The IBM Computer Business

Paper Summary:

This paper explains that, during the 1960s, IBM entered the computer field with a technological impressiveness 'mini super computer', into a market dominated by Apple Computer Inc. and Tandy Corporation's Radio Shack Division. The author points out that, due to wrong strategic choices, IBM's share in the personal computer market had been eroding until finally, in 2005, IBM had to exit the business by selling out to Lenovo, which is a Chinese company, getting a share of the equity in return. The paper states that today, the most important question in the industry is whether or not the Chinese Lenovo will be able to succeed in the personal computer market in the same way that IBM did years ago.

From the Paper:

"In addition, it is facing mounting threats and challenges from the various other competitors in the market, and several analysts have in fact been issuing warnings to the company about this. Gartner has warned that they would be forced to launch a campaign in which significant 'cost cutting' methods would be analyzed and implemented, so that they would be able to face the growing threats from Dell and from IBM, and Lenovo, with some ease. Today, HP is one of the leading manufacturers of IT hardware in the world, and its sales figures show that in the first quarter of the year 2005, it had sales of about $13.5 billions. However, state experts, this may not be sufficient enough for Hewlett Packard to be able to keep up its current position of unchallenged leader, and it may have to step down for its competitors."

More papers on The IBM Computer Business:

• Research Paper # 59103 : "The Personal Computer Revolution"
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• Case Study # 52514 : "IBM's E-Business"

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