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Abhinay Bandaru
NIT Surat
 Founders: Gordon Moore, Robert Noyce
 Founded: July 18, 1968
 Headquarters: Santa Clara, California
 Largest Semi-Conductor Chipmaker based
on Revenue
The Interface Level
Market Segment
Intel
Facilitators
Buyers
Market
Segments
Suppliers
Competitors
- AMD
- Nvidia
- Texas Instruments Inc.
Market Share
PC => 79.3%
Mobile PC => 84.4 %
Product Mix
&
Industrial Marketing
Environment
Product Mix of INTEL
Processor Mobile Devices
Networking
Products
Intel-Atom-
Processor-Z3570
Value
Processor
Intel Core
Chipsets
Controllers
Adapters
Boards
Galileo
Edison
Intel-Atom-
Processor-Z3736F
Intel-Atom-
Processor-Z3530
Intel-Atom-
Processor-Z3736G
Intel Xeon
Intel Quark
Pentium
Celeron
Switches
Optics
Cables
Workstation
Server
Server
Chipset
PC Chipset
Server Products
RAID
Server board
I/O device
Outline
About Intel Corporation
Initial dominance and decline in DRAMs
Success in microprocessors
Becoming the builder of the Internet
0
1
2
3
Conclusions4
Department of Business Administration
College ofManagement
Intel in
DRAM Market
Source: Intel Case Exhibit 4 Volume Trends in DRAMs
Intel first
introduced 1K
DRAM (Lead)
TI and Mostek
had better design
and low cost.
Intel lost a full
generation to
Japanese (16K
vs. 64K)
Intel faced strong
price competition
from Japanese
Intel introduced
1-megabitDRAM
but has lost the
market
Intel exited DRAM market.1985
Intel produced the world’s first 1-kilobit DRAM, 1103 (Goldilocks strategy).1970
1 Initial dominance and decline in DRAMs
Henderson and Clark (1990)
Models of Innovation
Teece (1986)
Who profits from innovations?
As first mover, why failed in the end?
1. From radical innovation to incremental innovation…
2. Appropriability and Complementary…
Department of Business Administration
College ofManagement
“DRAM gave us fame,
but EPROM gave us riches.”
“We had microprocessors.”
---Andy Grove
Department of Business Administration
College ofManagement
Intel in
Microprocessors
2 Success in microprocessors
1971: Intel 4004 1972: Intel 8008 1974: Intel 808 1978: Intel 8086 y 8088
1980 “Project Crush” + Design wins (Intel + IBM)
- IBM open standard
- Success in format war
- Being a free rider by design wins
1983 License control
- Restrict licenses to four company
- More design wins and more revenue
- Set up the industry standard
Platform building: x86
1982: Intel 80286
Second-source strategy
1985: Intel 80386 1989: Intel 80486
Sole-source strategy: becoming proprietary
2 Success in microprocessors
TomDunlap,
senior vice
president
and general
counsel
Intel vs. AMD
“AMD’s products were big, ugly, and late.” (mid-1980)
“By the Pentium generation, AMD couldn’t get any trade secrets and couldn’t
copy our microcode, so our products developed quite differently.” (1995)
1991: AMD AMx86 1996: AMD K5 1996: AMD K6 y AMDK6-2 1999: AMD AthlonK7
(Classic y Thunderbird)
1993: Intel Pentium 1995: Intel Pentium Pro 1997: Intel Pentium II 1999: Intel Pentium III
Industrial Marketing
Strategies
Intel Inside Campaign (1991)
“To educate both the retail sales associates and the consumers about the
value of Intel microprocessors, and to explain to them the differences
between the microprocessors.”
Campaign Highlights:
Association with 200 OEM’s for Brand Recognition.
1st Trademark in the Electric Component Industry.
“Intel Inside” aka Quality & Reliable product for Buyers.
5 years later:
Intel’s link with World Market Leaders : COMPAQ, IBM !
Current Scenario:
 Brand value quantified at US$35 billion (Initial investment US$3.4
billion)
1990 Success marketing: the “Red X” campaign specifically against AMD, and the
“Intel inside” end-user branding and advertising program to OEMs.
2 Success in microprocessors
Dennis Carter,
head of
corporate
marketing
Pentium bug: good response to product flaw and effective end user promotion
Architectural competition: RISC vs. CISC (Intel)
1994
1990-1995
2 Success in microprocessors
DRAMs Microprocessors EPROMs
Patent ProtectionLaw V V
TradeSecrets V V V
Copyrights V
Trademarks V
Chip ProtectionAct V
Why has Intel been more successful inmicroprocessors?
