and research prowess. Intel’s brand name is a competitive advantage because it helps keep the sale of silicon chip clones from rivals down so that these companies do not erode Intel’s profitability and market share. If a company had a clone of equal performance, it would be easier for consumers to switch over if not for the power of brand name and awareness that keeps customers loyal. The strategy that Intel has is to increase the awareness and preference for its products. Research prowess is a competitive advantage for Intel. It has large amounts of capital compared to its competitors. For example, next year Intel will spend $3 billion on research and development, “which is more than AMD generated in sales in 1998”. Intel continues to produce innovative products faster than its rivals do in order to receive the lion’s share of profits so as to keep itself able to acquire the capital to produce these innovations.Test 3: Performance TestThe performance test ascertains if the company’s strategy is helping the company become profitable and help obtain long-term market position. Located in the Appendix are several profitability ratios for Intel from 1983 until 1998. In Appendix A-E are graphs representing this data? In Appendix F are the actual numerical data. After 1986 is when Intel changed its strategy to what it is presently. The data used to compute these ratios was from the Intel case in Strickland and Thompson’s Strategic Management 10th Edition. The 1997 and 1998 were compiled from data obtained from Intel’s homepage located at http://www.intel.com.Appendix A shows the gross profit margin. The gross profit margin has, since 1986, been steadily increasing and since 1990, has remained above fifty percent. This profitability ratio shows the amount of money that remains after making a product that is available for the company to utilize. This shows that the company is stro...