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

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.