BBA Batch 2021-24

Fundamentals of B2B Marketing

Title
“Chips, Clicks & Connections: Decoding Intel’s Modern Supply Chain”

Submitted To:
Mr. Sridharan Narayan.

Submitted By:
Divyansh Shivhare (21021921002)
Garvit Gupta (21021921005)
Md Shaquib Neyaz (21021921014)
Piyush Aryan Singh (21021921019)
Rishabh Rautela (21021921023)
Introduction

Intel Corporation, founded in 1968 by Robert Noyce and Gordon Moore, stands as a
global technology leader renowned for its pioneering contributions in the
semiconductor industry. With its headquarters in Santa Clara, California, Intel has
consistently pushed the boundaries of innovation, playing a vital role in shaping the
digital landscape we inhabit today. The company's advancements in microprocessor
technology have revolutionized computing, enabling powerful devices, from personal
computers to data centers. Intel's commitment to research and development has
yielded a legacy of cutting-edge products, fostering not only technological progress
but also industry standards. As a cornerstone of the tech world, Intel continues to drive
innovation, ensuring its impact resonates across diverse sectors and paves the way
for a future powered by computing excellence.

Consumer benefit of the Product

Intel offers a wide range of products in the computing and technology sectors, primarily
centred around processors (CPUs), chipsets, and related technologies. The consumer
benefits of Intel products encompass several key values that cater to the needs and
demands of its customers:
● Faster performance: Intel processors are known for their speed and
performance, which can help consumers get more done in less time. They offer
the computational power required for various tasks, from everyday computing
to resource-intensive activities like gaming, video editing, and 3D rendering. For
example, the 12th generation of Intel® CoreTM processors can deliver up to
40% faster performance than previous generations.
● Better graphics: Intel processors also offer better graphics performance,
which can be important for gaming, video editing, and other graphics-intensive
tasks. The 12th generation Intel® CoreTM processors come with integrated
Iris® Xe graphics that can deliver up to 70% faster graphics performance than
previous generations.
● Longer battery life: Intel processors can help extend battery life, which is
important for mobile devices like laptops and tablets. The 12th generation of
Intel® CoreTM processors can deliver up to 20% longer battery life than
previous generations.
 ● Reliability and durability: Intel’s products are also known for their quality and
durability. They are rigorously tested to ensure that they meet the highest
standards of performance and reliability. This means that customers can rely
on Intel’s products to work consistently under varying workloads without any
issues.
● Compatibility and Ecosystem: Intel products are well-integrated with a wide
range of hardware and software, ensuring compatibility across various devices
and platforms. This compatibility helps customers build or upgrade systems
with ease and use the latest software without compatibility concerns.
● Support and Customer Service: Intel offers robust customer support,
including resources for troubleshooting, driver updates, technical assistance, or
any questions or issues they may have. This support helps consumers maintain
and optimise their systems for peak performance.

Intel’s Supply Chain Design

Fig 1: Intel’s Current Supply Chain Design

Intel is one of the world’s largest semiconductor companies and a significant player in
the global technology market. As a result, the company’s supply chain is complex and
highly efficient, relying on international partnerships, advanced planning and
optimization, automation and technology, quality control, and risk management.
Intel’s supply chain is divided into two main components:
● Manufacturing supply chain: The manufacturing supply chain produces
Intel’s microprocessors, motherboards, and other components.
● Product supply chain: The product supply chain is responsible for distributing
these products to customers.

Intel’s supply chain is divided into four layers:

1) Suppliers: At the supplier level, Intel has developed a network of global
partnerships to ensure it has access to the best components at the most
competitive prices. The company also works closely with its suppliers to ensure
that components are delivered on time and meet quality standards.
2) Manufacturing: At the manufacturing level, Intel’s supply chain relies heavily
on advanced planning and optimization. The company’s supply chain
professionals use sophisticated software systems to track production
schedules, inventory levels, and customer requirements. This allows Intel to
ensure that its production is aligned with customer needs and that materials are
available for production when needed.
3) Distribution: At the distribution level, Intel utilizes automation and technology
to streamline the shipping and delivery of its products. The company’s
warehouses are highly automated, with RFID and barcode scanners tracking
shipments and inventory levels. This allows Intel to deliver its products quickly
and accurately to customers.
4) Customers: Finally, at the customer level, Intel employs quality control and risk
management processes to ensure the quality of its products and reduce
potential risks. The company’s quality assurance team regularly inspects
products at all stages of the supply chain to ensure that they meet Intel’s
stringent standards. In addition, Intel employs risk management strategies to
minimize the impact of possible disruptions in the supply chain.

