Why Did Ibm Decide? Develop The Model 5150?

1320 Words Dec 4th, 2014 6 Pages
 Why did IBM decide to develop the Model 5150? Was there a strategic purpose for the company to do so?

IBM was already a big name in the market of mini, middle range and mainframe computers. The perspective and promising small computer market, greatly gaining ground due to Apple II and other few, was still a difficult task despite their multi-millionaire efforts.
IBM decided to develop the model 5150 on the lines of their first PC model 5100, which was pretty unaffordable for large masses. Apple had already launched their first PC back in 1976 at a very affordable $666.66. To influence and gain wide acceptance in PC market IBM needed to come up with something unique and economical and rest would have been taken care of by IBM’s big name. This gave them strategic reason to gain hold of growing and promising small computer market.

 How was the product development of the original Model 5150 organised and managed within IBM?

The development plan for model 5150 started when BILL LOWE, the laboratory director in company’s Boca Raton Florida, facility got a go- ahead affirmation from corporate executives after he promised them that he could develop small, new computer within a year.
Project named “chess” for the development consisted of 12 engineers headed by Don Estridge. The team got rare permission to live and work outside of IBM’s design and development process.
The group laid down the basics very clearly: using tested Vendor technology; a standardized, one model product;…
Open Document