Cyber attacks have significantly increased over the last few years, where the attackers are highly skilled, more organized and supported by other powerful actors to devise attacks towards specific targets. To aid the development of a strategic plan to defend against emerging attacks, we present a high-level taxonomy along with a cyber defense model to address the interaction and relationships between taxonomy elements. A cyber-kinetic reference model which is used widely by U.S Air Force is adopted as a baseline for the model and taxonomy development. Asset, Cyber Capability, and Preparation Process are the three high-level elements that are presented for the cyber defense capability model. The Cyber Capability, as the focal point of the study, uses three classifiers to characterize the strategic cyber defense mechanisms, which are classified by active, passive and collaborative defense. To achieve a proper cyber defense strategy, the key actors, assets and associated preparation procedure are identified. Finally, the proposed taxonomy is extensible so that additional dimensions or classifications can be added to future needs.