Intel's supply chain strategy revolves around four key pillars:

Globalization: Intel has established a worldwide supplier network for quality
components at competitive prices. Collaboration with suppliers ensures timely
and quality component delivery, reducing costs and enhancing profits.
Advanced Planning and Optimization: By employing advanced software
systems, Intel monitors production schedules, inventory, and customer needs.
This ensures alignment between production and demand, while analytics
identify improvements and bottlenecks.
Automation and Technology: Intel employs automation, RFID, and barcode
technology in its warehouses for efficient shipping and inventory tracking.
 Predictive analytics anticipate customer requirements, optimizing supply chain
operations.
Quality Control and Risk Management: A stringent quality control process
and regular inspections at all supply chain stages uphold Intel's high standards.
Risk management strategies mitigate potential disruptions, safeguarding the
supply chain's stability.

Intel’s cost-efficiency in supply chain

Intel, a major semiconductor chip maker, aimed to cut supply chain costs for its low-
cost "Atom" chip, which had a disproportionately high $5.50 cost per unit for a $20
chip. To address this, Intel focused on reducing inventory levels, as there were no
options to compromise on product quality. They adopted a unique approach of
transitioning to a make-to-order strategy, which involved iterative improvements and
initiatives such as shortening chip assembly time, implementing formal planning
processes, and adopting vendor-managed inventory. Through these efforts, Intel
significantly reduced the order cycle time from nine weeks to two weeks, leading to a
supply chain cost reduction of over $4 per unit for the Atom chip. This move proved
more successful and sustainable compared to the initial costly scenario.

Need for a new market for a healthier PLC

With the rapid pace of innovation in laptops and PCs, the technology landscape has
been consistently evolving, demanding frequent upgrades and newer models of CPUs.
As a result, the lifecycle of older CPU models has shortened, necessitating the
identification of new customer segments to ensure their continued relevance. In
response to this dynamic environment, Intel should recognize the opportunity to tap
into the gaming and other segments as a strategic approach to extending the lifecycle
of older CPUs.

To effectively target this new customer segment, Intel should strategically design a
multi-channel supply chain model that aligns with the specific needs and preferences
of gamers. This multi-channel approach offers several key advantages. Firstly, it
provides direct access to the identified customer segments through dedicated online
stores, authorized retailers, and participation in gaming conventions and events. This
level of engagement ensures that Intel's legacy CPU editions reach their intended
audience efficiently and seamlessly.
Revised supply chain design of Intel

Designing a new supply chain model for Intel targeting gamers requires a
comprehensive approach that addresses the specific needs and preferences of this
customer segment. Gamers demand high-performance components and seamless
availability to enhance their gaming experience. Here's a multi-channel supply chain
model that caters to gamers' needs:

1. Product Development:
● Collaborate with game developers to optimize hardware for popular game titles,
ensuring superior gaming performance.
● Develop specialized gaming processors and graphics cards with features that
cater to gamers' requirements, such as enhanced graphics, low latency, and
overclocking capabilities.
2. Multi-Channel Distribution:
● Online Store: Establish a dedicated online store for gamers to purchase Intel
gaming components directly. This ensures easy access to the latest products
and exclusive offers.
● Authorized Retailers: Partner with select retailers known for catering to gamers'
needs. These retailers should have physical stores as well as strong online
presence.
● Gaming Conventions and Events: Participate in gaming expos, conventions,
and events to showcase products, offer hands-on experiences, and directly
interact with the gaming community.

3. Demand Forecasting and Analytics:

Implement advanced data analytics to predict gaming component demand based on
factors like game releases, hardware trends, and seasonal patterns.
Leverage machine learning algorithms to refine demand forecasting and optimize
inventory levels to prevent stockouts and excess inventory.

4. Customization Options:
● Offer customization options for gaming components, allowing gamers to select
specifications based on their preferences and budget.
● Provide pre-built bundles optimized for specific gaming experiences, like high
FPS gaming, VR gaming, or content creation.

5. Direct Engagement with Gamers:

● Establish a strong online presence through social media, forums, and gaming
communities. Engage directly with gamers to understand their preferences,
concerns, and feedback.
● Host live streams, Q&A sessions, and tech demos to showcase the benefits of
Intel's gaming products.

6. Supply Chain Flexibility:

● Design a flexible supply chain to quickly adapt to changes in demand and
market trends. This includes the ability to ramp up production for anticipated
high-demand periods (e.g., game releases, holidays).
Example of a Process Innovation
Concept: Releasing Legacy CPU Editions for Gaming Companies and Collectors
Intel could introduce a process innovation by repurposing older generation CPUs that
are no longer part of the mainstream product lineup. These legacy CPU editions would
be marketed specifically to gaming companies and hobby collectors who value
historical technology, nostalgia, and unique hardware for various purposes.

Implementation of this Innovation:

1.Identification and Refurbishment: Intel would identify older generation CPUs that
are no longer actively produced but still possess value in terms of performance or
historical significance. These CPUs could be refurbished to ensure their functionality
and reliability.

2. Limited Edition Releases: Intel would package these legacy CPUs as limited-
edition collector's items, each with a unique serial number and a certificate of
authenticity. The CPUs could be paired with commemorative packaging and
documentation that highlights their historical relevance.

