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Intel Case Study - Hbr

In: Business and Management

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The key marketing challenge Intel is facing today is generating awareness about the mosaic of technological possibilities using the microcontroller based computers. To tackle this issue without having to enter unexplored markets and face the risk of diluting the brand is another major challenge. Intel, with a share of nearly 80% of the Microprocessor market, could be termed the “ingredient” monopoly of the PC market but with products like Cell phones and PDAs on the rise and with market share as low as 1% in cell phone chipset, trying to come up with an effective distribution and advertising strategy to help maintain their market position is the need of the hour

The first solution to overcome this challenge is to integrate the microprocessors with a variety of technologies using the impeccable R&D facilities available to ensure a larger pool of customers is catered to. Apart from allocation of significant amount of revenue towards R&D to come up with innovative products for customers, Intel needs to focus on building relations with pioneers in the fields of consumer electronics, telecommunication, space science and industrial engineering. By working with them Intel could gain a wider market presence and a diverse portfolio. Also, an effective advertising strategy which focuses on educating the customers about the power of technology through videos, blogs and interactive websites needs to be implemented. This would help highlight the emphasis laid on technology and also generate more awareness about the Intel products. The pros of this solution are (i) Intel can tap a larger section of the market without the need to enter markets which are completely new and hence avoiding the risk of having to compromise the brand image. (ii) With an approach to educate customers using websites and some useful technical videos, Intel can generate the much needed awareness...

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