Intel - Group 2

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STRATEGIES ADOPTED BY INTEL CORPORATION AS A B2B FIRM

Submitted By: Submitted To:Group 2 (Marketing B) Prof. V. SekharHarpreet Singh 08PG022Nitin Malik 08PG039Rochak Khanna 08PG116Saurav Rawat 08PG126Somyata Krishna 08PG133Suchita Khanna 08PG054

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ABOUT INTEL:

Intel is the world's largest semiconductor chip maker, based on revenue. The company is theinventor of the x86 series of microprocessors, the processors found in most personal computers.Intel was founded on July 18, 1968, as Integrated Electronics Corporation and is based in SantaClara, California, USA. The corporation was founded by Gordon E. Moore and Robert Noyce.Paul S. Otellini is the present CEO of Intel Corporation. Originally known primarily to engineersand technologists, Intel's successful "Intel Inside" advertising campaign of the 1990s made it andits Pentium processor household names.Intel was an early developer of SRAM and DRAM memory chips, and this represented themajority of its business until the early 1980s. While Intel created the first commercialmicroprocessor chip in 1971, it was not until the success of the personal computer (PC) that thisbecame their primary business. During the 1990s, Intel invested heavily in new microprocessordesigns fostering the rapid growth of the PC industry. During this period Intel became thedominant supplier of microprocessors for PCs, and was known for aggressive and sometimescontroversial tactics in defense of its market position, particularly against AMD, as well as astruggle with Microsoft for control over the direction of the PC industry. The 2009 rankings of the world's 100 most powerful brands published by Millward Brown Optimor showed thecompany's brand value rising 4 places

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from number 27 to number 23. Intel has grown throughseveral distinct phases. At its founding, Intel was distinguished simply by its ability to makesemiconductors, and its primary products were static random access memory (SRAM) chips.Intel's business grew during the 1970s as it expanded and improved its manufacturing processesand produced a wider range of products, still dominated by various memory devices.While Intel created the first microprocessor (Intel 4004) in 1971 and one of the firstmicrocomputers in 1972, by the early 1980s its business was dominated by dynamic randomaccess memory chips. However, increased competition from Japanese semiconductormanufacturers had, by 1983, dramatically reduced the profitability of this market, and the suddensuccess of the IBM personal computer convinced then-CEO Grove to shift the company's focusto microprocessors, and to change fundamental aspects of that business model. By the end of the1980s this decision had proven successful. Buoyed by its fortuitous position as microprocessorsupplier to IBM and its competitors within the rapidly growing personal computer market, Intel

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embarked on a 10-year period of unprecedented growth as the primary (and most profitable)hardware supplier to the PC industry. By the end of the 1990s, its line of Pentium processors hadbecome a household name.

CORE COMPETENCY:

Intel Corporation has three elements of its core competency:

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Underlying process technology

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Being able to manufacture in high volume

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Doing sophisticated high-volume designThis has helped the firm to achieve high brand loyalty and speed to market (ability to bring anew product in the market much faster than competitors)

IMPORTANT STRATEGIC ALLIANCES:

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Emulex

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technology initiative for processors

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Cisco

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networking expertise

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Dreamworks

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for created high end 3D animations

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Oracle

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health care products

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Nokia

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innovations in mobile computing devices, combine the performance of powerfulcomputers with high-bandwidth mobile broadband communications and ubiquitousInternet connectivity.

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Close partnerships with DELL, HP and Gateway

CLOSE COMPETITORS:

The only major competitor in the processor market is AMD (Advanced Micro Devices). Othertop semiconductor companies include AMD, Samsung, Texas Instruments, Toshiba andSTMicroelectronics.Competitors in PC chip sets include VIA Technologies, SiS, and Nvidia. Intel's competitors innetworking include Freescale, Infineon, Broadcom and Marvell Technology Group.

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