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IBM was at death’s door in the late 1980s.
Consumer tastes were changing, and the company was caught flat-footed.
The PC revolution led by Apple, Intel and Microsoft was cannibalizing Big Blue’s low-margin mainframe business.
Expensive research projects weren’t making it into consumer products, and the company was short on cash to pay its 400,000 employees, according to Irving Wladawsky-Berger, chairman emeritus of the IBM Academy of Technology.
“We couldn’t adapt,” Wladawsky-Berger said. “When the environment changes, you have to change.”