Exhibit 6 Comparative Intellectual Property Considerations
Block
Run
Successful
Protecting
Strategies
Afuah (2003) Team Up
Intel+IBM
Design Wins
Intel sole-source
Block
Wintel PC + Intel inside
Fight against AMD
Team Up
Intel+HP
Strong
Proprietary
Invention of the
microprocessor
Emergence of Intel’s architecture
as the dominant design for PCs
Discontinuity from
RISC technology
Source: lecture slide
Intel in
Internet Market
The PC was at the center of computing during
the 1990s, but if you look at the next decade, it is
the Internet. The PC is still very important in the
Internet era, but there are lots of other things that
are important as well. People are going to access
the Net off their cell phones, and more cell
phones are sold today than PCs. Networking is
becoming more important, whether it’s in the
home, small business, or enterprise. If you want
to be involved in this new era, you have to look
for the new growth opportunities. That’s what we
are trying to do.
---Craig Barrett (1999)
Becoming the builder of the Internet3
Intel invested a large amount in such a short time, but not
matured enough for the new competition and new business.
However, it could have been worse if Intel did do so.
1. There was a recession and decreasing on world PC
microprocessor revenue (Exhibit 8).
2. The competition in new business was even stronger than
its core business (see Exhibit 10b).
3. Internally, Intel had a series of implementation errors
(p.15).
2001-2002 Intel shut down businesses ranging from Web hosting, network switching,
and network appliances to Intel consumer products. Barrett introduced a
back-to-basics program to achieve operational excellence.
Why? 新官上任三把火
Spring 1968 Robert Noyce and Gordon Moore left Fairchild Semiconductor to start
Intel with the venture capitalist Arthur Rock. Later Andy Grove joined
with a group of team from Fairchild.
Robert Noyce
1927-1990
Gordon Moore
1929-
Arthur Rock
1926-
Andy Grove
1936-
0 About Intel Corporation
1970s
DRAM
1980s
Microprocessor
Late-1990s
Internet
Becoming the builder of the Internet3
Microprocessor32-bit Celeron (1999)
32-bit Pentium (1997)
32-bit Xeon (1998)
64-bit Itanium (2001)
2002 Intel successfully pulled a generation ahead of AMD.
Intel had roughly 89% market segment share in mobile CPUs.
Do you think that Intel should maintain these strategy moves
in 2003? Yes, because the strategic position was right to the
future market and demand. The lost was temporary dueto
ill-management and unfocused diversification strategy.
Value-based lower prices
for higher volumes Mainstream High performance
32-bit Celeron
(1999)
32-bit Pentium
(1997)
32-bit Xeon
(1998)
64-bit Itanium
(2001)
Low-end consumer PC Mass PC
Low- and mid-range
corporate serverand
workstation
Corporate server
Client part Network connectivity Server/data farm
Convergence of computing and communications is the major
growth driver of the Internet, and we are in both.” – Craig Barrett
Conclusions5
Technology Strategies Maidique and Patch (1978)
DRAMs Microprocessors Internet
First-to-Market or
Leader Strategy
Intel Lead Intel Lead Protecting PC and
server platforms
Second-to-Market
or Fast Follower
Strategy Beat by Japanese Block
Establishing new
standards in
network and
communications
(WiFi)
Late-to-Market or
Cost Minimization
Strategy
No complimentary
assets Run and block ?
Market
Segmentation or
Specialist Strategy
Lost the market
Intel got the lead for
segmentation
(brand value)
?
Macro-Environment
6 Major Factors affecting Intel
Economic Factors
Product demand
• Customer product needs
• Competitors pricing
• Tax rates
• Standard of living
• Market acceptance
Ecological Factors
Design semi-conductor keeping environment in mind
Responsible operations(supply chain)
Engaging employees to reduce impact
Recycling- Follows WEEE directive
Chip life extended up to 10 years
Physical Factors
 Obtaining the resources or products
 Subject to theft, loss or misuse of personal data and
components
 Risks of global operations
 Employees: Hardware and Software Engineers
Technological Factors
 Complex process of producing integrated circuits
 Response to technological and market developments
 Third party threats
 Process of Transition
Demographic Factors
Increasing
population
Age
discrimination
Booming IT
sector
Government Regulations on I.T. and
Hardware equipment
Conclusion:
Product, purchaser gets in exchange for his /her money
It can be offered to a market for attention, acquisition, use or
consumption and that might satisfy a want or need.
A product is a bundle of utilities consisting of various product features
and accompanying services.
So Intel also using the product knowledge proper and changing the
features and product according to the advance technology
requirement.

