Akers to IBM employees: wake up!

Article Abstract:

IBM Chmn John F. Akers recently spoke at a seminar, and an IBM manager took notes. Akers's remarks have surfaced, spreading through IBM's electronic-mail network. The notes indicate that IBM's chairman is not happy. IBM, he points out, is losing market share. The quality of IBM's products, he says, is not adequate and everyone is too comfortable: the tension level should be heightened. He visits company plants, he says, and he hears nothing but good news, and then he visits customers, and he hears about problems. An IBM spokesman confirms the validity of the notes, cautioning however, that they are not a verbatim transcript. Industry observers view IBM's problems as continuing. Some believe that the latest reorganizations signal the beginning of major changes. At least one industry analyst thinks that 'there is a fundamental rethinking' going on.

Office machines, not elsewhere classified, Management, Management Style, Employee Relations, Akers, John

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IBM is expected to cut PC prices today in face of continued industry pressures

Article Abstract:

IBM cuts prices on its best-selling microcomputers responding to industry price wars, economic recession and competitive pressures. Industry executives expect IBM to cut prices by 10 percent to 15 percent; some reductions may reach 24 percent. The reductions will affect low-end Model 30s in the PS/2 line, midrange Model 55s and high-end Model 80s. Sales growth for the industry is anticipated to drop to 10 percent during 1991, which represents healthy growth, but pales in comparison to the 20 percent and 25 percent increase the industry has experienced in previous years. The economic recession has intensified low earnings as many customers are turning to IBM-compatible clone makers to cut costs. IBM competes with such leaders as Compaq Computer Corp and Apple and reports a 15 percent sales decrease for the 1st qtr FY 1991.

Microcomputers, Prices and rates, Price cutting, Recession, Microcomputer, Strategic Planning, Competition, Financial Stability

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