Presented By:

Praveen 90
Radhika 50
Sudesh 122
SECTION B
 Intel Corporation is the world's largest semiconductor chip
maker, based on revenue.
 The Santa Clara based company was founded on July 18,
1968, by semiconductor pioneers Robert Noyce and Gordon
Moore.
 As of December 26, 2009, it had 79,800 employees
worldwide.
 Revenue 35.127 billion (2009)
 Operating income US$ 5.711 billion (2009)
 PC Client Group (PCCG) -microprocessors and
related chipsets
 Data Center Group (DCG) -servers, storage,
workstations, etc.
 Intel Architecture operating segments:
◦ Embedded and Communications Group - highly scalable
microprocessors, including Intel Atom processors, and
chipsets
◦ Digital Home Group -components for consumer electronics
devices such as digital TVs, high-definition media players,
and set-top boxes.
◦ Ultra-Mobility Group - chipsets designed for mobile
Internet devices (MIDs) within the handheld market
segment.
 About 450 different products
◦ Processors
◦ Chipsets most important
◦ Memory chips
◦ Boards and platforms
◦ Optical devices
◦ Software
◦ NAND flash memory
◦ Network processors
◦ Software products
◦ Healthcare products
 The consumers were unaware of the new
features provided by new 386 processors.
 The thought that the older 286 processors
was capable of doing everything they wanted.
 Carter and his team used billboard
advertising and splashed a big „X‟ over the
old 286, and had the 386 alongside in
Denver.
 This evidently changed consumers buying
plans and soon the campaign was extended
to other US cities.
 Intel believed people needed to know more
about the processor and the company behind it.
 The heart of the program was an incentive-based
cooperative advertising program.
 Adding the Intel logo not only made the OEM's
advertising dollar stretch farther, but it also
conveyed an assurance that their systems were
powered by the latest technology.
 The Intel brand is one of the top ten known-
brands in the world, in a class with Coke, Disney
and McDonalds, according to various rankings.
 Company had made some organizational
change to better align the product roadmap
to the marketing roadmap.
 Marketing teams worked more closely with
the technology teams.
 The ads of Pentium 4 by the Blue Man Group:
“The center of your digital world”, focused
less on the technical features.
 It argued:”Intel is very innovative in
developing new products; we need to be just
as innovative in marketing ”.
 „Intel Inside‟ was used to persuade consumers and
businesses that the processor inside a computer was
more important than the brand name on the outside.
 Now they had achieved awareness, it's over and they
need to move on.
 Intel came up with „Leap Ahead‟ in 2005, making
consumers think about the technology not buy me
because „I'm inside‟, but buy me because I'm doing
something unique.
 It also changed the logo first time in 38 years
 Launched in 2009, and was the largest marketing campaign
in 3 years and its first promoting the company and not a
product.
 Themes like "Your rock stars aren't like our rock stars." and
"Our big ideas aren't like your big ideas.“
 The goal is to promote Intel as a "move-society-forward-by-
quantum-leaps company" rather than just a microprocessor
company.

"I think, over the last 10 years at least, it's been cool to be a geek” according to David
Dickstein, an Intel spokesman. "We're geeks here, and we're damn proud of it."
 Intel has a new plan for growth: getting in
good with young, hip adults.
 Intel in 2010, launched Creator's Project--a
multi-year, international marketing program
designed to showcase technology-influenced
art, film and music.
 Intel‟s growth was the highest in last 42
years, and to sustain it, it wants to win over
consumers, particularly artsy 19- to 24-year-
olds who tend to be trend setters in their
communities.

Source: Forbes
 The downturn, saw a switch in pushing
growth from business customers to the
average consumer.
 For Young adults, a computer is an
indispensable part of their lives.
 “The more we get into social media, the more
we see the power of this group.”

Source: Forbes
 Facebook app lets Intel PCs donate processor power:
 The Facebook application allows the spare processing power
in a PC to be used to fight diseases and study climate change.

The massive amount of data crunching necessary for high level

research is often extremely expensive or not readily available--or
both.
 The semiconductor industry is dynamic, characterized by rapid
advances in technology and frequent product introductions.
 The life cycle of our products is very short, sometimes less than
a year.
 The industry thrives on the ability to compete depends on our
ability to deliver new microprocessor products with increased
performance capabilities and improved energy-efficient
performance at competitive prices.