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Intel Marketing Strategies

  • 2.  Founders: Gordon Moore, Robert Noyce  Founded: July 18, 1968  Headquarters: Santa Clara, California  Largest Semi-Conductor Chipmaker based on Revenue
  • 4. Market Segment Intel Facilitators Buyers Market Segments Suppliers Competitors - AMD - Nvidia - Texas Instruments Inc. Market Share PC => 79.3% Mobile PC => 84.4 %
  • 6. Product Mix of INTEL Processor Mobile Devices Networking Products Intel-Atom- Processor-Z3570 Value Processor Intel Core Chipsets Controllers Adapters Boards Galileo Edison Intel-Atom- Processor-Z3736F Intel-Atom- Processor-Z3530 Intel-Atom- Processor-Z3736G Intel Xeon Intel Quark Pentium Celeron Switches Optics Cables Workstation Server Server Chipset PC Chipset Server Products RAID Server board I/O device
  • 7. Outline About Intel Corporation Initial dominance and decline in DRAMs Success in microprocessors Becoming the builder of the Internet 0 1 2 3 Conclusions4
  • 8. Department of Business Administration College ofManagement Intel in DRAM Market
  • 9. Source: Intel Case Exhibit 4 Volume Trends in DRAMs Intel first introduced 1K DRAM (Lead) TI and Mostek had better design and low cost. Intel lost a full generation to Japanese (16K vs. 64K) Intel faced strong price competition from Japanese Intel introduced 1-megabitDRAM but has lost the market Intel exited DRAM market.1985 Intel produced the world’s first 1-kilobit DRAM, 1103 (Goldilocks strategy).1970 1 Initial dominance and decline in DRAMs
  • 10. Henderson and Clark (1990) Models of Innovation Teece (1986) Who profits from innovations? As first mover, why failed in the end? 1. From radical innovation to incremental innovation… 2. Appropriability and Complementary…
  • 11. Department of Business Administration College ofManagement “DRAM gave us fame, but EPROM gave us riches.” “We had microprocessors.” ---Andy Grove
  • 12. Department of Business Administration College ofManagement Intel in Microprocessors
  • 13. 2 Success in microprocessors 1971: Intel 4004 1972: Intel 8008 1974: Intel 808 1978: Intel 8086 y 8088 1980 “Project Crush” + Design wins (Intel + IBM) - IBM open standard - Success in format war - Being a free rider by design wins 1983 License control - Restrict licenses to four company - More design wins and more revenue - Set up the industry standard Platform building: x86 1982: Intel 80286 Second-source strategy 1985: Intel 80386 1989: Intel 80486 Sole-source strategy: becoming proprietary
  • 14. 2 Success in microprocessors TomDunlap, senior vice president and general counsel Intel vs. AMD “AMD’s products were big, ugly, and late.” (mid-1980) “By the Pentium generation, AMD couldn’t get any trade secrets and couldn’t copy our microcode, so our products developed quite differently.” (1995) 1991: AMD AMx86 1996: AMD K5 1996: AMD K6 y AMDK6-2 1999: AMD AthlonK7 (Classic y Thunderbird) 1993: Intel Pentium 1995: Intel Pentium Pro 1997: Intel Pentium II 1999: Intel Pentium III
  • 16.
