(BUS 13) Intel Corporation (A): The DRAM Decision (BP-256 A)

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.

Study questions:

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 1968?

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? Why?

6. How should Grove implement his decision? What problems could he anticipate?

Stn_Intl.doc 5/5/98