Intel Case Study

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  • Topic: Intel 8086, Intel 4004, Microprocessor
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Intel Corporation: 1968-1997
Strategy Assignment

Date of Submission: 28th March 2012

Submitted by
Abin Abraham
Roll No 104
PGDM-B

Question:
Apply the tetra threat framework in analyzing Intel's strategy to sustain competitive advantage in microprocessors

Threat of Imitation:
* Intel used economies of scale to counter imitation. Project Crush helped it to gain IBM’s contract for the 8088 microprocessor. * By entering into a long term relationship with Microsoft, which was its complementor. * R&D also resulted in Intel coming up with upgrades and new generation of chips at a rapid rate. * Intel like many other microprocessors didn’t believe in patents and copyrights as the life cycle of the microprocessor was very low and the patents would become obsolete In the late 1980s Intel moved towards IPR protection for its technology and products. * Relationships with suppliers were also strong as its procurement strategy was best in breed technology. It also allowed dual-sourcing of critical pieces of production equipment. * Intel always overcame threats of retaliation by producing the next generation microprocessor of equivalent or better quality. This also comes true when it has entered the RISC market also. * Decision not to license the 386 to any manufacturer other than IBM helped Intel to position itself as the leading horizontal niche player in the computer chip segment.

Threat of Substitution:
* When companies and technologies evolved with CISC technology, Intel after little of straddling decide to stick over RISC technology and not respond to its competitors. * Intel has produced x386 processor before Microsoft came out with MS Dos 5.0 version, thus Intel always leapfrogged before the competitors could and making it difficult for the competitors to achieve similar high degrees of compatibility features. * Intel defended itself through Project Checkmate to win contracts. * The ‘Intel inside’ campaign,...
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