Intel Corporation, 1968 1997 Essay

1075 words - 4 pages

Intel Corporation, 1968-1997


This case traces the strategic decisions of Intel Corporation which defined its evolution from being a start-up developer of semiconductor memory chips in 1968 to being the industry leader of microprocessors in 1997 when it ranked amongst the top five American companies and had stock market valuation of USD 113 billion.

Intel in DRAM business:

The strategies employed by Intel for DRAM business focussed on:
1. Pushing the envelope of product design
2. Being first to market with newest devices
3. Premium pricing and skim marketing. No emphasis on mass production

Initially, Intel had a successful run in this business as they:
1. Had no immediate competition
2. The demand for memory chips was insatiated. All products had successful launch and carried premium pricing.
3. The time lag between product launch was spaced conveniently to allow for new product development.

However, the entry of Japanese companies posed a threat to the market share of Intel.
1. Product Life Cycle shortened as more companies had product launches which propelled product development at a higher frequency
2. Larger market share enjoyed by Japs translated into higher cumulative volumes, which gave them a manufacturing cost advantage.
3. Japs invested more on plant & equipment in comparison to Intel Corp.
4. Japs had technological advantage in photolithography
5. Japs were quicker to introduce new products of higher configuration

Intel and the Microprocessor and the Battle to Set a PC Standard:

In 1970, Intel got into the microprocessor business with Busicom, a Jap firm, as collaborators. During late 70s, Apple collaborated with Motorola for microprocessor purchases against Intel who had similar products to serve the growing PC market.
IBM realized the potential of the PC market and decided to adopt open architecture to grow fast. Intel realized the advantage of partnering with IBM and initiated projects like “Crush” and “Checkmate” to counter Motorola to ensure microprocessor supremacy. With the success of securing IBM contract along with more wins, Intel was on set on track to ensure industry dominance.

Exit from DRAMs

Intel TMT had an emotional connect with the DRAMs business. Successful development of 1M DRAM was traded off for microprocessor development more on the behest of the middle line managers who developed the microprocessor technology over time with resources allocated for DRAM research. This was in line with Intel’s entrepreneurial culture which encouraged strategic planning through all functions. By 1986, Intel’s TMT officially approved middle managers’ pursuit to exit from the DRAM business and focus on the microprocessor.

Intel as a Microprocessor company

Intel began supplying microprocessor to IBM. To meet the demand, Intel licensed to as many as 12 other companies to produce 8086 chips, which left Intel with just 30% of the total revenues and profits for that product....

Find Another Essay On Intel Corporation, 1968-1997

Hello World Essay

626 words - 3 pages into more fields. Intel Corporation was founded in 1968 by Robert Noyce and Gordon Moore. Unlike many Silicon Valley start-up companies, it had $2.5 million in funding through its venture capitalist, Arthur Rock. The leadership of this new company consisted of middle-aged, well-known men in the technology field. Intel’s first product was the memory chip. After creating the 1103, a dynamic random-access memory (DRAM) chip and its instantaneous

Intel Bio Essay

903 words - 4 pages INTELThere are a lot of important people, and technologies that influenced the development of the PC but I selected the Intel Corporation with its contribution of the microprocessor. It was in 1958 that Bob Noyce, Gordon Moore and six other ex employees of Fairchild Semiconductor came up with the idea of the microprossor and to start up their own company. "One year later Noyce patented a planar process for coating a layer of oxide over silicon

Intel--Reinventing the company

760 words - 3 pages When you thought they had hit their threshold, here comes Intel again recreating the wheel! Andy Grove was Intel's actual forth employee when it was founded in 1968. So you can pretty much say he has seen the company from the ground up, running it from the early 80's until the late 90's. In the beginning Intel was considered a fierce contender in the semiconductor industry, but now is a primary manufactory of microprocessors (which were

caso intel

823 words - 3 pages Caso 4INTEL CORPORATION: 1968-2003Rafael GalloClaudia MazzaLas competencias centrales, como las define Prahalad y Hamel, son el conocimiento colectivo de la empresa acerca de cómo coordinar diversas habilidades y tecnologías de producción. Estas permiten crear sistemas integrados únicos que refuerzan el ajuste entre la producción y las habilidades tecnológicas de una empresa. Una compañía

Debt Equity Paper

1124 words - 4 pages the organization's requirements are met. In this paper, Team D will evaluate equity and debt instruments from both the Intel Corporation and the Boeing Corporation.Intel Corporation SummaryIntel Corporation is the world's largest semiconductor chipmaker, based solely on revenue. Intel has been incorporated in California since 1968 and reincorporated in 1989. As with all companies, the need for capital is important, therefore they have used debt and

