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Intel is the worlds fifth most valuable brand valued at around 35 billion. It is the inventor of the X86 series of microprocessors, the processors found in most personal computers. Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing.
Submitted by:- Ankita Jain Monika Stan Palak Mittal Sahil Narang Swati Tomar Wartika Vashisht Overview Overview Company Overview ◦ History ◦ Mission Statement ◦ Goals and Objectives Core Values External Environment ◦ Competition ◦ Industry Life Cycle Industry Life Cycle ◦ R & D Overview (Continued) Overview (Continued) The Intel Case: Fading Memories (Burgelman, 1991, 1994) Leadership & Capabilities Model (LCM) Reconsidering the Intel case Observations and Conclusions PRODUCT AND SERVICES Internal Environment ◦ Current Financial Performance vs. Rivals SWOT Analysis SWOT Matrix BGC Matrix Future Company Overview Company Overview Intel is the world's fifth most valuable brand valued at around $35 billion. It is the inventor of the X86 series of microprocessors, the processors found in most personal computers. Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing. History History 1968 Robert Noyce and Gordon Moore incorporate NM Electronics . 1970 The development of DRAM and dynamic RAM 1971 The world’s first microcomputer is introduced 1974 The first general purpose microprocessor is introduced to the world 1992 Intel’s net income tops the one billion dollar point 1993 The Pentium is introduced, a fifth generation chip 1997, The Pentium 11 microprocessor is introduced to the world 1999 Intel is added to Dow Jones Averages. 2000 The world’s very first Intel 1 gigahertz processor hits the shelves. Mission Statement Mission Statement “Delight our customers, employees, and shareholders by relentlessly delivering the platform and technology advancements that become essential to the way we work and live. “ Geographic Reach Geographic Reach Philippines Malaysia Shanghai Israel Ireland Massachusett s Costa Rica New Mexico Colorado Arizona California Oregon Company Objectives Company Objectives Extend our silicon technology and manufacturing leadership. Deliver unrivaled microprocessors and platforms. Grow profitability worldwide. Excel in customer orientation. Company Values Company Values • Customer orientation • Results orientation • Risk taking • Great place to work • Quality • Discipline “Our values are timeless and do not depend on businessconditions.” —Andy Grove, Intel Chairman Intel Intel 10 Intel Suppliers Competitors Substitutes Channel Customers Kyocera, etc Motorola AMD, TI, Cyrix RISC 日本の DRAM E N D U S E R Licensees - IBM - Others Direct IBM Compaq Dell Packard Bell C H A N N E L Software Providers • OS • Application collaborators [...]... to a number of clone products in the market, Intel was unable to differentiate its products from the herd Consumers were left baffled for choice and often guessing as to the content and performance of MP Consumers knew Intel through its product offerings which were often being cloned Intel wanted consumers to recognize its product through the brand Intel itself that connoted reliability and superior... Developing Strategic Solution Intel Coop Program marked the birth of brand Intel The program intended to levitate Intel as a brand through 3 strategic steps: 1 Developing and using a brand logo in advertisements of OEMs 2 Engaging tier 2 and 3 OEMs in the program via profitable propositions 3 Prolific advertisement to create awareness about importance and superiority of Intel chips Implementing the... strategic action • Such realignment does not necessarily involve a change in leadership Intel Corp: Cost and price curves Intel s Strategy with DRAM Innovative Design: Intel was the first to develop DRAM Moor’s Law was the brain child of Gordon Moore who was the founder The law was based on the demand of memory Intel also produced World’s first 1Kb DRAM Price High in early life-cycle: make money... generations: As competitors offered substitute products and overall market price decreased, Intel moved to new generations Thus, Intel emphasis was on product design, not so much on process development or realizing efficiencies through manufacturing Why was Intel unsuccessful in the DRAM Market? Wrong Strategy ◦ Intel though that pushing product design through new features ◦ Lack of process capabilities... ‘brand consumer connect.’ Assessing the program Awareness of Intel logos prior to IB strategy was a meagre 24% in European PC market That, within 2 years of its launch soared wildly to 94% Worldwide sales within a year of launch of IB strategy rose by63% By 2002 Intel broke into the list of top 10 most valuable brands Power of Intel brand equity Leveraging Brand Equity Year Brand Equity Interbrand... mln $ 31,112 mln $ 30,860 mln $ 34,670 mln 7 7 5 5 5 5 5 5 Intel Memory Market Share and Sales (Adapted from Burgelman, 1994; Grosvennor, 1993) Estimated memory Sales and Estimated Microprocessor Sales (Adapted from Burgelman, 1994; Grosvennor, 1993) Brief Conclusion Strategic decision in 1984 to exit memory was “sensemaking” after-the-fact Intel s internal selection environment, i.e., “the production... pushing product design through new features ◦ Lack of process capabilities and efficient manufacturing capabilities resisted putting new features to market ◦ Japanese also entered the EPROM market What did Intel learn? Be careful with unidimensional (one product) strategy Protect your technological innovations or avoid commodity business When a novel technology becomes a commodity, the company(s) with... Creating and sustaining competitive advantage in microprocessors Some Important Strategic Ideas Where is the most “value” in a computer? Success attracts competition, company must protect against ◦ 2005 Intel has 82% of PC processor market Technology moved so rapidly that patents became obsolete ◦ protect by know-how, branding, scale, luck Small stuff that goes inside other stuff ◦ Allows focus, expertise, . (Continued) Overview (Continued) The Intel Case: Fading Memories (Burgelman, 1991, 1994) Leadership & Capabilities Model (LCM) Reconsidering the Intel case Observations and Conclusions PRODUCT. “Our values are timeless and do not depend on businessconditions.” —Andy Grove, Intel Chairman Intel Intel 10 Intel Suppliers Competitors Substitutes Channel Customers Kyocera, etc Motorola AMD,. Strategic Solution Developing Strategic Solution Intel Coop Program marked the birth of brand Intel. The program intended to levitate Intel as a brand through 3 strategic steps: 1.Developing