Intel Corporation (C) Strategy for the 1990's

This case presents Intel’s strategic situation after the 1985 decision to exit the DRAM (dynamic random access memory) business. The decision marked a critical transition point for Intel since the company invented DRAMs and had historically viewed itself as “the DRAM company.” The case explores the subsequent evolution of the company and provides the student with the context to consider critical strategic issues facing the company in 1990. The case focuses on technology strategy and its evolution through the company’s history, but its also develops key themes of corporate strategic renewal and the relationships between the company and its environment. The major themes of the case concern: The DRAM situation in 1990. The rationalization of technology strategy with changing industry dynamics and paradigms. The continuing implications for corporate strategy of tensions between commodity and proprietary businesses: EPROM and Flash. Changing modes of corporate entrepreneurship and strategic renewal: RISC versus CISC, Flash. Forward integration and the future of Intel.