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“I hate AMD”. Though the sentence sums up the implicit desire of all the Intel employees, it came all-out in public when it flashed at a huge screen (in one of Intel’s technical show) as the password of Pat Gelsinger, Senior VP of Intel. While many just laughed at the incident, the more intellectual ones were compelled to wonder whether it is really necessary for a giant like Intel to give any consideration at all to the pint-sized AMD? A company which hopes to match Intel’s prowess in the PC arena with a miniscule 14% market share compared to the latter’s 80%? In this twenty odd years old David Vs Goliath battle, Intel has dominated the chip industry like a strict general who exactly knows how to master his sepoys. And in the process, it never paid any heed to the ruthless pains it gave to AMD, humbling it from plan to plan, chip to chip and quarter to quarter. Right from the introduction of Pentium processor, which was followed by AMD’s K6 chip, to the advanced versions like Pentium II, III, IV, followed by Pentium D processor and the latest core 2 duo processors (closely followed by AMD’s Athlon processors), Intel made sure that it would never allow AMD to get rid of its dreaded tag of being a laggard. It’s been Intel all the way in the high-end & mediumend range of processors; and only the low end processor market has been left open for AMD. Both have engaged in brutal price wars over this territory, but ultimately it’s AMD that’s paying the price! While AMD is reeling under its third straight quarterly loss for the quarter ending June 2007 (net loss of $600 million), Intel is grinning from ear to ear with a net income of $1.3 billion for the same quarter. Paul Otellini, the CEO of Intel exclaimed on the results, “Our operational execution continued to strengthen, resulting in an outstanding product roadmap & solid year-over-year revenue growth.”

While the dominance of Intel continues in the global market, AMD is once again trying to pose a challenge with its hyped quad-core code-named Barcelona. However, even this time, Intel did not allow AMD to make any impact as it has already introduced two more quad-core Xeon processors, the X5365 and L5335. A hapless AMD has also gone for legal recourse oft en, alleging that Intel has used unfair monopoly practices.

Similar is the aura around Craig Barrett, the Chairman of Intel, who has been associated with the company since1974, and has earned tremendous respect among employees for his authoritative & decisive leadership style. Also notable is his firm belief that Intel still has a long way to go as he admits, “We are like a brick manufacturer at the start of the construction of the Great Wall Of China. Intel delivers the basic building blocks that will be used in a massive worldwide infrastructure construction project for years to come.”

Indeed, despite it’s dominant position, Intel needs to devote maximum resources towards continuous innovation. And it has leveraged talent from all parts of the world, including India.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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