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 Industry : Semiconductor
 Founded : July 18, 1968
 Headquarters : Santa Clara, California , US
 Products : Bluetooth ...
Revolution in Evolution
JOURNEY TO BEING INDUSTRY LEADER
Strategic
decision in
1984 to exit
memory
As competitors
offered
substitute
products and
...
JOURNEY TO BEING INDUSTRY LEADER- RISE AND FALL
OF DRAM
Emphasis was on
product design, not
so much on
process
development...
JOURNEY TO BEING INDUSTRY LEADER- LESSONS
LEARNT !
Protect your
technological
innovations
Use current
profits to develop
c...
JOURNEY TO BEING INDUSTRY LEADER- WHAT
FAVOURED THE TRANSITION?
Intel’s successful transition
had more to do with unique
c...
Disadvantages with DRAM
What Intel did right with
Microprocessors?
Easier to Imitate
Difficult to patent
There is no micro...
Market Share
Intel gains the market share of 80% which seems more or less like a monopoly for Intel Corporation.
MARKET SH...
Intel Inside
Campaign
1991
Intel capturing
90% of world
computers
MARCOM
AWARD (1992),
GRAND
MARQUIS
WINNER
(1992)
Promote awareness of the final customers
Exploitation of reputation
Benchmark of microprocessor industry
Business to busin...
• Incentive-based cooperative advertising program
• Co-op fund
• 6% rebate on microprocessor purchases
• Reduce its offer ...
Intel Inside
Logo was
put
outside PC
Name
Selection
Trademarked Launch ‘INTEL INSIDE’
(1991)
INGREDIENT BRANDING MARKETING...
. . . . .
The ad announce the
arrival of the Intel
“Pentium” processor.
2007 – Classroom PC for children
2008 – Atom Processor
SWOT ANALYSIS (STRENGTHS & WEAKNESSES)
STRENGTHS WEAKNESSES
• Largest market share all over the world • Very technical str...
SWOT ANALYSIS (OPPORTUNITIES AND THREATS)
OPPORTUNITIES THREATS
•Market penetration and
product
Development
•Focus on cell...
DISCLAIMER
Intel case study
Intel case study
Intel case study
Intel case study
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Intel case study

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A study of Intel's growth and marketing strategy

Publicado en: Marketing
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Intel case study

  1. 1.  Industry : Semiconductor  Founded : July 18, 1968  Headquarters : Santa Clara, California , US  Products : Bluetooth Chipsets Flash memory Microprocessors Motherboard Chipsets Network interface controllers Solid State drivers Central Processing Units  First Product : Schottky Bipolar RAM INTRODUCTION
  2. 2. Revolution in Evolution
  3. 3. JOURNEY TO BEING INDUSTRY LEADER Strategic decision in 1984 to exit memory As competitors offered substitute products and overall market price decreased, Intel moved to new generations. Intel emphasis was on product design, not so much on process development or realizing efficiencies through manufacturing Intel’s internal selection environment, i.e., “the production rule”that favored microprocessor s, was more adaptively robust that top- down strategy Creating and sustaining competitive advantage in microprocessor s Diversification
  4. 4. JOURNEY TO BEING INDUSTRY LEADER- RISE AND FALL OF DRAM Emphasis was on product design, not so much on process development or realizing efficiencies through manufacturing . • Innovative Design • Price High in early life-cycle • Move Quickly to New generations Japanese Entered the Market • Lower interest rates • Sophisticated Demand • More efficient • Manufacturing strength of 80% yield Japanese Strategy • Closer relationships with equipment suppliers • Worked on process and equipment development Increased Complexity • Difficult to understand • Overreliance on product strategy • Lack of access to capital Wrong Strategy • Pushing product design through new features D R A M U N S U C C E S S F U L
  5. 5. JOURNEY TO BEING INDUSTRY LEADER- LESSONS LEARNT ! Protect your technological innovations Use current profits to develop complimentary capabilities. Competitive advantage is temporary Higher manufacturing capability win
  6. 6. JOURNEY TO BEING INDUSTRY LEADER- WHAT FAVOURED THE TRANSITION? Intel’s successful transition had more to do with unique circumstances (luck) than strategy (brains) Loss of market share in memory (precipitating ultimate exit) predated successful transition to microprocessors – no transforming strategy was articulated. Market for microprocessors developed quickly – little time delay between investment in exploration & sustaining rents (feeding the positive feedback loop) – thus limiting the need for sustained commitment to exploration investment Intel was well positioned with respect to process technology design capabilities to successfully explore microprocessor market
  7. 7. Disadvantages with DRAM What Intel did right with Microprocessors? Easier to Imitate Difficult to patent There is no microcode that can be protected There was little opportunity for a proprietary Standard Intel Branded the Microprocessor Kept the No. of Competitors down Changed Industry structure and dynamics Successful at counteracting threats to sustainability DRAM v/s MICROPROCESSORS
  8. 8. Market Share Intel gains the market share of 80% which seems more or less like a monopoly for Intel Corporation. MARKET SHARE
  9. 9. Intel Inside Campaign 1991 Intel capturing 90% of world computers MARCOM AWARD (1992), GRAND MARQUIS WINNER (1992)
  10. 10. Promote awareness of the final customers Exploitation of reputation Benchmark of microprocessor industry Business to business behavior Increase worldwide sales
  11. 11. • Incentive-based cooperative advertising program • Co-op fund • 6% rebate on microprocessor purchases • Reduce its offer in half if the PC makers add another logo Leapfrog strategy Pull strategy Derived demand Co-branding(IBM) Ingredient branding Differentiation Greater resources for R&D
  12. 12. Intel Inside Logo was put outside PC Name Selection Trademarked Launch ‘INTEL INSIDE’ (1991) INGREDIENT BRANDING MARKETING CAMPAIGN
  13. 13. . . . . .
  14. 14. The ad announce the arrival of the Intel “Pentium” processor. 2007 – Classroom PC for children 2008 – Atom Processor
  15. 15. SWOT ANALYSIS (STRENGTHS & WEAKNESSES) STRENGTHS WEAKNESSES • Largest market share all over the world • Very technical strategy in response to its competitors • A very strong brand value • Great steep in 2000 because of the emergence of AMD. • Idea of microprocessor, and it has continued that legacy • largest number global technology corporation. • Almost every Computer brand which makes computer uses Intel products in it • People are not familiar with any other brand apart from Intel. • Huge investment in Research and Development department
  16. 16. SWOT ANALYSIS (OPPORTUNITIES AND THREATS) OPPORTUNITIES THREATS •Market penetration and product Development •Focus on cellular or broadband portion. •Forward and backward Integration •Partnerships •Changes in consumer tastes •Change in currency value • Emergence of new and cheap • local companies.
  17. 17. DISCLAIMER

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