Intel Case - Robert Andersen Nguyen Bui Mike Burton Reed...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Robert Andersen February, 23, 2011 Nguyen Bui Mike Burton Reed Crandall Intel Case Study 1. Why has Intel been so successful in recent years? What are the pros and cons of Intel’s current competitive position? One of the major competitive advantages of Intel is that they have an extremely low debt ratios ( 33.8% in 1990, 36.2% in 1989, 41.4% in 1988) and have been able to keep a high level of financial freedom. This freedom has allowed them to simply dip into their reserves whenever they want to do anything (such as the 4 steps they are implementing to fight back against imitations in the early 90’s.) The low debt has allowed them to ‘ride out the storm’ when hard times come. Intel has been successful because of their large amount of spending in R&D. They basically are the technology curve. However, one disadvantage is that by the time their product has reached the high sales point, their competitors have created a cheaper, more efficient version of the same thing at a lower cost. These clones steal Intel market share. That basically means that Intel needs to spend more and more to stay ahead of its competitors. It also means that Intel spends much more than its competitors for R&D because they are the ones who originated the technology. In addition to all of this, they have become so large that they have become ‘the port of choice’ for many companies who build software and other hardware to be compatible with Intel products. This is advantageous because it limits the power of their competitors. On a side note, since they have so much cash, one might question how efficiently they are
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/22/2011 for the course FINANCE BUS M 401 taught by Professor Taylornadauld during the Winter '11 term at BYU.

Page1 / 3

Intel Case - Robert Andersen Nguyen Bui Mike Burton Reed...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online