INTEL CASE - Explain Intel's strategies and their evolution in time.

- Analyze critically Intel's strategies.

Bob, Gordon and Andrew established in California in 1968 a world famous company: Intel. At the beginning, this company produced semiconductor memory chips; however, as we will explain during this paper Intel’s production shifted into other fields.
The main strategy Intel had was innovation the design of the product and being the first ones to achieve the market with the newest devices. This strategy entailed that the company was positioned at the cutting-edge in investments and infrastructure. Therefore, Intel invested a large amount of money in R&D, and underwent a strong investment in manufacture equipment in the beginning of the firm. This strategy positioned Intel were differently than the rest of competitors, always trying to achieve the first position in the competition. However, the first two products (1101 and 3101), introduced in 1969, did not succeed. In 1971, Intel managed to produce the world best selling semiconductor memory chips.

In the years that followed, Japanese companies achieved to overtake to Intel with DRAMS semiconductors, these being more efficient, fast and cheaper than Intel’s. Later on Intel created the second generation of microprocessors and IBM entered in the microcomputers market with the PCs. Within this framework , Intel had to compete with Motorola and establish an alliance with IBM. Then, Intel developed Project Crush as an strategy to win 2000 designs and a contract with IBM. This contracts was achieved,ut Motorola remained as the main competitor because it was dominating the market. Therefore, Intel created the Project Checkmate to be the number one and get more clients in the future.
In this context, another strategy was created by the middle managers in the company. They proposed to quit from DRAM business and focus resources on microprocessors. The efficiency of the production process was the main idea, satisfying the demand the company found there was in the market at that time. this decision was take through learning by doing.
The last strategy from 1968 until 1997 was that Intel patented X86 and created a standard for the microprocessors, so Intel was secured to monopoly the market.

Therefore, the main strategies are the following:

-Strengthening its development capacity of innovative products and keep the intelectual property.
-Developing strong market strategies to claim the involvement in the microprocessors. Optimized production capacity minimizing the structure of marketing of the microprocessors with the licenses and also due to price increase of the new product generation. Then when the competitors are in the market, the prices had already decreased. This strategy is difficult to imitate and avoid the competitors wants to entry in the market.
-Strengthening the process of technology thanks to middle managers. Intel had the capacity to see inside the organization and take advantage the staff know how and learning of the mistakes.
Intel found the following environment features:
There was a great demand so it gave power to negotiate with the clients. the suppliers had a low power to negotiate. There was a variety of suppliers to satisfy the needs of the firm.
Moreover, it is a market with high costs of production so it is necessary to have a high of volume of production. Also, it needs a strong investment in R&D to be the first in the market. Despite all that, it is complicated to be a competitor with this situation.
At the beginning the Japanese competitors managed to produce similar products to those Intel produced, but they never achieved to produce them with the same quality standards Intel did. When Intel changed its production into microprocessors, it was more difficult to imitate. The speed of the production, the adaptability to the clients and the quality were the key.

Intel is a firm which is always in movement, feeding a market does not take a rest. Intel inspires new partners to develop products and innovative services.
The firm has been adapting to the market changes and even anticipating,o (nunca puedes empezar una frase con so ni and) it can lead its market and dominate it. Its development is based on a intensification strategy. it involves the same products (microprocessors) and the same markets. The condition of this strategy is the future demand: marketing creates that future demand.
Its competitors are under control because of know how Intel dominating the market. They are important for Intel because they are functional inside the market.
In my opinion, Intel created a sound strategy, based on flexibility, since the IT field is very dynamic and at the moment was emerging. This company did fast movements hindering the competitors ability to react, and thus generating an advantage with each new challenge.
Moreover Intel decided to invest in R&D and it is a reliable strategy. Finally, Intel achieved a competitive advantage patenting licenses, so no other firms could develop the same technology . So we could say “We argue that ignorance of an organization´s past can undermine the development of strategies for its future” (1998-Strategy Safari).

Sources: * What is strategy? Porter * Strategy safari: a guided tour through the wilds of strategic management. * Intel Corporation – Harvard Business School