Intel Corporation Case Study
Que-1- What steps would be necessary to continue that performance (leading performer in 1990)? Intel Corporation was formed in 1986 by Robert N. Noyce and Gordon E. Moore. They concentrated on semiconductor memory components for the computer industry. They had lot of opportunities in the starting. But in the early 1990s, continuing technological advances and Japan’s massive competitive capabilities presented unprecedented strategic challenges for this unique company. Intel’s revenues had fallen during the mid-1980s as its top management discontinued several low-margin product lines and reduced its work force of 25,400 by 7,200. In 1987, Intel began to emerge from the recession. By 1989, it had the highest return on sales of any major semiconductor company in the world. In 1984 Intel had left the DRAM market. Intel’s only remaining position in memory businesses were in EPROMs. In 1986, Intel commanded a 21% share of the $910 million market. In order to maintain that performance, Intel should follow the following:- 1. Intel should maintain its position in the EPROM business. 2. It should also produce Flash.
3. It should continue to treat its employees equal to them and should also keep the healthy environment. 4. It should remain technology focused as always had been. 5. It should maintain its specialization in semiconductors.
Que-2- Should Intel get out of EPROMs to free resources for microprocessors, or should they be continued? According to me Intel should not get out of EPROMs as it was a profitable product in the market. Intel never had a loss in EPROMs. So to generate more revenue and maintain a financial stability, Intel should continue the production of EPROMs because Intel had a big demand for EPROMs in the market. Que-3- Was RISC a distortion of Intel’s microprocessor strategy or part of it? What options could Intel pursue? According to me RISC was a part of microprocessor strategy and a not distortion of...
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