IT distributors have been played key roles in Taiwan IT industries. The sales model of 3C merchandise has transformed from the traditional agents model into a new model of multiple channels by distributors. However, with the rise of the internet economy, a new business model of virtual channel is an inevitable trend. What are the connotations of the new business model? What are the differences and similarities compared to the traditional business model? The study defines the operationalized business model through literature review, then to compare the similarities and differences between the two business models. This study further explores the interaction between elements of the business model. For understanding the change of elements resulting in the change of inter-relationship between the elements is the key for firms to innovate the business model. Research findings provide a flow of design and logical thinking for developing innovative business model of IT distributors in Taiwan.
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