Thursday, March 17, 2016

Third-party distribution

Because IBM had no retail experience, the retail chains ComputerLand and Sears Roebuck provided important knowledge of the marketplace. ComputerLand and Sears became the main outlets for the new product. More than 190 Computerland stores already existed, while Sears was in the process of creating a handful of in-store computer centers for sale of the new product. This guaranteed IBM widespread distribution across the U.S.

Targeting the new PC at the home market, Sears Roebuck sales failed to live up to expectations. This unfavorable outcome revealed that the strategy of targeting the office market was the key to higher sales.

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