1. What are the lessons useful for their future microprocessor business that you think Intel should have taken away from their experience in the DRAM industry?
Continuous innovation: As a technology company and from the experience of DRAM, it is necessary to continuously innovate to uphold the leadership position in the industry. Intel was left behind after 1103 DRAM in innovation.
Multiple approaches: It is necessary to take the multiple pronged approaches especially in the uncertainty of the technology business. In DRAM, Intel deployed three different process technologies ‘Goldilocks strategy’ and decided whatever technology came to fruition would be mass-produced. This is effectively hedging the risk in the business.
Competitive
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How and why did Intel’s added value change over time? What would you identify as the crucial events, decisions, or moments in that transformation?
From pioneering in memory DRAM semicon to exiting the low-margin DRAM market – Intel was primarily a Memory semicon manufacturer before it entered microprocessors in 1980s. Its added value in the memory industry in 1970s was very high because of its advances in MOS process to produce DRAM. However, with increase in competition and the advancement of Japanese conglomerates in the memory industry Intel was forced to play a chasing game to improve performance and reduce costs. In the mid-1980s, Intel’s market share in the core memory business was <1%, however it was continuing to invest in this domain. They finally exited the DRAM market, which was more of a cash burner with low-margins.
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
Intel Corporation has been great in the past when it had seen success. But of the last couple decade its success has not been top shape. But to achieve this success they are reaching for they will need an effective deployment strategy within their market, Intel Corporation needs to implement a technology strategy that will showcase its encompasses ability to involve business groups throughout the planning process, while maintaining integration of the processes from within things like their corporate planning schedule, Intel’s plans should rapidly change within the market, and staying abreast of the technology curve while simultaneously achieving the largest returns conceivable on every initiative and areas of
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
1. Discuss whether the analysts following Intel appear to have been influenced by any biases, both generally and in their reaction to Intel’s announcement in September 2000 (3 marks).
In the next section we will analyze the level of competition within memory industry based on Porter’s model, Samsung's competitive advantage and its sustainability considering the current market situation. 3. Analysis: Considering Porter’s model as a framework to analyze the level of competition within DRAM memory business, the threat of new entrant is high compared to the threat of substitutes and established rivals in horizontal competition. If we look at rivalry within the DRAM industry between established players, Samsung has a clear advantage over its competitors. Samsung is the market leader in DRAM memory business. It has a wide range of products and its products has a higher brand value. Threat of new entrants is high as Chinese competitors have easier access to large pool of local engineering talent and have a growing market for these DRAM chips. The government is also providing all sorts of assistance, like subsidized land, for the initial setup. Samsung has several options to deter the entry of new Chinese competitors. One option Samsung have is to continue to explore and increase market shares of flash memory markets which is a new and growing market. Samsung can also take advantage by lowering the price of DRAM chips. This would force a price war and drive new
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 your judgment is Intel a “monopoly”? Did Intel use monopoly-like power, in other words, did Intel achieve its objectives by relying on power that it had due to its control of a large portion of the market? Explain your answers.
Q1. How has 3M’s innovation process evolved since the company was founded? Why, if at all, does 3M, known as the “hothouse” of innovation, need to regain historic closeness to the customer?
2. What do you think of the way the team set out to find a market for the Kittyhawk? What correct turns and what wrong turns did they make?
Intel uses a differentiation strategy that builds competitive advantage through product quality, customer service, and brand image management. Intel invests heavily in the innovation of their products including their cutting edge microprocessors and other technological products, so they can ensure leadership within the market. One way to succeed in product differentiation is to continuously innovate and develop new or enhanced products that cannot be easily matched by competitors.
What are the key challenges DELL should be concerned with as it enters the large-scale server market? (3 Points)
Intel TMT had an emotional connect with the DRAMs business. Successful development of 1M DRAM was traded off for microprocessor development more on the behest of the middle line managers who developed the microprocessor technology over time with resources allocated for DRAM research. This was in line with Intel’s entrepreneurial culture which encouraged strategic planning through all functions. By 1986, Intel’s TMT officially approved middle managers’ pursuit to exit from the DRAM business and focus on the microprocessor.
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.
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.
The business level strategy of Samsung’s memory chip business unit is an integrated strategy. Remarkably, they have both a cost advantage and a value advantage over their competitors. In this section we will describe how Samsung “widens the wedge” through cost and value drivers. The data presented in Appendix 1 shows that Samsung’s cost advantage accounts for majority of their competitive advantage.