1. Inspired Innovation…
That's Changing the World.
Case Study 1: Intel Corporation 1968-1997
Present Asst.Prof. Viput Ongsakul
National Institute of Development Administration
(Flexible MBA 1/2557)
Microeconomics of Competitiveness
2. Founded in 1968 By
- Robert Noyce, Gordon Moore, Andy Grove
“Leaders have to act more quickly today. The
pressure comes much faster.”
1968s 1980s 1990s
Personal computer aging
Customer & Supplier Relationship
Intel & The internet
4. Company Market Share (%)
1. Hitachi 15.1
2. NEC 13.0
3. TI 10.8
4. Fujitsu 7.8
5. Toshiba (tie) 7.1
5. Mostek (tie) 7.1
6. Motorola 6.1
7. Mitsubishi 4.0
8. Intel 3.4
9. National 1.1
• Invest heavily in Manufacturing
• Worked closely with equipment manufacturers
• Strength in manufacturing, yields were high as 80%,
where in us it was around 60%
• Much faster at developing process technology and
ramping up production capacity
Japan Strategy in DRAMs
7. Intel in the
Two basic function
Own data &
Third class of
Sharing data and application center;
Network Computer (NC)
All competitors are taking advantage of the
opportunities provided by the internet,
What about our competition???
8. Business Environment
• Cooperation between industrial
sector such as IBM , Compaq
use intel processor.
• Accessing & transfer
technology to suppliers.
• Presence of high quality of
• –Information infrastructure.
• –Scientific and technological
• The embedded product need
semiconductor technology to
gain performance on their
• Japan is also able to export
quality DRAM as heavy in
vestment in manufacturing.
•Intel has more resource to invest in
•Design new and complex circuit for
9. Demographic :Why Silicon Valley?
Silicon chip innovators
10. Perhaps even more importantly, a range of
new technologies -- the microprocessor, the
laser, fiber-optics, and satellite -- appeared
in the late 1990s to be making the
American economy significantly more
productive than economists had thought
Federal Reserve Chairman Alan Greenspan
said in mid-1999
Drivers of competitiveness
11. Building & Upgrading
High Education Level and Skill
12. Creating and sustaining competitive
advantage in microprocessors
13. Key issue & Recommendation
High Investment in
machine & technology
• Reduce cost of manufacture.
• Value chain management.
• Technology transfer & Ramp-up.
Move Quickly to New
• Invest in R&D for new technology.
• Create demand in the market
• Value added to the product.
• Brand recognition; intel inside.
• Blue ocean Strategy (Innovation)
15. Team’s members
1. Kanruethai Boonyarit ID 5610224008
2. Chutikan Chaiyachart ID 5610224022
3. Julalak Jirasakpisarn ID 5610224024
4. Yodthorn Ratana anan ID 5610224033
5. Warunya Wongdanee ID 5610224039
6. Sowwaluk sangeamjit ID 5610224047
7. Wilailak Sangarreekul ID 5610224049
8. Thanakit Jarasboonpaisan ID 5610224077
9. Jakkraphon Siriphatthanakul ID 5610224081
10. Nuengruthai suksodkiew ID 5610224087