Presentation prepared by: Hryko L.V., Kondratenko
Short historic overview:
Founded by Robert Noyce and Gordon Moore in 1968.
Largest semiconductor chip manufacturer in the
found all over the world.
Bargaining power of suppliers
Abundance of suppliers
Invest in own suppliers Intensity of exciting rivalry
Suppliers do not have much power.
With such few semiconductor manufacturers, price
has to remain competitive from suppliers.
Suppliers have to be able to maintain high demand for
supplies in random spurts.
Threat of new competitors:
Customers and buyers trust intel and AMD
High capital requirements.
Advanced technologies are required
Patents limit new competitor
High learning curve
Threat of substitute
A lower performance
Limited number of substitute
No substitutes are available outside of the current
competitors within the industry.
Fake chips are currently being produced overseas.
New materials are trying to be developed as
The value based ( Celeron)
Mainstream ( Xeon)
High- performance category ( Pentium 32- bit)
Industry life cycle : EMBRYONIC
Intel first introduced 1k DRAM
TI and Mostek had better design and low cost
Intel lost a full generation to Japanese
Intel faced strong price competition from Japanese
Intel introduced 1 – megabit DRAM but has lost the
1980 – “Project Cursh” +Design Wins (Intel and IBM):
IBM open standard, success in format war, being a free
rider by design wins.
1983 – License Control: restrict licenses, more design win and more revenue, set up the industry standard
Intel vs AMD: 1990 Red X camping - specifically
against AMD and the “Intel Inside” end-user branding
and advertising program.
In June 1994, Intel engineers discovered a flaw in
the floating-point math subsection of the P5 Pentium
The New York Times ran a piece by journalist John
Markoff spotlighting the error
Intel offered to replace every chip. This resulted in a
1994: Pentium Bug: good response by product flow
and effective end user promotion.
1990—95: Architectural competition: RISC vs CISK.
MATURE: Evaluate Intel’s shift in
strategy under CEO Craig Barret
Aggressive strategy moves
To enter new business: spent roughly $12 billion on
acquisitions and internal ventures in new markets
such as networks, wireless, communications, and
online services from 1998 to 2000
To shift to the new position: changed the corporate
mission statement to “being the preeminent building
block supplier to the worldwide internet economy” in
Intel has not reached the decline stage because of
their ability to change, re-invent itself and re-grow
Intel is dependent on the effectiveness of its
leadership adopting sound values, strategies, and
creating an aligned, empowered organization
Increased regulation of chemicals used within
Patents, copyright, trade secrets
Looking for ways to reduce water use
Lawsuits with patent infringement
Concerns with World Economy
Taxes at home and abroad
How the World’s economic state is affecting Intel
How PC’s are being replaced
Intel getting into new industries to grow profits
Consumers are dependent on technology
Shift in social norms
Focus on Corporate Social Responsibility
Intel is trying to create newest and best...
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