1. Moore’s Law
The number of Transistors Per Chip
Double Every 18 Months

2. The Branding of

3. History
Increasing
competition from
Japanese firms
1968
Intel was Found
Focus on DRAM
1971
1980s
Created First
Microprocessor
Focus on
Microprocessor
8088, 80286, x386
The success of
IBMs PC
1983
Became No.1
In the Industry

4. Five-Force
Analysis
The success of
IBMs PC
1983
Became No.1
In the Industry
What is
Microprocessor
Industry?

5. Five-Force
Analysis
Silicon
Other material provider
Bargaining
Power of
Suppliers

6. Five-Force
Analysis
Unique
Fundamental
Threat of
Substitute

7. Five-Force
Analysis
Economies of scale
Capital Requirement
Changing Environment
Threat of New
Entrants

8. Five-Force
Analysis
Purchase in large volume
Products are standard
Buyers integrate backward
Bargaining
Power of
Buyers

9. Five-Force
Analysis
Competitors:
AMD, Motorola, VIA,
3COM, NEC
Competitive
Rivalry
Within
Industry

10. Five-Force
Analysis
Bargaining
Power of
Suppliers
Threat of
New Entrants
Competitive
Rivalry
Within
Industry
Threat of
Substitute
Bargaining
Power of
Buyers

11. Competitive
Rivalry
Within
Industry
AMD 386
The success of
IBMs PC
1983
1991
Bargaining
Power of
Buyers

12. Push & Pull
Strategy

13. 30%-50%
rebates of
advertising
fees
Producer
Marketing
Activities
CoMarketing
Campaign
Demand
Trader/
Processing
Company
Marketing
Activities
Demand
User/ Final
Customer
Push & Pull
Strategy

14. Producer
Marketing
Direct
Activities
Marketing
Demand
Trader/
Processing
Company
Demand
User/ Final
Customer
Push & Pull
Strategy

15. Product
Price
Place
Promotion

16. Product
Price
Place
Promotion
Heavy R&D investment
Continuously introduce new product

17. Product
Price
Place
Promotion
Premium Price

18. Product
Price
Place
Promotion
Distributors
Sales Office
Web-based

19. Product
Price
Place
Promotion
125 million US dollars
Printed Ads, TV commercial, billboards

21. Stock Price
48% growth rate
Net Revenue
120%
Awareness
70%
Became No.6
World Brand
Results

23. Changing Environment
Never forget Moore’s Law
What’s Happening?

24. Changing Environment
Never forget Moore’s Law
Low Cost PCs
2000
Apple iPhone
2006
2007
Apple iPad
2009
2010

25. Changing Environment
Never forget Moore’s Law
Low Cost PCs
2000
Apple iPhone
2006
2007
Apple iPad
2009
2010
2013

26. Strength
Weakness
Opportunity
Threat

27. Strength
 Market Leader: 70%-80% market
Weakness
share in PC microprocessor
 Maintains brand equity
 R&D capabilities
Opportunity
Threat

28. Strength
 Late in the portable devices
markets
 Accused to use its market
dominance to unfairly stifle
competition
 Higher Prices
Weakness
Opportunity
Threat

29. Strength
 Compete on the next
generation product.
 Offering more diversification
with their existing product
 Backward or forward
integration
Weakness
Opportunity
Threat

30. Strength
 Changing of the dynamic
environment
 a number of ARM-based players are
expected to enter the PC
microprocessor market.
 Change of consumers tastes
 The increasing demand for lowerpriced PCs from emerging markets
Weakness
Opportunity
Threat

31. Problems
• Lack of focus on the primary Intel brand
• High frequency of newly released chips
• OEMs were unhappy with having too
constantly upgrade their hardware and
software to match the latest Intel chips

32. Branding
Focus on Main Products
Emotional Connection
Multiple Online Media
Tools

36. Moore’s Law
Branding
Conclusion

37. Q&A