3. Targeted Market:
● Gaming Companies: Intel could offer these legacy CPU editions to gaming
companies for use in special edition gaming systems, retro-themed gaming
events, or even for developing retro-style games that require hardware
emulation of the past.
● Hobby Collectors: Intel could leverage online platforms, auctions, and
partnerships with collector communities to make these CPUs available to
enthusiasts who collect vintage hardware.

4.Collaboration and Customization:

Gaming Companies: Intel could collaborate with game developers to create unique
experiences or challenges related to the older hardware. For instance, games that are
optimized to run on older CPUs, creating a sense of nostalgia and novelty.
Hobby Collectors: Intel could offer customization options, allowing collectors to select
specific CPUs from Intel's historical lineup or even request specific model variants.
Benefits of this Innovation for Intel:

1. Additional Revenue Stream: Selling limited edition legacy CPUs could create a
new revenue stream for Intel, generating income from older technology that may have
been considered obsolete.

2. Optimized Asset Utilization: By repurposing older CPUs that may otherwise

remain unused, Intel maximizes the utility of its existing resources and inventory.

3. Positive Brand Perception: This initiative could enhance Intel's brand image by
showcasing its commitment to technology heritage, innovation, and engaging with
niche communities.

4. Engagement with Niche Markets: Intel can establish stronger connections with
gaming companies and hobby collectors, fostering goodwill and customer loyalty
within these specialized segments.

5. Environmental Considerations: Repurposing and refurbishing older CPUs aligns

with sustainability goals by reducing electronic waste and promoting responsible
technology consumption.

Thus, incorporating this process innovation could effectively turn the lifecycle of older
CPUs into a unique and value-generating opportunity, benefiting both Intel and its
target audiences.
Brief business strategy to ensure continuity of new innovation over the next 3
years, given the rapidly changing global market and environment:

1. Market Research and Trend Monitoring:

● Regularly monitor trends in gaming, collector communities, and historical
technology interests.
● Keep an eye on emerging technologies that could impact the relevance and
demand for older CPUs.

2. Diversification of Offerings:
● Introduce a variety of limited-edition legacy CPUs, catering to different levels of
collectors and enthusiasts.
● Consider offering themed bundles or collaborations with popular games or
franchises to attract a wider audience.

3. Collaborative Partnerships:
● Strengthen relationships with gaming companies, developers, and collector
communities through ongoing collaboration and feedback.
● Explore partnerships with gaming events, conventions, and online platforms to
showcase and distribute the legacy CPU editions.

4. Digital Engagement:
● Leverage social media, online forums, and platforms to engage with the target
audience.
● Regularly share content related to the historical significance of the CPUs,
educational materials, and updates on upcoming releases.

5. Limited Production Runs:

● Maintain the exclusivity of the legacy CPU editions by producing limited
quantities of each model.
● Utilize pre-order systems to gauge demand and avoid overproduction.

6. Sustainability Focus:
● Highlight Intel's commitment to sustainability by emphasizing the environmental
benefits of repurposing and refurbishing older CPUs.
● Consider offering recycling or trade-in programs for older hardware to promote
responsible technology consumption.
7. Long-Term Vision:
● Align the legacy CPU editions initiative with Intel's overall corporate vision and
values, ensuring its integration into the company's long-term strategy.

Thus, by following this business strategy, Intel can continue to innovate and sustain
its legacy CPU editions initiative over the next three years, adapting to changing
market conditions, engaging with its target audiences, and generating value from
historical technology.

Conclusion
Intel's remarkable journey from its inception in 1968 to its current status as a global
technology leader is a testament to its commitment to innovation and excellence. The
consumer benefits of Intel's products, including faster performance, better graphics,
longer battery life, reliability, compatibility, and strong customer support, underscore
its dedication to meeting the diverse needs of its customers.

Intel's intricate supply chain, characterised by global partnerships, advanced

technology, and rigorous quality control, reflects its position as a major player in the
semiconductor industry. The company's supply chain strategy, built on pillars of
globalisation, optimisation, automation, and quality control, exemplifies its
commitment to efficiency and reliability.

Moreover, Intel's cost-saving efforts, particularly its successful transition to a make-to-

order strategy for the Atom chip, demonstrate its adaptability and resilience in a
competitive market.

Recognising the need for new markets to extend the lifecycle of older CPU models,
Intel's strategic shift towards the gaming segment is a proactive move. A multi-channel
supply chain tailored to gamers' needs ensures that Intel's legacy CPU editions find
their niche audience effectively.

Overall, Intel's history of innovation, supply chain excellence, and forward-thinking

strategy position it for continued success and relevance in the ever-evolving tech
landscape.

Continuing the Intel Supply Chain Legacy, we have suggested a new customer segment for
their existing product that, if implemented, would add to the company's supply chain
effectiveness and responsiveness.