aden their product line. Their reputation for innovation is among the best in the U.S. In fact, Intel was ranked third for its innovation in 1997.Strategic AlliancesAlliances expand the firm’s market coverage and competitive capabilities. It is essential that Intel develop a close relationship with other PC component producers, manufacturers, software developers, cable TV companies, media and telecommunications companies, and entertainment companies. Before the mid-1980s the structure of the old computer industry was aligned vertically, in which each company sold their products based on their own proprietary technology. They designed and built their computers themselves. Buyers had to commit to the whole package of one manufacturer. Since then, the computer industry is growing horizontally. Each product depends on another product. This is why it is important to collaborate with others. Products within each horizontal specialty should be compatible with other specialty products to make a powerful PC or other PC-based product.GrowthIntel has the ability to grow rapidly because of strong increases in market demand. The process of making PCs has changed with that of the past. Only a few PC makers produced the components inside of the PCs. Therefore, the demand for Intel’s products increased. Intel had the ability to grow rapidly because it responded quickly to market demand and had the capital and expertise to develop advanced powerful products faster than competitors.THREATSLooking at Intel’s external environment, there are some factors that create a threat to the company. Some of the threats Intel is facing are competition, slowdowns in market growth, and the bargaining power of consumers. Competition In 1997, Advanced Micro Devices (AMD) and Cyrix were the two major competitors that challenged Intel by cloning Intel’s microprocessors and marketing them at lower prices. This created a major threat to ...
