Intel Case 1 2 
TH002 Case#4
Santos, Cello
Ventinilla, Joseph
Ongjoco, Samuel
Diesta, Jed
Rabosa, Catherine
1. In your judgment is Intel a “monopoly”? Did Intel use monopoly-like power, in other words, did Intel achieve its objectives by relying on power that it had due to its control of a large portion of the market? Explain your answers.
In my judgment Intel acted like a "monopoly. The characteristics of a monopoly are a single seller, unique product no substitutions, the firm is the price maker and entry and exits are blocked. In this case study there were several evidence that Intel attempted to create a monopoly. First, Intel developed and patented a new microprocessor, which legally barred AMD from making it. Second, when AMD created a better microprocessor, Intel offered rebates in the form of millions of dollars to the major computer companies in Japan. The company’s that received the rebates agreed to stop buying from AMD. Third, Intel coded its software to inhibit the ability of AMD’s microprocessors to run efficiently. Fourth, Intel punished computers like Dell when they refused to boycott AMD.
2.
Without a doubt Intel operated unethically when offering rebates to their customers. In no way is it ethical to pay someone for your business. It is dishonest and should not be allowed. AMD was trying to come by production honestly and by building their business the way it should be. The business plan was extremely monopolistic with unmoral standards towards their competition - AMD. Whether it was their method of threatening other companies that used AMD which manipulated their manipulation of the supply and demand curve is viewed unethical in a free market (Vasquez, 2012) or their request of boycotting their competitor, their actions spoke volumes when they decided to tamper AMD’s merchandise. Intel violated AMD’s right of operating a business by offering a ‘rebate’ that in actuality was not benefiting the consumer in any way, meanwhile crippling the value of AMD’s
Santos, Cello
Ventinilla, Joseph
Ongjoco, Samuel
Diesta, Jed
Rabosa, Catherine
1. In your judgment is Intel a “monopoly”? Did Intel use monopoly-like power, in other words, did Intel achieve its objectives by relying on power that it had due to its control of a large portion of the market? Explain your answers.
In my judgment Intel acted like a "monopoly. The characteristics of a monopoly are a single seller, unique product no substitutions, the firm is the price maker and entry and exits are blocked. In this case study there were several evidence that Intel attempted to create a monopoly. First, Intel developed and patented a new microprocessor, which legally barred AMD from making it. Second, when AMD created a better microprocessor, Intel offered rebates in the form of millions of dollars to the major computer companies in Japan. The company’s that received the rebates agreed to stop buying from AMD. Third, Intel coded its software to inhibit the ability of AMD’s microprocessors to run efficiently. Fourth, Intel punished computers like Dell when they refused to boycott AMD.
2.
Without a doubt Intel operated unethically when offering rebates to their customers. In no way is it ethical to pay someone for your business. It is dishonest and should not be allowed. AMD was trying to come by production honestly and by building their business the way it should be. The business plan was extremely monopolistic with unmoral standards towards their competition - AMD. Whether it was their method of threatening other companies that used AMD which manipulated their manipulation of the supply and demand curve is viewed unethical in a free market (Vasquez, 2012) or their request of boycotting their competitor, their actions spoke volumes when they decided to tamper AMD’s merchandise. Intel violated AMD’s right of operating a business by offering a ‘rebate’ that in actuality was not benefiting the consumer in any way, meanwhile crippling the value of AMD’s