The aim of this study is to design a model for formulating business strategies for knowledge-based information technology companies. The research method is applied in terms of its purpose and mixed in terms of implementation method, and descriptive-exploratory in terms of research implementation strategy. The statistical population in the qualitative section includes 14 experts in the field of strategy formulation and information technology, who were selected using a purposeful judgmental method. The statistical population in the quantitative section includes 120 information technology companies, of which 49 companies were selected as samples using a cluster sampling method. The data collection tools in the qualitative section are semi-structured interviews and in the quantitative section, a researcher-made questionnaire. Qualitative data were analyzed using the content analysis method and quantitative data were analyzed using the factor analysis method and SPSS software. Combining the findings from the content analysis and factor analysis led to the identification of a business strategy formulation model in knowledge-based information technology companies. The main validated themes of the model include strategy-related components, environmental and ecosystem components, market-related components, and innovation-related components. The results show that the most influential theme on the formulation of business strategy of information technology companies is the strategy-related factor.