Today, IBM is the leader among U.S. computer firms. But this was not

always the case. In fact, the challenges posed by competitors in the 1950s

were corporate-life-threatening. The IBM story of the 1950s is an

illustration of how problems can become opportunities.

When IBM sold its first computer in 1953, it was in a rather weak 

competitive position. The first computer was even called “IBM’s

Univac”, indicating its strong resemblance to Univac, which was created

 by Remington Rand, a company that was ahead in the field by 4 years.

The Census Bureau, an important customer, opted for Univac cover the

IBM equipment. The greatest fears were of the powerful companies

General Electric (which was six times the size of IBM) and RCA (which

was twice the size). As is so often the case, crises and problems became

opportunities. In a lengthy meeting, Thomas J. Watson, Jr., and his

top managers decided to make IBM a winner in the commercial

market.

 

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