Intel Centrino 's Model Of Strategy For Growth

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

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.

This case traces the strategic decisions of Intel Corporation which defined its evolution from being a start-up developer of semiconductor memory chips in 1968 to being the industry leader of microprocessors in 1997 when it ranked amongst the top five American companies and had stock market valuation of USD 113 billion.

In 2013, Intel spent more than 10.6 billion in Research and Development (R&D), and became the third biggest spender in R&D. Intel invests in R&D to get on with Moore’s Law, an observation by company co-founder Gordon Moore in 1965 that computing power doubles every two years. As the company works to cram more transistors onto its circuits, development eats most of the company’s R&D spending. “It’s getting more expensive to do the development piece of it

In the 1990s, one of the largest and most successful companies in the world was Intel. For PC business, Intel was a significant and beneficial hardware provider.

California has always been at the forefront of the technological revolution. California is home to Silicon Valley, where major milestones such as the invention of the microchip by Intel in 1971 and the first widely popular personal computer (PC) by Apple in 1977 first came about. The state became a hotbed for innovation and creativity, and several digital revolution booms took place. Today, California is also home to famous cultural institutions and national parks including Hollywood, Disneyland, Yosemite National Park, Alcatraz, Angel Island, and the Golden Gate Bridge.

Apple Incorporated is a company, located in Cupertino, California, that produces computers, electronics, and software. Their products include the iPhone, iPad, IPod, and the Mac computer. In addition, they have the iTunes and App stores, and their new service, iCloud. This company, founded by Steve Jobs, Ronald Wayne, and Steve Wozniak, was intended to produce personal computers. The company grew tremendously and expanded from just computers. They are one of the largest information technology and mobile phone maker companies. In addition, they are an extremely valuable brand.

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

In one and half month the single word of one mathematician has turned into a worldwide campaign against us. AMD, Cyrix, and Nexgen are benefiting most from these events. They proved to have become quicker in manufacturing clones of our innovative products. Given this shorter time to market, they may jump on this opportunity to deliver Pentium clones any time. Our strategy to stop competitors copying our new products was heavy patent protection for the Pentium brand, however if our brand image is continually damaged to such extent, that protection would not give us the competitive advantage we expected. Although we have been the chips of choice for most of users, with the current negative publicity, the competitors may find their niche and expand their market share. Cost of switching from one type of processor to another (for example from Intel to AMD) is not significant for computer manufacturers due to the modular nature of this product. We know that this flaw would not affect any significant portion of the personal users (about 3.7 millions chips sold). The business users with heavy calculation needs such as engineering and specifically financial sectors would

America was not buying into that claim and 90% of computers used are Intel based. (Lai, E. (2007) Vista, Mac Use Both Increase. Retrieved January 9, 2008, from PCWorld Web site http://www.pcworld.com/article/id,140422-page,1/article.html).

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.

Since 1998, Intel has developed and used an e-business strategy to maintain relationships with its customers, employees and suppliers. The company's goal is to become a 100% ‘e-business enabled' corporation. In terms of the value chain concept, Intel has reaped tangible benefits in the volume of business it does on the Web, as well as created savings of time and money for both itself and its customers.

AMD (www.amd.com) can use innovation, speed, manufacturing techniques, responsiveness, quality as a base for its products to be unique. It also needs to be focused on customer preference as well. AMD should follow the strategy of differentiation through product innovation and developing product features that customers value than on maintaining a low competitive price. Let me put across different value creating activities that AMD can focus on, which would then lead to world-class products that they can charge premium without any extra cost.

A general definition of technology can be the use of a science in an industry, engineering…etc, to invent useful things or solve problems, in other words, it can be a machine, piece of equipment, method...etc, that created by advanced contemporary way. Technology constitutes a significant source of competitive advantage and progress for firms, since it enables a business to respond rapidly to changing customer demand and to access and develop new market opportunities, therefore, a firm must be up to date with all new in technology development, and make the necessary collaborations or acquisitions or both in order to develop a new process or product and reduce the risk and cost. In this essay we are going to discuss ACER case study in this field (Business Dictionary, 2016).