1. What are the lessons useful for their future microprocessor business that you think Intel should have taken away from their experience in the DRAM industry?
Continuous innovation: As a technology company and from the experience of DRAM, it is necessary to continuously innovate to uphold the leadership position in the industry. Intel was left behind after 1103 DRAM in innovation.
Multiple approaches: It is necessary to take the multiple pronged approaches especially in the uncertainty of the technology business. In DRAM, Intel deployed three different process technologies ‘Goldilocks strategy’ and decided whatever technology came to fruition would be mass-produced. This is effectively hedging the risk in the business.
Competitive
Through this Intel was able to keep full control over pricing.
Increased awareness of Intel’s brand through campaign ‘Intel-inside’: Intel set-aside a percentage of prices from its microprocessors to contribute to OEMs ad-cost. In-exchange OEMs included ‘intel-inside’ logo in their ads, as well as put Intel’s sticker on their products in all most all the computer brands. This led to ‘Intel-Inside’ becoming worlds most recognized brands.
Continues investments and partnerships to maximize value: Intel continuously invested in its suppliers to help them produce next-gen technology. It also partnered with Microsoft, to make sure software development go hand in hand with fast paces hardware development. It also established a fund called ‘Intel capital’ to promote complementors (other complementary firms to Intel) that could push the market ecosystem forward with Intel.
4. What were the most important things Intel did between the late-‐‐1980’s and mid-‐‐1990’s to make sure that it obtained a large share of its added value as profits?
Sole producers of its technology (sole licensor): Intel realized that it was not benefiting by licensing and sharing its technology and proposed IBM to become its sole-manufacturer. Through this Intel was able to keep full control over pricing.
Intel inside campaign by making the end consumer value the Intel performance: Intel set-aside a percentage of prices from its microprocessors to contribute to