Andrew Grove and Intel
1. How was Intel able to survive and prosper in an industry environment that squeezed out most of its competitors?
Soon after Intel’s early success, competitors entered the DRAM market, and a dynamic game developed in the industry that forced companies to balance the benefits of driving production down a steep experience curve against leapfrogging to the next generation. As long as you learned enough to make a device with high yield, you calculated that you could decrease costs by trying to make something four times as complex, which brought the yield down again.
The developing primary task for Intel in the 1990’s was determining where to make a technological investment in the company. Intel had been successful in the past due to their ability to advance with technology. Intel needed to identify and allocate resources to the products that would allow Intel to remain at the heart of the computer industry. Although Intel had was profitable making microprocessors, they were also investing in other new technology such as the flash chips which had the promise to replace discs and disc drives. Intel needed to determine what technology to invest in to stay ahead of its competitors.
2. How would you describe its critical competitive advantage?
Intel’s organizational culture is a performance–driven culture. “The organization steadily preserves and grows value and remains vibrant even in the face of dramatic shifts in the environment. They sustain viability even while traversing challenging conditions. Intel’s values appear to be encouraging innovation and flexibility and learning.
3. What role has Andy Grove played in Intel’s overall success? How would you describe his major contributions to date?
Grove focused more on individuals and took great pride in putting people where they were needed. He believed that there are the quick, and there are the dead. So Intel had to be flexible in moving human resources as needs changed. He convinced the
Soon after Intel’s early success, competitors entered the DRAM market, and a dynamic game developed in the industry that forced companies to balance the benefits of driving production down a steep experience curve against leapfrogging to the next generation. As long as you learned enough to make a device with high yield, you calculated that you could decrease costs by trying to make something four times as complex, which brought the yield down again.
The developing primary task for Intel in the 1990’s was determining where to make a technological investment in the company. Intel had been successful in the past due to their ability to advance with technology. Intel needed to identify and allocate resources to the products that would allow Intel to remain at the heart of the computer industry. Although Intel had was profitable making microprocessors, they were also investing in other new technology such as the flash chips which had the promise to replace discs and disc drives. Intel needed to determine what technology to invest in to stay ahead of its competitors.
2. How would you describe its critical competitive advantage?
Intel’s organizational culture is a performance–driven culture. “The organization steadily preserves and grows value and remains vibrant even in the face of dramatic shifts in the environment. They sustain viability even while traversing challenging conditions. Intel’s values appear to be encouraging innovation and flexibility and learning.
3. What role has Andy Grove played in Intel’s overall success? How would you describe his major contributions to date?
Grove focused more on individuals and took great pride in putting people where they were needed. He believed that there are the quick, and there are the dead. So Intel had to be flexible in moving human resources as needs changed. He convinced the