IBM targets small businesses in Latin America
Reuters, Monday, May 17, 1999 at 16:43
By Patricia Zengerle
MIAMI, May 17 (Reuters) - Computer giant International
Business Machines Corp. (NYSE:IBM) took its small business
marketing campaign to Latin America on Monday as it announced a
package of special programs for such enterprises in the region.
The company unveiled new Web pages, a marketing campaign,
sale and lease financing, an array of computer and software
packages, support systems and electronic business options
intended to expand its business in the market segment.
"IBM has competitive prices. IBM has financing available
with regional banks," Peter Andino, IBM vice president for
small and medium-sized businesses, told a news conference.
The overall size of the small business market in Latin
America is some $10 billion, he said. "This market is a market
of small businesses, in reality," he said.
IBM had about $4 billion in revenues in Latin America in
1998, of which about one-third came from small business. Andino
said that percentage had risen from 20 percent four or five
years ago.
He also said a large portion of the company's sales to
larger corporations come from divisions that operate much like
businesses with fewer than 100 employees.
"In the larger companies, most of our business is from
departments," he said.
Fighting its image as a vendor best suited to large
corporations, IBM has announced a program to spend some $100
million worldwide to boost its sales to smaller businesses.
Andino would not say how much of the $100 million will be
spent in Latin America but said the effort was a significant
one.
"It's a sizable commitment from our side," he said.
According to statistics released last week by Dataquest,
IBM's personal computer sales trail those of Compaq Computer
Corp. (NYSE:CPQ) in Latin America. In the first three months of
1999, Compaq, with a market share of 18.8 percent, sold 168,188
PCs, to 71,584 for IBM, with 8.0 percent.
IBM executives said the company plans six more news
conferences throughout Latin America by mid-June to discuss its
small business strategy.
Copyright 1999, Reuters News Service
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