Essay on Case Study: Chipping Away at Intel (Part 1)

Describe the characteristics of the industry in which Intel operates. How is Intel positioned in the industry?

Synopsis: Doug Aiken took over Tech Depot and replaced the symbolic leader who founded the company, when Aiken took charge he immediately introduced a new management plan, measuring everything from sales of products to employees. He saw himself as the omnipotent leader (mgt p39) Sales dropped after two years and everything Aiken was working for diminished. He did not gets the results that were expected by the company. Many of the staff expressed dissatisfaction with their jobs The board decided they were in need of a new CEO, so they hired

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

(Kroenke, 2013). Hardware dictates how effectively a company can also manage the highly demanding times of operating their business, in addition to managing the re-organizations required to stay

• Negative Publicity: Since Oct 30th, we have encountered a self-propelled negative publicity campaign against Pentium brand and it doesn’t seem to fade away if we don’t do anything.

At this point Mr. Kelly basically had a drive to move forward and he wanted everyone else involved to feel the same not only the investors, and consultants, but the employees as well. Not everyone felt as he did therefore disagreements on how he was conducting business and making changes began within the organization as well as with the consultants. One of many plans that Mr. Kelly put into effect was

Securities and Exchange Commission antitrust allegations to in the past. This article explains somewhat how Intel was buying out there competitors like a monopoly. If there is only 1 company called Intel that sells these advanced microchips then they could set their price at what they wanted. This is bad for customers at that time because there was less market of options to choose from and as the price of AMD’s went up the other industries were sinking and could not compete with lower prices that Intel offered. Consumers could have benefited through Intel’s monopoly at that time by enjoying the latest and fastest technology even though pricing was

In the early 1980s the top competitor in this industry was IBM due to its open system and ease of being cloned. During this same time, Apple struggled to keep pace and changed its competitive strategy multiple times. From 1980 to 1993 Apple positioned itself in the computer industry as the company that provides easy to use desktops with superior software and hardware. Unlike its competitors, Apple did

Intel, also known as Integrated Electronics, is a company that manufactures and sells various types of electronic equipment and hardware. It was founded by Gordon Moore and Robert Noyce in 1968 and has since grown to be a commonly used consumer brand. Intel must ensure that its products are consistently well-made, especially when its products affect the consumer’s experience with the technology he or she is using. Because Intel must implement quality in a wide variety of products, the best practice for the company is to have a physical separation between its departments and to focus on the quality of each individual aspect of its product creation; this will allow each department to specialize in their work functions and allow the company to separate each task effectively.

IBM needs to grow revenue and stay competitive in the dynamically changing computer marketplace of the 1990’s by maintaining technological leadership and accepting the organizational transformation which needs to be undertaken for them to excel. IBM needs to recapture their previously held powerful position in the personal computer and microprocessor markets and regain value in the company which will increase its stock value and competitive advantage in the marketplace.

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).

Another way of achieving the profit of the added value is investment in software development to leverage the advantage of the high performance processors. And that was achieved by development of complementors, although Intel had a relationship with Microsoft, but it was enough, since it required Microsoft years to develop the software, were Intel is moving faster, by adopting the strategy of complementors, Intel build its capital. Intel strategy was to invest in companies that fit strategically into Intel’s business strategy as well as offered a financial return.

Meanwhile, IBM, who was Intel’s star customer, decided to produce own proprietary components. This was an inflection point for Intel. It partnered with Compaq and Microsoft, to break the hegemony of IBM. Though Microsoft products did not

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.

In comparison with the loss of 4 billion in 1992, what Gertsner did was amazing. He coped with IBM problems by solving the most severe to the less one. At that time, problems of products and customers was the most serious which cost IBM billion dollars in loss. Gernstner focused on getting cost out as quickly as possible and ‘clean sheet’ the process and redesign it for global use.