Intel Case asbm

INTEL CASE

BY GROUP 7

introduction •

•

•

•

Intel teamed up with Rambus in 1996 Intel making microprocessor microprocessor Rambus making high speed memory chip Craig Barrett is intel chief executive

02/06/09

group 7

2

SALIENT FEATURE •

•

•

•

Intel as world’s largest chip manufacturer Intel good at producing faster microprocessor But not at PC memory chip Rambus producing high speed memory chip for PC Making of memory chips by Rombus were fast and expensive

02/06/09

group 7

3

KEY PROBLEM AREA •

Over dependency of Intel microprocessor microprocessor on Rambus memory chip for technology innovation.

02/06/09

group 7

4

SWOT ANALYSIS STRENGTH

Intel capacity to produce high speed microprocessor Rambus capacity to produce high speed memory chip Intel efficient money and marketing muscle Favorable investment strategy in Samsung and Micron Technology •

•

WEAKNESS

Poor Rambus strategy Expensive and difficult making of  Rambus memory chip Flaw in PC boards of Rambus •

•

•

•

•

OPPORTUNITY 

THREAT

Intel may reap more benefit due to Slowing PC market may hamper investment in Micron and Samsung Intel's profit High profit margin due to its Dependency on Rambus memory efficient microprocessor microprocessor chip will badly effect its Pentium 4 microprocessor chips market along with existing Lack of support to Rambus from memory chip producer and chip maker will make the situation more 02/06/09 group 7 5 •

•

•

•

•

CURRENT SCENARIO •

•

•

•

•

•

Intel teamed up with Rambus in 1996 Cancellation of Timna microprocessor microprocessor Recall of more than 1m PC motherboard in May Scrapping of about 1m PCs a year ago Intel paid $500m for 6% stake in Micron technology Investment of $100m in Samsung

02/06/09

group 7

6

BCG MATRIX

Intel is at star position with high market growth and market share whereas Rambus is at dog position with low market share and market growth 02/06/09

group 7

7

ANSOFF MODEL

 The team of Intel and Rambus entered in the existing PC market with existing product so is market penetration

02/06/09

group 7

8

DREK MODEL •

•

Intel is having leadership position with high brand strength (i.e. differentiation and relevance) and high brand stature (i.e. esteem and knowledge) On the other hand Rambus is at new/unfocused position position due to low on brand strength and brand strature

02/06/09

group 7

9

CORECOMPETENCY •

Fast and efficient manufacturer of  microprocessors microprocessors with technology innovation

02/06/09

group 7

10

COMPETETIVE ADVANTAGE •

•

Investment in Micron and Samsung caused appreciation in share price Better money and market capabilities

02/06/09

group 7

11

USP •

 Technological innovation in making microprocessors

02/06/09

group 7

12

DIFFERENTIATION •

High on technology innovation with right investment strategies

02/06/09

group 7

13

POTTER’S MODEL

02/06/09

group 7

14

 THE FIVE FORCES •

 The threat of entry of new competitors (new entrants) is nil due to slowing PC market

•

The threat of substitutes in the form of slower and cheaper memory chip •

•

•

 The bargaining power of buyers is more due to slowing PC market  The bargaining power of suppliers in increased due to availability of cheaper types t ypes of memories  The degree of rivalry between existing competitors is quite obvious from the legal suit by Rambus on Hitachi and other companies

02/06/09

group 7

15

FUTURE SCENERIO •

•

•

Intel may emerge as a high profit making company with independent microprocessor microprocessor making and high share value Intel may incur losses due to slowing PC market Rambus may incur more losses due to PC makers favoring slower but cheaper types of memories

02/06/09

group 7

16

SUGGESTION •

•

Intel should break off from Rambus due to slowing PC market and expensive making of memory chips Intel should reduce dependency on other company for technological innovation

02/06/09

group 7

17

THANK U

02/06/09

7

18