Since IBM introduced its independent Personal Systems business unit, it has had to modify its strategy in this market segment with ever-increasing speed in response to the fierce pressure being applied by competitors. In a recent interview with Tribuna Informatica, IBM Espana SA’s director of personal systems, Javier Sada, said now was a critical time, with many battle fronts emerging in different areas of the personal market market, including distribution, services and communications. He said: So far (with respect to Personal Systems) IBM has failed to make users appreciate the efforts it has been making, and we intend to put this right with clearer communication. The current price war as a means of securing a larger slice of the market is unnecessary. However, IBM has made the decision that no competitor should be allowed to gain a leading position. Although it’s madness to continue cutting prices, we won’t under any circumstances let anyone overtake us. And IBM Espana has recently sliced 32% off the prices of its main personal computer lines. Questioned about the incorporation of Pentium chip in new models, Sada said that the principal demand within the Spanish market did not make Pentium an essential requirement, inasmuch as 80486SXs accounted for around 33% of the market, while the DX share was between 26% and 28%. As for IBM Espana’s sales, according to Sada, PS/2 and ValuePoint accounted for almost 64% of equipment sold, with PS/1 business representing 20% and the remaining 16% being shared between portables and servers. Sada is confident that IBM Espana can maintain its healthy personal computer market share, just under 15%, four points ahead of its closest competitor, Ing C Olivetti & Co SpA.
