Intel Case

Group: 3
Name: Peeyush Garg, Maisam Naqvi, Kory Duong, Michael Ogungbemi, Maryiam
Imam
Intel Case 1

Intel and AMD as two giant technological companies have for a while now been
going head to head seeking to improve the abilities of their microprocessors. The market was
unable to accommodate both of these companies, and as of 2007, both their numbers started
decreasing. Having similar customer buying the best out o the two meant that each side had
to outdo the other; a step AMD achieved after producing their chip that could run both 64 and
32 bit. This was competing against the microprocessor that only ran the 64-bit software. In
light of recent challenges in the technological industry, the company’s market perspective
changed to ensure their survival.
The dynamic semiconductor market
Intel rivalry has in recent years pushed the technological giant into another region
such as communication, internet services, and other information appliance. The Intel market
shares had been lost to AMD forcing it to make drastic changes such as cutting off a number
of its employees ("Side Channel Attacks - Vulnerability Analysis, News, and Updates,"
2018). Intel management is keen on taking dominance in a market they previously owned, a
feat they achieved in 2007 after reducing the size of their microprocessor. The Intel
management had to set evolve with these changes and as such saw the need to lay off other
projects and investment such as the development of the big screen chips. The new market as
viewed by Intel requires and calls for change, adjustment, and steadfast modification as each
chip has to be half the size and twice the speed of other predecessors. Making a profit in this
new market calls for diversity and cutting-edge technological delivery that seeks to do the
impossible.
Competitive challenge Intel faces from TI, Samsung, and TSMC
Recent development in the chip industry, Intel has been a dormant entity taking leads
over other companies such as Samsung and TSMC. The pressure that the giant has received
on its core business from AMD has weakened its reach in the industry and even though it still
claims good numbers, the bid from Apple on the delivery of the over 200 million chips per
year for the Apple devices (Perlmutter, 2006). As this massive manufacture battle it out for
the chance to stand out amongst the rest, Intel former glory would have secured the deal
easily but as it is the giant has to battle it out with the other manufacturers such as Samsung
and TSMC.

Intel fend off challenges

Intel Case 2

Challenges within Intel could be controlled by cutting costs and taking on ready and
executable projects. It could manage to foresee result in the Apple bid as it has the resources
to handle such a demand. The three-head race as perceived by many would only be snatched
by Intel when it reduced its weakness and met on the release date for its chips that it had
assured the market. Taking on responsibility was one of Intel's strong points as no new task
was hard or far from reach, the issues the giant is having have seen it stands back into its
original limelight. The competitive challenges that it has should be overlooked by the
introduction of better processors that are up to the standards of its markets. After cutting of a
number of its workers, it should look forward to getting enough people to handle any work it
takes.

Activities Intel does

Intel is the world’s second largest and second highest valued semiconductor chip
makers. They supply high speed processors for computer system manufacturers like Apple,
Dell, HP etc. Intel also manufactures motherboard chipsets, integrated circuits, and
embedded processors related to computing. Intel was an early developer of SRAM and
DRAM memory chips, which represented the majority of its business until 1981. During the
90’s, Intel invested heavily in new microprocessor designs fostering the rapid growth of the
computer industry. During this period, intel became the dominant supplier of microprocessors
for PCs, and is currently the inventor of the x86 series of microprocessors. These are the
activities Intel focuses on and does very well. What separates Intel from most other
semiconductor companies is that it fabricates its products in-house.

key ways Intel creates customer value

Intel creates customer value by continuous improvement and quality. In 2016, Intel
established the Intel Innovation Generation to inspire underrepresented youth to become
innovators in technology, empower them to transform tomorrow's workforce, close the
gender gap in technology access and career paths, and integrate technology across higher
education. Intel also has a very long history of investing in education to empower people and
improve lives through technology.

Intel’s technology advantage

Intel Case 3

Intel’s technology advantage is creating high speed processors and semiconductor chips.
Most computer manufacturers need these chips for their computers making Intel a very
important and needed company in the business. As of 2017, majority of computers and
laptops sold are based on the x86 architecture, which also dominate cloud computing
segments. Intel has an elaborate business organization. The company’s major divisions
include the Client Computing Group; which includes desktop computers, notebooks, and
tablets, the Data Center Group; which includes products for cloud communications and
infrastructure, and the Internet of Things Group; which includes products designed for
internet connectivity in areas like retail, transportation, industrial, video, buildings and smart
cities. In addition to semiconductors and chips, Intel also produces security software
products.

Exploitation of advantage
In terms of exploiting Intel’s technological advantage Due to the fact that AMD is Intel’s
main competitor, it boils down to who can offer the better features, while maintaining
consumer value. According to a technology website, Techwalla, Intel Atom CPU uses only 5
watts, compared to AMD’s which uses about 2-3 times the amount of wattage. Intel can use
this to their advantage by marketing a longer battery life because it’s CPU uses less
electricity. However, using the term “wattage” maybe considered to be technological jargon,
so Intel must also educate its potential consumers in basic terms on how their products offer
more value than their competitors. Also, Intel’s processors generate less heat, this can
translate to a myriad of advantages and appeal to various consumers such as gamers who
need durable, high quality CPUs and processors to improve their gameplay or engineers, who
run multiple applications in order to continue to research. Since Intel is successful at
marketing towards these audiences, they should expand their audience to everyday “on-the-
go” users. For example, since their processors produce less heat, they can hit into smaller
capacities, perfect for those with tablets and mini-laptops.

