Intel - The Component Branding Saga

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Case Details:

Case Code : MKTG038
Case Length : 13 Pages
Period : 1997 - 2002
Pub Date : 2002
Teaching Note : Available
Organization : Intel
Industry : OEM
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Dancing its Way Towards Leadership Contd...

Thanks to Intel that made the chip inside the personal computer (PC) so popular. Intel had been able to bring about this change, primarily due to its focused R&D and product development efforts. However, its biggest success lay perhaps in its well-etched and executed marketing strategies devised, over the years, to promote Intel as a brand.

Through its efforts Intel became synonymous with computer microprocessor chips and the undisputed industry leader. The company had an 80% share of the global microprocessor market - leading not only in terms of sales revenues, but also in terms of innovation.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Background Note

Intel was established in 1968, by three engineers, Robert Noyce, Gordon Moore, and Andy Grove. Unhappy with the state of affairs at the company they were working for, Fairchild Semiconductor, the trio decided to start their own company and develop technology for silicon based chips.

The result was the formation of Intel (an abbreviation for Integrated Electronics) at Mountain View, California.

Intel's first commercial product was the '3101 Schottky bipolar 64-bit static random access memory' (SRAM) chip. To meet the requirements of a Japanese company, Busicom, that manufactured calculators, Intel made a microprocessor chip that performed the function of 12 silicon chips put together.

Named 40042, the world's first microprocessor chip was released in 1971. This chip could compute as fast as the ENIAC3, the fastest computer available those days.

Commenting on this invention, David K Allison, a technology historian, at the Smithsonian said, "I think it (the microprocessor) ranks in the same league as the invention of the steam engine, the automobile or the airplane. The microprocessor has had a kind of transforming quality for civilization...

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2] The 4004 chip was one-sixth inch long and one-eighth inch wide and consisted of 2,300 MOS transistors (Mean Opinion Score). MOS is used mainly in voice communications to determine the quality of the voice at the destination end of the circuit.

3] Invented in 1946, the Electronic Numerical Integrator and Computer (ENIAC) was the first electronic device used for computing. It weighed 30 tonnes, occupied 3,000 cubic ft. of space and had 18,000 vacuum tubes.


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