Intel – Case Study Example
Intel Intel initially started with a small memory chip company like many other companies in Silicon Valley. The first pioneering invention from Intel’s fold came in the year 1970 in the form of the 1103, the 1-kilobit DRAM that replaced magnetic core memory due to its cost advantage. Intel being a small company in those days used to compete with Hitachi and Mitsubishi. DRAM business was never a stronghold for Intel as Japanese companies were far ahead of Intel in manufacturing operations for their significant cost advantages.
Intel catapulted into limelight through EPROM which gave them recognition and riches. The read-only memory in the form of EPROM provided huge benefit to engineers as they could write data in a few minutes. Having realized that days of DRAM business are over Intel came out with worlds first processor, the 4004, in 1971. The remarkable achievement for the company came in the year 1981 when IBM introduced its 8088 microprocessor in its personal computer. This event catapulted Intel a leader in the business of microprocessors and established itself as an industry standard. This helped Intel to capture a large market share and grew on that foundation through innovation and value addition.
It was in 1991 that Intel launched the "Intel Inside" campaign. Intel decided to reimburse up to 50 percent of the advertisement cost of the participating OEMs in lieu of putting "Intel Inside" logo in their ad campaigns and “Intel Inside" sticker on their products. More than 300 OEMS signed off with Intel making Intel an industry norm for microprocessor technology and reliability. “Intel Inside” then became the world’s most known brands for the computer users.
Intels 32-bit microprocessor was ready much before Microsoft could produce 32-bit operating system in the form of Windows 95. With the launch of MMX multimedia processor in 1996, Intel perched into a big league thereafter as Intel spent $100 million to pay game writers and other software vendors for their product plans to get benefit of multimedia instructions of the chip. Intels 32-bit Xeon processor introduced in 1998 added value to the computers on a network called servers. The 64-bit Itanium processor developed in collaboration with Hewlett-Packard had a significant advantage when compared with competition such as Sun Microsystems and IBM in the server segment.
The communication and convergence of computing are denoted as major thrust areas for the internet and Intel continues to serve both of them. Internet involves three areas namely network connectivity, client and the server and Intel being competent to provide building blocks in all of these three areas creates tremendous value addition. It was in the year 2006 when Intel led the industry in multi-core technology delivering the worlds first quad-core processor for servers and desktops adding further value in the field of microprocessors.
The new additions and innovations of Intel increased its revenue from $855 million in 1980 to more than $33,000 million achieved in the year 2000. Also, the net profit surged from $97 million to $10,535 million during the same period. This establishes that Intel has transformed itself from a small company in Silicon Valley of ‘80s to a big league through tremendous value addition making an indelible mark in the field of computing and allied fields.
Corporate Time Line–A History of Innovation (2011), October 4 2011, online from http://www.intel.com/about/companyinfo/museum/archives/timeline.htm