The overall performance of a corporation is not determined by the performance of a single product, but rather by the aggregated results of the individual business units. Previous research efforts at the business unit level are rather limited and studies focusing on the high-tech industry and its specific environment are even fewer. The research which this paper is based upon was directed at hightech business units in the electronics and computers industry, in Israel. Data on the business activity and its results along with the business strategy adopted by the business unit (using Miles and Snow typology), was gathered and analyzed in an effort to explore the main factors affecting the success of these business units. Two groups of factors that affect success were identified. The factors in the first group affect success regardless of the business strategy adopted. This group includes: The level of investment in technological infrastructure, the quality of manpower, the marketing synergy, and the quality of management. The second group includes factors which are contingent on the business strategy. Factors affecting the success of "defenders" are those which control unit efficiency. "Prospectors'" success depend on the technological experience and qualifications of the business unit manager, and "Analyzers" are mostly affected by the general management qualifications of the business unit manager and his senior staff.