Intel has faced various threats to its competitive advantage over the years including imitation, substitution, slack, and holdup. To address imitation from Japanese DRAM manufacturers, Intel recognized that innovation was not viable in that market and exited DRAM production. When other manufacturers began producing x86 compatible processors, Intel responded by vigorously enforcing its intellectual property rights and launching the Intel Inside marketing campaign. To combat substitution threats like IBM's PC standard, Intel launched major sales efforts to secure design wins and draw customers to its own microprocessors. Intel also introduced RISC designs while continuing to develop products compatible with the dominant x86 software base.
Intel has faced various threats to its competitive advantage over the years including imitation, substitution, slack, and holdup. To address imitation from Japanese DRAM manufacturers, Intel recognized that innovation was not viable in that market and exited DRAM production. When other manufacturers began producing x86 compatible processors, Intel responded by vigorously enforcing its intellectual property rights and launching the Intel Inside marketing campaign. To combat substitution threats like IBM's PC standard, Intel launched major sales efforts to secure design wins and draw customers to its own microprocessors. Intel also introduced RISC designs while continuing to develop products compatible with the dominant x86 software base.
Intel has faced various threats to its competitive advantage over the years including imitation, substitution, slack, and holdup. To address imitation from Japanese DRAM manufacturers, Intel recognized that innovation was not viable in that market and exited DRAM production. When other manufacturers began producing x86 compatible processors, Intel responded by vigorously enforcing its intellectual property rights and launching the Intel Inside marketing campaign. To combat substitution threats like IBM's PC standard, Intel launched major sales efforts to secure design wins and draw customers to its own microprocessors. Intel also introduced RISC designs while continuing to develop products compatible with the dominant x86 software base.
Intel has faced various threats to its competitive advantage over the years including imitation, substitution, slack, and holdup. To address imitation from Japanese DRAM manufacturers, Intel recognized that innovation was not viable in that market and exited DRAM production. When other manufacturers began producing x86 compatible processors, Intel responded by vigorously enforcing its intellectual property rights and launching the Intel Inside marketing campaign. To combat substitution threats like IBM's PC standard, Intel launched major sales efforts to secure design wins and draw customers to its own microprocessors. Intel also introduced RISC designs while continuing to develop products compatible with the dominant x86 software base.
Imitation Substitution Slack Holdup Added Value Appropriated Value Imitation I The Issue Japanese DRAM Manufacturers Shorter Product Development Times Fuelled By Technology Advantage
Response Recognised that innovation is not an enforceable strategy in DRAM Left the Market
Imitation II The Issue All manufacturers built processors on Standardised x86 instruction sets Essentially selling an undifferentiated product, a commodity so to speak
Response Intel vigorously enforced its IPR by filing a case Launched the Intel Inside campaign to create the missing differentiation
Imitation III Issue Intel was continuously faced with relentless competition from companies as Fujitsu & AMD
Response Constantly invested in R&D Created new products Worked towards efficient manufacturing Focus was to drive innovation Developed new market opportunities for sustainable growth Substitution I Issue Emergence of IBMs PC standard
Solution Project CRUSH Sales effort intended to secure 2000 design wins To acquire a contract from IBM Project CHECKMATE An effort to win products for its new microprocessor 80286 Draw customers away from Motorola 68000
Substitution II Issue Emergence of RISC
Solution Introduced own Designs I860, based on RISC architecture Redoubled focus on x86 Began developing products only compatible with x86 software base
Slack I Issue Low Yields on New Products
Response Regulate demand with higher prices Multiple Fabs built to similar specifications Ration Supplies to OEMS Hold Up I Issue Relations with Software makers
Response Strengthen ties with Software Developers Even today, it has a strong collaboration with Microsoft Hold Up II Issue Supplier Relations Initially used Sole Sourcing However, suppliers were less responsive to requests for technical support or improvement
Response Moved towards Dual Sourcing of critical pieces of production equipment