Essay Intel Corporation, 1968-1997

For years, AMD held the place of a distant follower of the large microprocessor market leader, Intel. Up to there, the competitor Intel led the market (with a “push” strategy) by creating consumer needs thanks to technological innovations. Those were linked with strong marketing campaign in order to facilitate a quicker adoption process of their new product line. However, in 2003, AMD change its traditional strategy to use a widely different one by switching into a blue ocean strategy. Indeed, AMD has changed course to become a “starter” firm. AMD has decided to launch at first its own brand server microprocessor range, called “Opteron” before one of Intel. At this moment, the firm made the decision to initiate the moves of server segment and therefore take heavier risks in term of investments, sales, pushing partners

Intel operates in an industry, which is comprised of products involving high research and development costs, continuous product improvement and new innovations. The companies in the industry are having high economies of scale and are knowledge based. It helps both the service and manufacturing sectors in the growth process. Intel is positioned as a leading company with its ability to adapt to technological changes and its strong relations with other businesses who are major buyers of integrated circuits. The industry in which it operates is very competitive and comes with high risks as

Led the PC microprocessor market and ousted competition through sole licensor decision: Post losing a contract to supply microprocessors to Apple, in early 1980s, Intel won a contract to provide the same to IBM for its PCs. IBM PCs were a huge success and catapulted Intel to gain market leadership. IBM initially forced Intel to license its product to other players to secure adequate supplies reducing Intel’s potential

* In 1985, Compaq and IBM do a research and development (R&D) and make move Apple into the mainstream by becoming low-cost producer and joint venture with IBM. This’s one of Apple failure moment and Apple Gross margin drop to 34%.

Intel excels at top-down innovation, where highly differentiated components and electronics command a high gross margin relative to competitors, enabling faster design wins with Original Equipment Manufacturers (OEMs) and development partners. This top-down innovation flow within Intel is so dominant, that the product design teams are significantly more productive than even the most advanced business process management teams (Segerstrom, 2007). Microprocessors and the follow-on Internet, networking, security and integrated motherboard products are all predicated on this top-down innovation cycle that leads to product line proliferation in Intel (Zimmerman, 2010). DRAMS were undifferentiated in structure, lacked industry standards that could create differentiated performance or compatibility based on adherence or alignment to standards or customer requirements (Nicholson, 1997). Intel chose to compete on the only other area of their core strength as a company, which is quality management and yield levels (Clark, Walz, Turner, Miszuk, 1993). Getting the yields for DRAMS to 60%, which for a brief period of time lead the global industry, only served to accelerate a very high level of commoditization in the industry (Voss, 1998).

Under the tough and demanding Andrew S. Grove, Intel drove employees to higher and higher levels of motivation and performance…. Bizarrely, but quite typically, Grove instigated a much-hated system called 'the late list '. He got irritated by early morning meetings that didn 't begin on time and insisted on security staff getting signatures from anybody who arrived after eight o 'clock…. Yet this was the same company where open argument and confrontation, often vigorous in the extreme, were an operating principle. And it was the same company in which relatively lowly engineers, acting on their own initiative, created a magical innovation, the allconquering microprocessor. DeBono and Heller

This report discusses the case study ‘Intel Research: Exploring the Future [1], published in 2005 by the Harvard Business School. The discussion is divided into three different sections: overview, analysis and conclusion.

Compaq and Dell stole IBM’s PC market with the right price and the right message.

History By the 1950’s, IBM became the dominant vendor in the computer industry with the release of the IBM 701 along with many other series of mainframes, which are large central processors. Then in the1960’s and 1970’s, the company had to diversify to get on the same level as smaller companies, such as Digital Equipment Corporation, who were introducing microprocessors. This threatened IBM’s position in the computer industry. Their response was coming put with a personal computer, software, and services. In 1981, IBM officially introduced the IBM PC with a compatible hardware platform. This was a large accomplishment for the company. A few years later, on May 1st, 2005, IBM sold its PC division to the Chinese company Lenovo for $655

Lenovo Group Limited takes cross-border M & A way to achieve its internationalization, and integration through mergers and acquisitions to achieve the strategic development of the new company.

Compaq Computer Corporation was a company founded in 1982 that developed, sold, and supported computers and related products and services. Compaq produced some of the first IBM PC compatible computers, and were the first company to legally reverse engineer the IBM Personal Computer. They possessed a large marketplace and were a severe competitor for the technical giant Hewlett Packard. Both of these organization were at a crossroads with regards to their financial futures and they were competing against the other for market penetration of the personal computer.

Introduction:In 2000 the Microelectronics division of IBM found itself struggling as an unexpected rapid rise of demand overwhelmed the company's capacity. Chris King and her team had put a lot of effort and time into making the Network Technology Unit into what it had become. King and her team had started out by setting very bold targets (a BHAG if you will) of achieving growth levels that were unimaginable at the time and most importantly of becoming a leader in the business of microchip technology. In order to accomplish this, the team started the planning process by conducting a thorough analysis of the external environment, scanning for potential clients and competitors, as well as looking internally for highly motivated and skilled

The industry in which Sun Microsystems is competing in is computer workstations for scientists, engineers, and commercial companies. Sun’s founder’s believed there was demand for a desktop computer workstation costing between $10,000 and $20,000 in a market niche, ignored by minicomputer makers such as, IBM, Data General, Dec, and Hewlett-Packard. Sun’s executives believed that they would only have a short time in this market before the other large companies decided to enter, because it was an exclusive market with a high entry barrier, but with opportunity for extensive profitability.

Intel changed marketing history by achieving to publicize an inner piece of a product that could not be seen from the outside. By placing tags on products, they could display their company logo and the model of the product inside the computer, thus making publicity to an ‘ingredient’ inside the whole. In those initial marketing campaigns Intel well-known themselves from the competition by labelling their products with names instead of only number; this helped them gain reputation surrounded by the customers.

Intel primarily being a chip manufactures company, mainly focused on personal computer and servers. They did not focus on non PC market which included cell phones, PDAs etc. .They should have invested and focused on other chip based electronic gadgets that were becoming popular among people.