'Segment' is new buzzword for PC sellers

Article Abstract:

Marketing strategy for microcomputer retailing increasingly uses a market segmentation approach. This approach results in a proliferation of 'niche' or specialty computer stores targeting particular types of potential customers. Price wars fueled by flattening sales are pushing retailers toward target marketing. Also, large computer-manufacturers, particularly IBM, believe large profits are possible by aiming sales at specific categories of small business or certain professions and in combining hardware and software into tailor-made packages. This approach requires a good understanding of the niche targeted and availability of appropriate software. Meanwhile, computer retailers are suffering from expanding competition, declining sales and price wars.

Computer and software stores, Analysis, Planning, Market segmentation, Target marketing, Computer stores

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IBM, amid confusion over its goals, is planning to sell 'clone' PCs in Europe

Article Abstract:

IBM does in fact plan to sell 'clone' microcomputers in Europe. Confusion about this policy was engendered by remarks made by IBM's microcomputer chief, James Cannavino, who summarized IBM's clone strategy, saying that the IBM company does not sell clones. Now, IBM says Cannavino meant that the IBM brand name will not be associated with lower-quality machines. IBM will, in fact, buy clone computers made in Asia and will resell them under a non-IBM label through a European subsidiary. IBM currently is pursuing various marketing strategies, including the possibility of mail-order sales and creating new lines of products. IBM's aim is to stop microcomputer market-share losses to clone manufacturers.

Prepackaged software, International Business Machines Corp., IBM, Compatibility (Computers), Compatible Hardware, Discount Hardware

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PC clones are translating into profits for growing number of European firms

Article Abstract:

Microcomputer clone manufacturers in Europe are reporting high profits despite a lull in the computer industry. As users seek inexpensive systems, microcomputer costs are dropping and more IBM PC clone manufacturers are emerging. Many computer companies recognized that they could purchase cheap parts in Asia and build hardware systems for as much money as it costs to import systems. The two major companies, Vobis Microcomputer AG and Elonex, are branching out beyond the European market and are threatening the market share of IBM and Compaq Computer Corp. Some companies are moving beyond traditional channels and are offering mail-order computers with inexpensive price tags.

Management, Profits, Market share, Profit, Elonex, Vobis Microcomputer AG

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