This research presents an export marketing proposal for consideration by Computers Unlimited, Ltd. Computers Unlimi ted is a distribution company specializing in International Business Machines (IBM) microcomputers. This proposal repre sents the firm's initial efforts in the development of an export program.
The proposal contains three major elements. The first is an assessment of the industry and its marketing strategies. This assessment is followed by an examination of the export target market. Lastly, the commitment required of Computers Unlimited for the proposed export program is considered.
The microcomputer line now being produced by IBM is the PC 2 series personal computer (PC). This assessment is con cerned with the approaches taken by IBM in the marketing of the PC 2 series to (1) individual or household consumers, and (2) organizational consumers.
Value Line Investors Service (1986, p. 1084) said of the computer and peripherals industry in early 1986, that the
"worst of the storm that rocked the . . . industry throughout 1985 has passed, but don't look for a quick rebound to health." The service predicted that those firms which were successful in 1985 in the areas of reducing overhead costs and ridding them selves of underperforming assets would likely earn profits in 1986. The service also predicted that those firms "in the midst of new product life cycles" should likewise do well (Value Line Investors Service, 1986, p. 1084).
In fact, the industry did not do quite as well as Value Line had projected; however, the service was correct as to which of the individual firms would likely recover and thrive (Value Line Investors Service, 1987, p. 1087). IBM was one of those firms in the industry which did recover and which con tinues to thrive. IBM also did quite well in 1987 and 1988 (Value Line Investors Service, 1988, p. 1082; Value Line Inves tors Service, 1989, p. 1084).
There are two factors...