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Today, IBM is the leader among U.S. computer firms. But this was not always the case.

In fact, the challenges posed by competitors in the 1950s were corporate-life-threatening. The IBM story of the 1950s is an illustration of how problems can become opportunities.

When IBM sold its first computer in 1953, it was in a rather weak competitive position. The first computer was even called IBMs Univac, indicating its strong resemblance to Univac, which was created by Remington Rand, a company that was ahead in the field by 4 years. The Census Bureau, an important customer, opted for Univac cover the IBM equipment. The greatest fears were of the powerful companies General Electric (which was six times the size of IBM) and RCA (which was twice the size). As is so often the case, crises and problems became opportunities. In a lengthy meeting, Thomas J. Watson, Jr., and his top managers decided to make IBM a winner in the commercial market.

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