Intel Case - Tetra Threat Framework: Monica Mandyani - 117 Heer Mehta - 119 Digant Purani - 132 Poonam Thakur - 154
Intel Case - Tetra Threat Framework: Monica Mandyani - 117 Heer Mehta - 119 Digant Purani - 132 Poonam Thakur - 154
Intel Case - Tetra Threat Framework: Monica Mandyani - 117 Heer Mehta - 119 Digant Purani - 132 Poonam Thakur - 154
framework
Monica mandyani 117
Heer Mehta 119
Digant Purani 132
Poonam Thakur - 154
Imitation Substitution
Slack Holdup
Tetra Threats
Imitation
Substitution
Added
Value
Slack
Hold up
Appropriated
Value
Substitution Threat
Intel faced a potential competitive threat from
RISC in 1989 with the launch of its fourth
generation
RISC speed, cost, price-performance ratio
but lesser compatibility
Intels i860 RISC and X86 CISC
Compaq to launch substitute of X86
Intels decision to introduce two generations
of X86 simultaneously
Imitation Threat
Intel faced threats from its rivals like AMD, Texas
Instruments and Cyrix etc. that produced
microprocessors compatible with MS-DOS
Intels protection of Intellectual property rights
was not entirely successful
Patents became economically obsolete
For fifth(Pentium) and sixth(Pentium Pro) Intel
changed its strategy to advantage in performance
over competitive offerings
Cost recovery through huge fall in price after
introduction
Customers Response to Holdup
Intel Inside Advertising campaign
Customers are OEMs
1994 Software vendors also involved with
Intel Inside
Resistance from IBM and Compaq
1996- Compaq decides no more resistance
1997 IBM rejoins the campaign
Mid
1970s:
Early
1980s
1987
1990
Sales of System
Groups were high!
1970 : Start of System
Groups
Super computers
and PCBs included
Production of
Entire Computer.
Sold to AT&T, DEC,
Unisys, Olivetti
System Groups
accounted 25-30%
of Intel Revenue
Intels System Business
Supplier Relationship
By 1994, One of the worlds largest purchaser of
semiconductor.
Since 1985 : Sole-sourcing
Advantages
Standardize Process
Easy transfer of technology
Ramp up Production
Disadvantages
Suppliers became less responsive to requests of technical
support or improvements.
Solution in 1990 : Dual-Sourcing for critical pieces.