I.V.
Short historic overview:
Founded by Robert Noyce and Gordon Moore in 1968.
Largest semiconductor chip manufacturer in the
world.
Manufacturing plants found all over the world.
COMPETITORS:
Motorolla
AMD
SUPPLIERS:
Equipment(d
ual/soul)
INTEL
SUBSTITUTES:
RISC
CHANN
EL:
Lisensee s IBM
CUSTOMERS:
IBM
Compaq
Dell
Packard Bell
COLLABORATORS:
Providers
Software
Application
END
USER
Bargaining power of suppliers
Abundance of suppliers
Invest in own suppliers Intensity of exciting rivalry
Suppliers do not have much power.
With such few semiconductor manufacturers, price
has to remain competitive from suppliers.
Suppliers have to be able to maintain high demand for supplies in random spurts.
Threat of new competitors:
Customers and buyers trust intel and AMD
High capital requirements.
Advanced technologies are required
Patents limit new competitor
High learning curve
Threat of substitute
A lower performance
Limited number of substitute
No substitutes are available outside of the current
competitors within the industry.
Fake chips are currently being produced overseas.
New materials are trying to be developed as substitutes. Strategic groups:
The value based ( Celeron)
Mainstream ( Xeon)
High- performance category ( Pentium 32- bit)
Industry life cycle : EMBRYONIC stage Intel first introduced 1k DRAM
TI and Mostek had better design and low cost
Intel lost a full generation to Japanese
Intel faced strong price competition from Japanese
Intel introduced 1 – megabit DRAM but has lost the
market
GROWTH
1980 – “Project Cursh” +Design Wins (Intel and IBM):
IBM open standard, success in format war, being a free rider by design wins.
1983 – License Control: restrict licenses, more design win and more revenue, set up the industry