(BUS 13) Intel Corporation (A): The DRAM Decision (BP-256
The Intel case examines the DRAM, and to some extent
the entire semiconductor industry along with Intel's strengths,
their decision to exit a market, and the history of a dominating
company in the computer industry.
1. How have Porter's five forces evolved in the DRAM
industry from 1974 to 1984? What force is putting the most pressure
on Intel's DRAM profits? Where does Intel's DRAM strategy fit
in the Price/Features Matrix.
2. How important is the DRAM business to Intel? Why?
Has its importance changed over time? Compare the DRAM business
to Intel's other businesses with regard to manufacturing capacity,
research and development costs, revenues, and profits.
3. What is Intel's strategy? Has it changed since
4. What are Intel's core competencies in 1985?
5. Evaluate Intel's four options for the DRAM business
(p. 17 of the case). What should Intel do regarding DRAMs in 1985?
6. How should Grove implement his decision? What
problems could he anticipate?