Companies looking for a long term success in a competition, usually clear their goals, formulate some strategies and develop a strategy implementation plan to achieve the goals. According to recent developments about knowledge creation and storage, transforming knowledge to a product and selling in a market has been noticed. However, one can hardly find about special characteristics of knowledge as a product, business strategy formulation for a knowledge supplier business, and customized and specified business models for knowledge provider businesses in literature. In this research, a business strategy formulation model, for a virtual organizational knowledge provider in cyber space is developed. The model is based on the popular Product Life Cycle model. The market space is the Internet/intranet and organizational knowledge is considered as the product. In the proposed model, twelve distinct curves have induced based on the The developed model has been used for strategy formulation in a management consultant company. Knowledge products and the customers have identified and the value aspects in both the customer and the stockholder point of view have defined and clarified. The two identified knowledge types were both in early stages of the “Introduction” part of their life cycles, based on the strategic analysis performed. Consequently, the “ Alliance ” e-business model has been accepted as the suitable e-business model for the knowledge provider virtual business. Also, the CEO found fifteen out of nineteen proposed business strategies, suitable for the department of consider.
