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The Life-cycle of the Internet Companies Quoted on the Milan Stock Exchange

Author

Listed:
  • Roberto Cafferata

    (Università degli Studi di Roma "Tor Vergata")

  • Corrado Cerruti

    (Università degli Studi di Roma "Tor Vergata")

  • Corrado Gatti

    (Università degli Studi di Roma "La Sapienza")

Abstract

This paper describes the evolution of the Italian Internet companies quoted on the Milan Stock Exchange. Despite a relevant international literature on the Internet bubble, the transition of Internet companies through different business strategies remains somewhat under explored in the Italian context. Internet companies are shifting from aggressive, international and diversified growth strategies to more defensive and profitable ones, focusing on core competencies and national markets. An Internet company life-cycle model with three phases is proposed: 1. a growth phase (strong growth of revenues with negative and decreasing profitability); 2. a phase of adjustment (weak growth of revenues, negative profitability, and need to refinance/restructure the firm); 3. a consolidation phase (focus on a new perimeter of operations, increased revenues, and growing profitability). Based on such a lifecycle, a profile of successful Internet entrepreneurs is presented.

Suggested Citation

  • Roberto Cafferata & Corrado Cerruti & Corrado Gatti, 2010. "The Life-cycle of the Internet Companies Quoted on the Milan Stock Exchange," DSI Essays Series, DSI - Dipartimento di Studi sull'Impresa, vol. 16.
    • Handle: RePEc:tov:dsiess:v:16:y:2010
    as

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    File URL: http://www.economia.uniroma2.it/public/dsi/file/essays/DSI_CafferataCerrutiGatti.pdf
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    References listed on IDEAS

    as
    1. Peter J. Brews & Christopher L. Tucci, 2004. "Exploring the structural effects of internetworking," Strategic Management Journal, Wiley Blackwell, vol. 25(5), pages 429-451, May.
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    More about this item

    Keywords

    Internet strategies; Italian Internet companies; life-cycle; start-up; entrepreneurship;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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