THE troubled computing giant IBM last week radically restructured its personal computing branding strategy and announced a series of initiatives aimed at simplifying PC distribution in a bid to restore its flagging global PC marketshare.
Under the new measures, IBM has reduced the number of brand names under which its PCs are sold from nine to four, and will rationalise the number of components used in its PCs. 'Building-block' components will be shared across various brand models.
IBM said the initiatives were aimed at making the PC business less complex for the consumer, simplifying its PC design and manufacturing process by using more 'common' components and making its distribution system more flexible, allowing for more effective 'built-to-order' fulfilment.
Senior vice-president and group executive Richard Thoman said it was time 'to fundamentally change the way that IBM approaches the PC business'.
Mr Thoman said: 'The PC industry has done a brilliant job of innovation and technology. But, in the process, we lost touch with the majority of customers - who are all dazed and confused by the complexity of the technology, the array of choices and the level of support.' For IBM, which once had the biggest slice of the world PC market, the restructure represents the first salvo in its battle to claw its way back to the top.
While IBM's PC business - like the rest of the industry - has grown rapidly, in the past two years it has lost marketshare to competitors such as Compaq and Gateway.