Wintel Case Write up
WINTEL: CO-OPERATION OR CONFLICT
Drivers of profitability
Intel
Brand Recognition: Through its ‘Intel Inside’ campaign Intel created a global brand which certainly adds to the bottom line of its business through the premium they are able to charge for their products.
Innovation: Unequivocally Intel has been one of the most innovative company in hardware manufacturing industry. Intel has always been at forefront in terms of product innovation. NSP is a salient example of same.
Business Strategy: A key strategy, core to Intel’s product cycle, implemented by Intel was application of Moore’s Law. Every 18 months Intel used to increase transistors in its CPU which gave its previous product ample time to capture market base and also gave partners enough time to develop an OS compatible with new Intel’s hardware.
R&D: Setting up IAL (Intel Architecture Lab) entails Intel’s commitment toward development of innovative and user friendly products.
Microsoft
Brand Recognition: Through its logo campaign Microsoft has established brand Windows which is basically alias for OS now.
Monopoly: Microsoft occupies roughly 85% of global market share. Such unprecedented presence is enough to charge a high premium and thus drive the profitability.
Partnership: Microsoft has key partners in terms of hardware suppliers and OEM. Such partnership indicates good synergy and thus better bottom line.
Applications: Low cost development of applications has given incentives for developer to work on windows platform. This strategy ensured that there were enough developers willing to constantly develop applications for Windows OS.
Competition annihilation: Microsoft being a giant firm has most of the times tried to discourage competition by acquiring them ensuring that their market share remains intact.
CONFLICT
Microsoft and Intel ran into conflict yet again with Intel’s plan to launch NSP and Microsoft’s plan to launch Windows 95 when NSP was compatible only with Windows 3.0. Intel
Drivers of profitability
Intel
Brand Recognition: Through its ‘Intel Inside’ campaign Intel created a global brand which certainly adds to the bottom line of its business through the premium they are able to charge for their products.
Innovation: Unequivocally Intel has been one of the most innovative company in hardware manufacturing industry. Intel has always been at forefront in terms of product innovation. NSP is a salient example of same.
Business Strategy: A key strategy, core to Intel’s product cycle, implemented by Intel was application of Moore’s Law. Every 18 months Intel used to increase transistors in its CPU which gave its previous product ample time to capture market base and also gave partners enough time to develop an OS compatible with new Intel’s hardware.
R&D: Setting up IAL (Intel Architecture Lab) entails Intel’s commitment toward development of innovative and user friendly products.
Microsoft
Brand Recognition: Through its logo campaign Microsoft has established brand Windows which is basically alias for OS now.
Monopoly: Microsoft occupies roughly 85% of global market share. Such unprecedented presence is enough to charge a high premium and thus drive the profitability.
Partnership: Microsoft has key partners in terms of hardware suppliers and OEM. Such partnership indicates good synergy and thus better bottom line.
Applications: Low cost development of applications has given incentives for developer to work on windows platform. This strategy ensured that there were enough developers willing to constantly develop applications for Windows OS.
Competition annihilation: Microsoft being a giant firm has most of the times tried to discourage competition by acquiring them ensuring that their market share remains intact.
CONFLICT
Microsoft and Intel ran into conflict yet again with Intel’s plan to launch NSP and Microsoft’s plan to launch Windows 95 when NSP was compatible only with Windows 3.0. Intel