Final Case 2 Intel Memo Essay

1293 WordsAug 8, 20156 Pages
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…show more content…
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

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