  • 17. Intel Inside Campaign (1991) “To educate both the retail sales associates and the consumers about the value of Intel microprocessors, and to explain to them the differences between the microprocessors.” Campaign Highlights: Association with 200 OEM’s for Brand Recognition. 1st Trademark in the Electric Component Industry. “Intel Inside” aka Quality & Reliable product for Buyers. 5 years later: Intel’s link with World Market Leaders : COMPAQ, IBM ! Current Scenario:  Brand value quantified at US$35 billion (Initial investment US$3.4 billion)
  • 18. 1990 Success marketing: the “Red X” campaign specifically against AMD, and the “Intel inside” end-user branding and advertising program to OEMs. 2 Success in microprocessors Dennis Carter, head of corporate marketing Pentium bug: good response to product flaw and effective end user promotion Architectural competition: RISC vs. CISC (Intel) 1994 1990-1995
  • 19. 2 Success in microprocessors DRAMs Microprocessors EPROMs Patent ProtectionLaw V V TradeSecrets V V V Copyrights V Trademarks V Chip ProtectionAct V Why has Intel been more successful inmicroprocessors? Exhibit 6 Comparative Intellectual Property Considerations Block Run Successful Protecting Strategies Afuah (2003) Team Up Intel+IBM Design Wins Intel sole-source Block Wintel PC + Intel inside Fight against AMD Team Up Intel+HP Strong Proprietary Invention of the microprocessor Emergence of Intel’s architecture as the dominant design for PCs Discontinuity from RISC technology Source: lecture slide
  • 21. The PC was at the center of computing during the 1990s, but if you look at the next decade, it is the Internet. The PC is still very important in the Internet era, but there are lots of other things that are important as well. People are going to access the Net off their cell phones, and more cell phones are sold today than PCs. Networking is becoming more important, whether it’s in the home, small business, or enterprise. If you want to be involved in this new era, you have to look for the new growth opportunities. That’s what we are trying to do. ---Craig Barrett (1999)
  • 22. Becoming the builder of the Internet3 Intel invested a large amount in such a short time, but not matured enough for the new competition and new business. However, it could have been worse if Intel did do so. 1. There was a recession and decreasing on world PC microprocessor revenue (Exhibit 8). 2. The competition in new business was even stronger than its core business (see Exhibit 10b). 3. Internally, Intel had a series of implementation errors (p.15). 2001-2002 Intel shut down businesses ranging from Web hosting, network switching, and network appliances to Intel consumer products. Barrett introduced a back-to-basics program to achieve operational excellence. Why? 新官上任三把火
  • 23. Spring 1968 Robert Noyce and Gordon Moore left Fairchild Semiconductor to start Intel with the venture capitalist Arthur Rock. Later Andy Grove joined with a group of team from Fairchild. Robert Noyce 1927-1990 Gordon Moore 1929- Arthur Rock 1926- Andy Grove 1936- 0 About Intel Corporation 1970s DRAM 1980s Microprocessor Late-1990s Internet
  • 24. Becoming the builder of the Internet3 Microprocessor32-bit Celeron (1999) 32-bit Pentium (1997) 32-bit Xeon (1998) 64-bit Itanium (2001) 2002 Intel successfully pulled a generation ahead of AMD. Intel had roughly 89% market segment share in mobile CPUs. Do you think that Intel should maintain these strategy moves in 2003? Yes, because the strategic position was right to the future market and demand. The lost was temporary dueto ill-management and unfocused diversification strategy. Value-based lower prices for higher volumes Mainstream High performance 32-bit Celeron (1999) 32-bit Pentium (1997) 32-bit Xeon (1998) 64-bit Itanium (2001) Low-end consumer PC Mass PC Low- and mid-range corporate serverand workstation Corporate server Client part Network connectivity Server/data farm Convergence of computing and communications is the major growth driver of the Internet, and we are in both.” – Craig Barrett
  • 25. Conclusions5 Technology Strategies Maidique and Patch (1978) DRAMs Microprocessors Internet First-to-Market or Leader Strategy Intel Lead Intel Lead Protecting PC and server platforms Second-to-Market or Fast Follower Strategy Beat by Japanese Block Establishing new standards in network and communications (WiFi) Late-to-Market or Cost Minimization Strategy No complimentary assets Run and block ? Market Segmentation or Specialist Strategy Lost the market Intel got the lead for segmentation (brand value) ?
  • 27. 6 Major Factors affecting Intel
  • 28. Economic Factors Product demand • Customer product needs • Competitors pricing • Tax rates • Standard of living • Market acceptance
  • 29. Ecological Factors Design semi-conductor keeping environment in mind Responsible operations(supply chain) Engaging employees to reduce impact Recycling- Follows WEEE directive Chip life extended up to 10 years
  • 30. Physical Factors  Obtaining the resources or products  Subject to theft, loss or misuse of personal data and components  Risks of global operations  Employees: Hardware and Software Engineers
  • 31. Technological Factors  Complex process of producing integrated circuits  Response to technological and market developments  Third party threats  Process of Transition
  • 33. Government Regulations on I.T. and Hardware equipment
  • 34. Conclusion: Product, purchaser gets in exchange for his /her money It can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need. A product is a bundle of utilities consisting of various product features and accompanying services. So Intel also using the product knowledge proper and changing the features and product according to the advance technology requirement.

Hinweis der Redaktion

  1. Good Morning ! Everyone In today’s competitive market, if a firm wants to achieve success and survive, then Environment Scanning is one of the important activity that it needs to do. Thereby We will portray the industrial environment of Intel Corp.
  2. The interface level involves those key participants who immediately interface with an industrial firm to support in production, distribution and purchases of a firms goods and services. There are 4 key participants – The Buyers,Suppliers,Faciltators and market segment
  3. http://en.wikipedia.org/wiki/Intel
  4. Wee directive needs to be followed In