I. Environmental Factors
            
             I. Social Factors
            
             · Three of the most influential factors in home PC ownership were education, income, and children in the household.
             · Consumers are becoming more computer and component literate.
             · Companies are investing large amounts of money into network developments.
             · The low unemployment rate allows more people the opportunity to purchase novelty items.
             II. Economical Factors
             · Top five computer companies in 1999 ranking according to market share: Compaq (19.1%), Dell (10.3%), Packard Bell NEC (8.2%), IBM (8.0%), Hewlett-Packard (7.1%).
             Compaq
            
             1) Compaq sells almost exclusively through retailers.
            
             2) Their greatest market strength is among Fortune 1000 companies.
             3) They acquired Digital Equipment Company (DEC) in order to
            
             become a global supplier of computer hardware and network
            
             services.
            
             4) Compaq offers a wide range of servers.
            
             5) The DEC acquisition gives Compaq an advantage in the
            
             computer-networking segment, which will look very appealing to large corporations.
            
             IBM
            
             1) IBM is the market leader in both entry and midrange servers.
            
             Hewlett-Packard
            
             1) H-P is the global leader in printers.
            
             2) Their strong global reputation has helped them grow within the
            
             PC market almost as fast as Dell.
            
             3) H-P has teamed-up with Intel and are expected to use cutting
            
             edge technology that will boost the H-P name.
            
             4) They are the market leader in revenue, units, and growth in the
             NT-based workstation market.
             5) H-P markets over 25,000 products.
             · Large drops in the prices of computer components allowed PC makers to lower their prices. These lower prices lowered the profit margin on PCs.
             · The sales of servers are the fastest growing segment in the PC industry.
             · Dell's competition is shifting their strategy to a build-to-order manufacturing style, in order to lower invent...