1. Strategic Management – 2 10th March 2010
Assignment #2
Submitted by – Rajendra Inani #27
Intel Corporation in 1999
This case talks about the three Epoch (periods) seen for Intel Corporation since its start in 1968.
The period from 1968 to 1985 is termed as Epoch I. The company business strategy was based on Broad
Based Semiconductor manufacturing involving Memory Chips and later added with Microprocessors.
Factors responsible for Intel to move to next business strategy were entry of low cost producers from
Japan in memory chip market, low returns in memory chip business, availability of support system by
joining hands with IBM and MicroSoft ( infamously called WinTel), creating almost monopolistic market
for PC products.
The period from 1985 to 1999 is termed as Epoch II. Core competency of Intel during this period was
Microprocessor manufacturing and continuous innovation in Microprocessor family for each segment of
market. Intel has realized by the end of Epoch II that with advent of Internet, only the innovation of high
performance Microprocessor would not keep them in leadership position. This has brought Intel at a
Strategic Inflection Point, where it has been forced to make a fundamental change in Business Strategy.
With start of Epoch III in year 1999, Intel took strategy of developing Internet Building Blocks. As part of
this strategy, Intel made new collaboration with Cisco and other technology partners. But, these
collaborators are afraid of making a near monopoly business relationship. Intel was struggling to create
a sustainable support system.