Merced: The New Processor for Hewlett-Packard’s Enterprise Systems Group

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

Hewlett Packard is about extending beyond the limits of classical physics and provides a quantum leap in performance, reliability and security. With the ever changing world of technology and the high demand to stay ahead of the curve, HP Labs is inventing today and for the next generation a new line of HP products and solutions. HP focuses on partnering with you, the visionary customer by solving your enterprise issues. HP has the scale, ideas, expertise and unmatched portfolio of products and services to deliver end-to-end innovation and value. We believe diversity is a key driver of our success. Putting all our differences to work across the world is a continuous journey fueled by personal leadership from everyone in our company.

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?

HP, an expert in the hi-tech industry understands the fiercely competitive environment where technological and innovative advancements could create turbulent

• The market was not ready to embrace a product of this nature at a $250 price tag.

Hewlett Packard (HP) decided to produce 1.3-inch disk drives to become the market leader in a new market and increase HP’s revenue. Although the market for 1.3-inch disk drives was still unclear and still developing, HP decided to organize a special team to develop this new product. This group was multi-talented, with the best engineers from every department in the company. The group also had many priorities for the company. However, things didn’t develop as the Kittyhawk team expected. They failed to sell the new product to the customer they planned. Even though some new customers were interested in this

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.

Changing Market Conditions In the early 1990's, while technological innovation continued to drive the company's success, many business units were being forced to compete on other dimensions. In consumer product lines, low prices, broad availability and ease of use had become competitive requirements. Lew Platt, HP's current President and Chief Executive Officer, once acknowledged the importance of improving customer service and responsiveness, We're not doing as good a job in order fulfillment as we need to. In fact, it's where we get our lowest marks from customers. We have to be a lot easier to do business with. Improvement in order fulfillment will strengthen HP's competitiveness, increase customer satisfaction and reduce expenses, so this is an

With Intel have very few substitutes in the microprocessor industry, it is it is most certain that current customers will not want to switch and use another company’s products. High switching cost presents low bargaining power to the customers mainly because it would be very expensive to switch to a competitor, and since Intel is the leader in the market, switching

By the early 1980, Intel’s total share in DRAM was barely 1% and manufacturing was restricted to one fab out of Intel’s eight fab, where the Japanese semiconductor companies had captured nearly half of the world memory market. There are several factors that forced Intel to exit the DRAM market, those are the same lessons learned.

Intel began supplying microprocessor to IBM. To meet the demand, Intel licensed to as many as 12 other companies to produce 8086 chips, which left Intel with just 30% of the total revenues and profits for that product. Gradually, they reduced the number of licensee to only IBM. Thus they retained the “profits pool” within their value chain.

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.

For the future, SGI still have a long way to go if it wants to be surviving in this market. First, We recommend that SGI should maintain its competitive advantage by continue its traditional way to focus on meeting customer needs, try to provide unique solutions for the toughest technology and business problems, and try to be the first to market with new component technology. Secondly, SGI should try to create more products and services by using its unique and valuable skills like server design and cooling technology in order to gain more customers and competitive advantages. Finally, try to make some cooperation with its competitors. There are no everlasting friends or everlasting enemies in the world. There are only friends with the same interest.

Page eight of the case begins to outline some of the challenges that the HP-Cisco alliance had already faced concerning the sale of joint products. For example, we learn that at HP, Cisco products did not count towards a sales representative’s quota and this resulted in a decline in sales of Cisco equipment by HP sales representatives. Further, if HP or Cisco sales staff had to master not only their parent company product line,

The PC group within HP PPS has been refocused around customer needs. The PC group changed its product line which had a stronger focus on product design. New business models have been the focus of the print group. Business models such as Ink Advantage, is a program designed to target price-sensitive customers in emerging markets. Ink in the Office is an initiative of the print group that targets business customers. The group has expanded differentiated services and solutions by leveraging HP's portfolio of hardware and software, including combining multifunction printers with Autonomy management solutions to develop cloud-based document management services (HP,