Intel case study presentation

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 Ankita Jain

by:-Monika StanPalak Mittal

Sahil NarangSwati TomarWartika

Vashisht

Overview (Continued)

The Intel Case: Fading Memories (Burgelman,

1991, 1994)

Leadership & Capabilities Model (LCM)

Reconsidering the Intel case

Observations and Conclusions

PRODUCT AND SERVICES

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

NM Electronics .

introduced to the world

processor  hits the shelves. 

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 “

Grow profitability worldwide.

Excel in customer orientation

日本のの 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

Identifying the problem

Due 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 performance

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 Coop

Program

 Designing a unique logo.

 Convincing tier 2 and 3 OEMs

initially of the short term and

long term benefits of alliance and engaging them.

 Direct advertisement aimed at

organizational rather product

communication thus enabling a

‘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

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 rule”that favored microprocessors, was more adaptively robust that top-down strategy

 Combination of top-down strategy and bottom-up,

or autonomous, strategy is enacted at firms

• Importance of knowing how and when to bring top-level official strategy in line with bottom-up

strategic action

• Such realignment does not necessarily involve a change in leadership

Intel Corp: Cost and price curves

Intel’s Strategy with

DRAM

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

reinvest in subsequent generations

offered substitute products and overall market

price decreased, Intel moved to new generations

so much on process development or realizing efficiencies through manufacturing

Why was Intel unsuccessful

in the DRAM Market?

◦ Intel though that 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 higher

manufacturing capability wins

Competitive advantage is temporary Life span of strategies are getting

shorter

Use current profits to develop

complimentary capabilities

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

Technology moved so rapidly that patents became obsolete

Small stuff that goes inside other stuff

Thrived on derived demand driven growth

and rapid change