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Anushree Mishra 27

Juhita Rajyaguru 35
Rashmi Sharma 49
Roshni Shetty 50
Intels DRAM Business (1969 - 1984)
Strong capabilities in product design and 1
st

mover advantage
Edge in process technology
Achieved economies of scale with process
optimisation and improvement


FUJITSU
In 1979, it imitated Intel
and came up with better
products
It achieved manufacturing
cost advantage

Intel upgraded its products in response





In 1984, Intel designed 1M DRAM, however it
had to take the decision of halting its further
development


FUJITSU and HITACHI
In 1982 Intels 64K DRAM lost market share to
Fujitsu and Hitachis 256K products
By early 1990s, Japanese companies captured
half of the world market

M
Intel vs Motorola
In 1980, Intel initiated PROJECT CRUSH
This showed economies of scope and fierce
retaliation to combat imitation
Intel vs AMD
Retaliated using intellectual property
protection
However it was not very successful and in
1995 AMD got rights to Intels microcode
Intel vs AMD, Texas, Cyrix
These could produce microprocessors
compatible with MS-DOS and priced them
below Intel
To counter attack, Intel
1. Achieved advantage in performance
2. Increased volumes
3. Produced cheaper microprocessors
It also launched Intel Inside campaign
Speed & cost advantages
Workstation computing
Motorola 88000 RISC processor
Threat from
RISC-Reduced
Instruction Set
Computing
i860 RISC under the radar
IBM connection-i860
standard
Equal to X86 CISC line
Intel
CISC v/s RISC
Leading PC distributor on X86
Retaliates
NexGen
Compaq
Product introduction at Chicago
Software compatibility with old
architecture
Stepping up R&D
2 generations of X86-Pentium &
Pentium Pro
CISC wins
Contracting : Intel had long term contracts
with many of its suppliers to provide parts for
mass production
Reducing asset specificity : Since sole source
suppliers had become less responsive to
requests, Intel went back to dual sourcing of
critical pieces of production equipment.

Building relationships : Intel viewed Microsoft
as a complement and routinely met up with
management to discuss new developments.
Building bargaining power : Intel made the
industry more dependent on its processors by
the Intel Inside campaign.
Decreasing bargaining power : Tried to also
decrease bargaining power of Microsoft by
investing in Apple/linux.

Internal threat, rather than
external.
Scope for slack highest in
companies that have seen high
economic success.
Difference between
amount potentially
available to the
organization and the
value they have actually
been able to capture
Optimum utilisation of resources
Maintain relationships
Mobilizing for change
Gathering Information -
Benchmarking
Ability to withstand
comes from the past
economic success and
the current situation.


Thank you !

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