Central Processing Unit

1392 words - 6 pages the computer would have to wait for the RAM to have more space. This causes the computer to run slowly. So the more RAM, the more space the computer gets to store data for the CPU. RAM is a key component of the computer for the CPU (Bradford). The main CPU manufactures are Intel® and AMD Inc. These two companies had a small start, with a big outcome. Intel® started as a small company, founded in 1968 in Mountain View California. Their first

The Power of Branding

2713 words - 11 pages , a company must masters on the ‘four Ps”. 3.0 Case studies 3.1.1Case study on IntelCompany Intel is the most well-known electronic devices since 1968. Intel electronics is a leading manufacturer of computers, motherboard chipsets, graphic chips and other devices that related to communications and technology. The “Intel Inside” campaign brings a good impact that let majorly aware on the computer trademark. Back in 1969, Intel logo was created

Successful Professionals

1187 words - 5 pages inventing a silicon-based integrated circuit. Their partnership evolved to be a multi-billion dollar corporation called Intel. It was very difficult for them in the beginning because demands kept changing. There were a lot of sacrifices made, but it increased the strength of the company in the long run. Both of these men made huge contributions not only to the computer world

The History of the CPU

3022 words - 12 pages processor perform certain key tasks in a streamlinedfashion. The Pentium MMX performed up to 10 - 20% faster with standard software,and higher with software optimized for the MMX instructions. Many multimediaapplications & games that took advantage of MMX performed better (had higher framerates, etc).The AMD K6, also released in 1997, closed the gap (in terms of performance)between Intel & AMD & was a good alternative to a Pentium

Business and communications

1874 words - 7 pages , Inc. 1972.Murphy, Dennis. Better Business Communication. New York: McGraw-Hill, Inc. 1957.Reuters Press Writers. ?Intel, Digital Pact Imminent, Possibly Today?. yahoo online news Online. 22 October. 1997.Stern, William M. ?Lumpy Mashed Potatoes, Yuck!? Forbes. 28 Mar. 1994: 63-63 Zelko, Harold P. and Harold J. O?brien, Ph.D. Management-Employee Communication in Action. Cleveland: Howard Allen, Inc. 1957.

How have computers become so fast?

1082 words - 5 pages get where we need to be and produce the material perfect for the task at hand. Works Cited Berkeley Ph.D., I. (1997). What is Artificial Intelligence? Retrieved from Dow Corning Inc. (2004). Silicones: Electronics Changing the Picture of Electronics Worldwide Retrieved from Intel Corporation. (2014

Similar Essays

Corporate Strategy Essay

3098 words - 12 pages Corporate StrategyCase 1: Intel corporation 1968 - 19971 IntroductionIntel Corporation was founded in 1968 by Robert Noyce and Gordon Moore, their initial strategy was to develop semiconductor chips for mainframe computers and minicomputers. Through the years this strategy has been adapted to some changes in the environment. They started with producing DRAM, now almost 30 years later they developed, and produce the Intel Pentium Processor

Microprocessors Change The World Essay

1016 words - 5 pages discoveries would not have taken place had Robert Noyce and Gordon Moore not resigned from Fairchild and create their own company (Intel) in 1968. Like many other people nicked named the "Fair children" Noyce and Moore left Fairchild to create a start-up. With a one page typed idea of what he wanted to do with his new company Bob Noyce was able to bring about the backing up of his and Moore's new venture from San Francisco venture capitalist Art

Intel Inside Essay

4234 words - 17 pages Part A - The Intel Corporation1. The history of IntelIntel was founded in 1968 by Robert Noyce and Gordon Moore, both pioneers in the semiconductor industry at Fairchild Semiconductor. The initial goal of the company was to develop memory products based on semiconductor technology. In 1969, Intel introduced a 256-bit static random access memory (SRAM); this was followed in 1970 by the first 1 K dynamic random access memory (DRAM). By 1972

Competitive Advantage Case Study: Intel Corporation

1673 words - 7 pages Introduction Intel Corporation is the world’s largest semiconductor chipmaker. Founded in 1968 by Gordon Moore, Robert Noyce, Arthur Rock, and Max Palevsky, the company makes integrated circuits, flash memory, embedded processors, motherboard chipsets, and other communications- and computing-related devices. Due to increased competition from Japanese semiconductor manufacturers in the early 80’s, Intel decided to focus on microprocessors. Intel