in the classifications.

Business model classification framework rationale
Business model classification framework rationale
Building a new Internet business model classification framework
Scroll to top