Case study INTEL
The first handheld calculators and PC’s were developed through the innovation of Intel‘s microprocessors.
In the early ass’s increased competition from Japanese semiconductor manufacturers had dramatically reduced the profitability of this market this made Intel to shift the company’s focus to microprocessors. From the late ass until the late ass Intel had a arrear period of unprecedented growth as the primary hardware supplier to the PC industry, supplying microprocessor to MM.
Intel’s product line of Pentium processors had become a household name. Today at least 80% of Intel’s processors are used In PC’s globally. Their product line consists of: chippies, motherboards, flash memory used In wireless communications, networking devices, laser printers, industrial machinery, and alular phone base stations.
Nilsson: Delight our customers, employees, and shareholders by relentlessly delivering the platform and technology advancements that become essential to the way we work and live.
Values: Customer Orientation Results Orientation Risk Taking Great Place to Work Quality Discipline
Objectives: “Extend our silicon technology and manufacturing leadership Deliver unrivaled microprocessors and platforms Grow profitability worldwide Excel in customer orientation”
Major issues and Problems
- Dust would contaminate the circuits during manufacturing. Solution: Intel developed “clean rooms” for keeping dust out of the process. Recommendation: I agree with the decision of the company to develop “clean rooms”. Now that they already have these rooms, they can now have a product that would work 101% at its best for the consumers.
- Etch circuit lines on silicon wafers, without having the etched lines fracture and break as the water was heated and cooled repeatedly during the manufacturing process. To “dope” the metal oxide with impurities, making it less brittle. Intel subsequently went to some lengths to keep this aspect of the manufacturing process secret from monitors for as long as possible. Recommendation: Intel is so intelligent and optimistic for its products. With this problem at that time I am pretty sure only Intel thought of this wonderful solution.
With this, the challenge now is to maintain this technique or process to constantly produce “quality’ products.
- Intel unremunerated Japanese tenants In terms AT technology wanly rest dropping off DRAM; one of their flagship product. Intel did not risk investing a new fabrication facility at a cost of $600 million that might affect the operation of its other products especially the microprocessor. Recommendation: Intel should’ve been more conscious and aware of the possibilities and facts that new entrants and competitors will always be a threat for the company. With its decision, it is kind of frustrating for the fact that the DRAM was once the best innovation and product of Intel. But the company left with no choice but to exit the DRAM business.
I wouldn’t risk my other products to get affected by this mistake.
- The company exited its struggling communication chip business. The workforce was cut by 20,000, while costs were reduced by $3 billion. The company did not lose sight of the need to produce processors for mobile devices.
In mid-2008, Intel introduced a new line of low-power consumption chips called atom.
Intel has also been making moves into the graphics chip business. Persistence and perseverance for your product should always be present in the company. I Just commend Intel for being so flexible and how quick they are in satisfying the ever changing demands of the consumers. Study Key success factors for Intel: Management Intel placed top priority on their people, and encouraged openness, fairness, and responsibility, Intel was able to take full advantage of its workers. Mistakes The most talented and brightest people that were employed were given leverage hen mistakes were made so that they would be encouraged to develop breakthrough technologies.
Hard Work Moore and Nonce refused to shy away from their inexperience and being willing to do what work they needed. Also admitting their limitations, they were able to seek out qualified employees to help build the company. Competition They learned that the key to entrepreneurial success was by being in a constant state AT awareness Ana Tear AT your competitors, entrepreneurs can Decode proactive instead of reactive, seizing new opportunities as they present themselves instead of letting them pass them by. Exclusivity.
By specializing and focusing on a niche market, Intel was able to not only stand out from the crowd, but to become market leader in the industry. Competitive Advantage: Expertise in Manufacturing Highest standards in high-quality clean production The company invests vast sums in R and manufacturing It designs quality products It is able to leverage its manufacturing capability.
This means it can increase production to bring product to market in large volumes. Increasing volume and getting the product onto the market as quickly as possible are important elements in creating and maintaining a competitive advantage.
It has a regular cadence to the development of new products or improvements to existing ones Analysis SOOT: Strengths Intel is a globally recognized brand name and has strong brand loyalty from its consumers. Intel was the pioneer in microprocessors for PC’s and memory devices. Intel is a global technology corporation and the world’s largest producer of semiconductor chip, based on revenue.
Intel presently has around 80% of the microprocessor market share whereas MAD has roughly 17% of the market.
Intel distinguished itself from a ‘commodity like position and established itself as the ‘brains’ of the computer industry Weaknesses Intel has been accused of using divisive strategies in defense of its market position against its competitors. Intel had uses its market dominance to unfairly stifle competition Since 2000, Intel could not maintain the position as the dominant supplier of microprocessor in the industry. Retail prices are higher compared to competitors. Opportunities Product development and markets penetration in the existing markets is also a good opportunity.
Advancement in technology also provides the opportunity to offer new products.
Offering more diversification with their products in related and unrelated business ouch as: security devices, broadband and cellular industry. Backward and forward integration may reduce the cost, improve the quality and service. Threats Advancement in technology obsoletes the manufacturing facilities and products. The strong price war is going on between PC producers. Many competent PC makers are using inferior performance ICE’S.
Changing customer taste and preferences along with the reduction in brand loyalty is a major threat.
Currency changeability in different countries create problem for the business of the company. The company is facing strong competition to sustain its market share. Intel Corporation is facing strong political instability, regulation and tariffs in different countries. Product specialization of Intel can become a big threat.
Having a limited product line Intel runs the risk of being forced out of the market by a better product. The fast development of cell phones and other mobile gadgets can perform the same tasks as PC’s and is having a major negative impact on the PC’s market.
Conclusion Technology Strategy Intel began in memory production and development in 1968 Competition with Japanese firms with larger economies of scale reduced Intel’s arrest share Intel’s development of the microprocessor led to more and more R&D being assigned to this branch of the company Technology strategy change came from the meme AT ten company, DRAM was still pursued Trot senior managements perspective until 1986 Microprocessor development allowed Intel to sustain its revenue increases In 2001, Intel produced microprocessors with integrated Wi-If In early asses, Intel invested heavily in semiconductor production facilities to achieve overwhelming economies of scale.