1. Degree of Product Differentiation
   1. Command higher prices
      1. Apple computers run their own operating system
   2. Brand awareness
      1. Consumer knowledge of brand
   3. Niche labor skills
2. Product Innovation
   1. Boost demand for computers
   2. 2010 - Apple introduced iPad tablet computer and sold 3 million units in 80 days
   3. demand for servers will increase with the expansion of the "cloud"
3. Key Success Factors
   1. Ability to quickly adopt new technology
      1. Quickly incorporate new technologies to have head start on competition
   2. Effective cost controls
      1. Market shares would be reduced without cost controls
   3. Effective advertising and branding
      1. Advertising is important to differentiate the product from the competition's
   4. Offering a "one-stop shop"
      1. Handle all IT needs of clients
   5. Strength in Export Markets
      1. Growth expected to occur outside the U.S.
4. Supply/Demand Conditions
   1. Supply
      1. Semiconductor manufacturers supply computer manufacturers with computer components
      2. Wire manufacturers supply computer manufacturers with electrical and communication wires to connect computer components
   2. Demand
      1. Information service businesses purchase computers and servers to efficiantly deliver information to customers
      2. Government agencies buy computers primarily for public employees to use
      3. Consumers buy computers for personal use, including entertainment and internet access
5. Analysis of Stage in Life Cycle
   1. DECLINE stage
      1. Number of firms falling at a 2.4% annual rate
      2. 2006-2011, prices declined 6.7% annually
6. Pace of Technological Change
   1. HIGH pace
      1. Keep low inventories
      2. Shifted sales focus to direct online sales