 Competitors
◦ Advanced Micro Devices, Inc. (AMD)
◦ International Business Machines Corporation (IBM),
◦ Sony Corporation
◦ Toshiba Corporation

 AMD has been the primary competitor in the market segments

for microprocessors used in notebooks, desktops, and servers.
Notebook AMD and VIA

Netbook AMD, NVIDIA, QUALCOMM, and VIA

Desktop AMD and VIA

Server/Workstation AMD, IBM, and Sun Microsystems

Embedded AMD, Freescale Semiconductor, Inc., and

Texas Instruments Incorporated
Handheld QUALCOMM

Chipsets AMD, Broadcom, NVIDIA, Silicon

Integrated Systems Corporation and VIA
Flash Memory Hynix Semiconductor Inc., Micron,
Samsung Electronics Co., Ltd., SanDisk
Corporation, and Toshiba
Connectivity Atheros Communications, Inc.,
Broadcom, QUALCOMM
 AMD was a real threat with it‟s cutting edge
technology from 2003 to 2006.
 When Intel Launched its Core 2 Duo and Core 2
Quad family of processors, AMD was knocked out
of the market.
 AMD started giving more attention towards the
Entry Level and the Mid Level systems which
covered 63% of the market.
 As a result an increase of 2.2 percentage points in
the Market Share of AMD was achieved.

http://www.thei7.com/intel-vs-amd-marketshare/
 Thus AMD had an added advantage of
performance per Dollar spent after the processor.

 Intel wants to market performance while AMD

wishes to fight the duel with Cost as the weapon

http://www.thei7.com/intel-vs-amd-marketshare/
 Japan
Ordered Intel to eliminate discounts that had
discriminated against AMD. To avoid a trial, Intel
agreed to comply with the order.

 European Union
 In July 2007, the European Commission accused Intel
of anti-competitive practices, like include giving
preferential prices to computer makers buying most
or all of their chips from Intel, paying computer
makers to delay or cancel the launch of products
using AMD chips, and providing chips at below
standard cost to governments and educational
institutions.
 South Korea
 In September 2007, South Korean regulators accused Intel of
breaking antitrust law.
 In June 2008, the Fair Trade Commission ordered Intel to pay a
fine of $25.5 million for taking advantage of its dominant
position to offer incentives to major Korean PC manufacturers on
the condition of not buying products from AMD.

 United States
 New York started an investigation of Intel in January 2008 on
whether the company violated antitrust laws in pricing and sales
of its microprocessors.
 sued Intel, accusing them of bribery and coercion, claiming that
Intel bribed computer makers to buy more of their chips than
those of their rivals, and threatened to withdraw these payments
if the computer makers were perceived as working too closely
with its competitors.
 To compete in each relevant market segment,
using our core competencies in the design and
manufacture of integrated circuits, as well as our
financial resources, global presence, brand
recognition, and software development.
 Customer Orientation.
 Architecture and Platforms.
 Silicon and Manufacturing Technology
Leadership.
 Strategic Investments.
 Business Environment and Software.

Source: Intel form 10k, 2009

 Intel admits that the standard desktop PC is about dead compared to
newer phenomenon‟s like iPods and Blackberry‟s.

 If Intel is going to return to growth, they‟ll need to get into businesses

outside of their core.

 But How??

 Intel is enabling a new kind of experience on television he called "Smart

TV", where the Internet will be seamlessly integrated with broadcast TV,
personalized content, and search capability.

 The goal is to bring personal content, favorite websites and social

networks to the TV in a new way.

 Intel's vision is for a seamless cross-device experience for phones, cars

and the home, providing consumers with more consistency and
accessibility to their information.
 Smart TV : Intel wants to see the Internet seamlessly integrated with
broadcast TV, personalized content, and search capability.
 The goal is to bring personal content, favorite websites and social
networks to the TV in a new way.
 Virtualization and Many core :By 2015, Intel wants to be capable of
mass-producing what Rattner called "many-core" processors with
hundreds of processing cores, and to virtualize other parts of the
computer such as graphics controllers or storage.
 Operating Systems: MeeGo hosted by the Linux Foundation is
targeting a wide range of devices, including next-generation
smartphones, netbooks, tablets, mediaphones, connected TVs and
in-vehicle infotainment systems.
 Communication, Electronics and more:Intel is tossing out the old
model. Instead of remaining focused on PCs, he's pushing Intel to
play a key technological role in a half-dozen fields, including
consumer electronics, wireless communications, and health care.
 Automobile:
 Intel also highlighted work with HawTai*, a major Chinese car
maker that plans to use Intel Atom processors and MeeGo*
software for their in-car infotainment systems.
 Telecom:
 In addition, China Mobile*, the world's largest wireless
telecommunications company, will adopt Intel chips for targeted
platforms powering its wireless networks.
 China Mobile has been researching a new Radio Access Network
architecture that is intended to provide our broadband wireless
network the benefits of world class energy efficiency, reduced
total cost of ownership, and high performance
 Cloud Computing
 Davis outlined Intel's vision of applying the IT industry's compute
and cloud model to the telecom industry by consolidating
network workloads on a single architecture.
 Personal Energy Management:
 Smarter technology at home and at work can reduce and better
manage energy consumption. The company's goal is to apply
Intel technology in ways that empower consumers and small
businesses to make better energy choices.
 Energy:
 Researchers at Intel have invented a new wireless device to make
the collection of energy data easy and inexpensive for
consumers.
 An Intel-powered home energy display that when coupled with
the wireless energy sensor, would monitor performance,
recommend solutions for more efficient usages, set goals, and
reward success
 Intel Labs is looking at how to better coordinate charging times
to reduce peak loads, which would reduce the need to upgrade
local electrical distribution facilities and save significant amounts
of money.