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Case Study

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16 views11 pages

Case Study

Uploaded by

Vats Raj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Are You Future Ready ?

"Innovation Stalled: Intel's Journey from Dominance to


Competition"

• Intel has long been a leader in the semiconductor


industry, known for its innovation and market
dominance.
• Gordon Moore co-founded Intel and became CEO in
1975.
• By the early 2000s, Intel was a household name,
synonymous with computer processing power.
• Key products like the 386 and 486 processors solidified
Intel's dominance in the PC market
• “Only the paranoid survive” – Andrew Grove
Strategic Inflection
Point Intel Nvidia AMD TSMC

Failed to capitalize on Adv. manufacturing


Mobile Revolution mobile chips N/A N/A capabilities

Struggled with 10nm


Manufacturing and 7nm process Partnered with TSMC Benefited from Intel's Led the industry in
Process Delays delays for cutting-edge GPU delays by using TSMC 7nm and 5nm chips

Holding over 90% Developing AI chips manufacturing


Artificial Intelligence Underestimated market share in data- but still trailing Nvidia expertise for AI chip
(AI) Market GPUs for AI center GPUs. significantly. production
Improved strategic focused on advancing
strong leadership and focus with successful semiconductor
Leadership and poor leadership and strategic focus on AI product launches like manufacturing and
Strategic Focus strategic mistakes and GPU markets. Ryzen and Radeon. expanding capacity.

Underinvestment in Slow to adopt EUV Invested heavily in Leveraged open- Pioneered EUV
Key Technologies lithography R&D for GPU & source frameworks lithography adoption
Financial Impact on Intel

• Intel's market share has declined as competitors have


gained ground.
• Intel earnings reported ending second quarter 29-jun-
24:--
• sales was USD 12,833 million compared to USD 12,949
million a year ago.
• Net loss was USD 1,610 million compared to net
income of USD 1,481 million a year ago
• In contrast, Nvidia's market valuation has soared due to
its strategic focus on AI and data-center technologies.
Key Learnings from Intel's Downfall

1.Adapt to Market Shifts:- Businesses should continuously monitor


market trends and be willing to pivot strategies to align with
emerging technologies.
2.Invest in Innovation:- Consistent investment in R&D and cutting-
edge technologies is crucial to maintaining a competitive edge.
3.Strategic Partnerships:-Building strategic partnerships can
provide access to new markets and technologies.
4.Focus on Core Competencies:- Companies should focus on their
core strengths while leveraging partnerships for other
capabilities.
5.Leadership and Strategic Vision:- Strong leadership with a clear
vision is essential for navigating complex market dynamics.

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