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
Business
Groups
Informal
sectors
Political
Factors
Economic
Factors
Internet
Commerce
(Layer 4)
Internet
Intermediary
(Layer 3)
Demographic
Factors
Cultural
Factors
National Environment