Emergent rivalry
By performing a SWOT analysis, which analyzes the strengths, weaknesses, opportunities,
threats of emerging markets. One of the major strengths that Inter has over emerging rivalries
is that it is a household name. Entering the market with players like Intel would be extremely
Intel Case 4

difficult because semi-conductors and processors are heavy investments. However,

companies like TSMC are gaining momentum in the world market and Intel must be aware of
their growth in order to maintain their position in the world market. In terms of opportunities,
many companies have to deal with the enormous infrastructure that Intel has already
established through its life. Intel also has many patents on semiconductor parts that are
necessary for the production of new ones, therefore in order to create a new processor, they
must use Intel parts to construct it.

Overall Advantages
Intel has tremendous advantages in the overall computing space. It has a history and track
record of innovation in new spaces, as is evident by its transition away from the RAM
manufacturing market. Intel also has patents on microprocessor manufacturing that it licenses
out to other manufacturers (this is how AMD got started). Intel can exploit these advantages
by innovating in new spaces with new technological partners. Intel can shift its focus (as
evident by the current CEO) towards powering the Internet of things and cloud computing
spaces. Cloud computing has enabled hardware to be used via the cloud and Intel is a
powerhouse in chip manufacturing. Furthermore, in the overall computer space, considering
all players involved, Intel has the infrastructure and partners to be potentially vertically
integrate some components of its business. Intel could steal more market share by being more
competitive in price, which would be enabled by vertically integrating a couple of its
businesses components.

Intel’s Focus
Historically, Intel has a track record of innovation and being on the front-line of moore's law.
Intel shifted focus from producing RAM to microprocessors early on, realizing the tough
competition in the RAM space. Intel has many advantages in the microprocessor production
space, including years of experience, technological partnerships and largest market share in
the space. Because of this, we believe it is important for Intel to continue to compete in the
microprocessor space. Despite this, however, we think it is also important for Intel to exploit
new opportunities, as they have proven they can do many times in the past. Intel’s own CEO
has stated that their new goal is to gradually shift from a “computer” company, to a company
that is the powerhouse of the whole internet of things. Intel has had a history of identifying
high demand trends, and sticking to those trajectories. It is now facing a crucial turning point
where if it continues along its current business of microprocessors, it could get locked into
Intel Case 5

one component of a gigantic opportunity. It is crucial that they adapt their strategy and aim
towards continuing to grow the microprocessor business, while focusing on powering the
Internet of things as all devices become connected to one network.

Resource Planning Strategy

Intel should continue to allocate resources, including human resources to their huge
microprocessor business. Intel should also plan on deploying resources towards new business
opportunities and plan to operate with economies of scale to maximize these resources.
Furthermore, expanding into more technical partnerships would further maximize the benefit
of these resources. Most crucial in this process will be to decide what resources can be taken
away from the microprocessor business to have the least adverse effect on the business, while
maximizing growth in other business areas. Intel can dedicate a portion of its resources
towards developing new technological partnerships with companies that are already working
with the cloud on a large scale. Amazon, salesforce, google can bring additional resources to
the table and help Intel in its quest to power the internet of things and the cloud.
Intel Case 6

References

Malone, M. (2014). The Intel trinity. New York, NY: HarperBusiness, an imprint of
HarperCollins Publishers.
FANG, C. (2018). Intel aims to challenge TSMC over Apple chip orders by 2018- Nikkei
Asian Review. Nikkei Asian Page. Retrieved 1 March 2018, from
https://asia.nikkei.com/Business/AC/Intel-aims-to-challenge-TSMC-over-Apple-chip-
orders-by-2018
Perlmutter, D. (2006). Intel Centrino Duo Mobile Technology: The Beginning of an Era
of Mobile Multi-Core Computing. Intel Technology Journal, 10(02).
http://dx.doi.org/10.1535/itj.1002.f
Goettler, R., & Gordon, B. (2011). Does AMD Spur Intel to Innovate More?. SSRN
Electronic Journal. http://dx.doi.org/10.2139/ssrn.1084424
AMD vs. Intel Processor Differences | Lenovo US. (2018). Www3.lenovo.com. Retrieved
1 March 2018, from https://www3.lenovo.com/us/en/faqs/pc-life-faqs/amd-vs-intel-
processor-differences/
Side Channel Attacks - Vulnerability Analysis, News, and Updates. (2018). Intel.
Retrieved 1March 2018, from https://www.intel.com/content/www/us/en/architecture-
and-technology/facts-about-side-channel-analysis-and-intel-products.html
https://www.techwalla.com/articles/the-advantages-of-intel-processors