Intel's Leadership Position in the Pc

Intel's leadership position in the PC architecture theatre is very much a de facto competitive advantage—the result of its long-term market dominance and market position, but not necessarily a result of superior strategy. One competitive advantage that has come about due to corporate strategy would be Intel's superior marketing and public relations machine, which is surely to be counted among its core competencies. By manipulating the public into believing it has a monopoly on CPUs (as discussed in the text), and simultaneously protecting itself from antitrust litigation by claiming that it is indeed not a monopoly at all, Intel has secured for itself the best of both worlds. Customers and investors alike trust Intel because of its product's stature and importance, yet trustbusters are kept at bay by the existence of tiny firms like VIA and AMD.

Intel's marketing clout is also impressive when it comes to merchandising. By initiating price wars with its poorer competitor, it successfully drives AMD out of certain markets. By charging a premium for Pentiums, it encourages a premium image, while still outselling and outpacing the Athlon. Meanwhile, Intel's marketers are hard at work behind the scenes, concocting exclusive deals with computer manufacturers, effectively cutting AMD out of the majority of the market.

But not all of Intel's power comes as a result of sinister marketing tactics. Intel has been, and continues to be, an incredible innovator in microprocessor and chipset technology. Leveraging its deep pockets, huge research staff, and decades of experience, Intel's manufacturing superiority is clearly both a distinct core competency and a competitive advantage few could ever hope to match. Intel is by far the largest microprocessor manufacturer, cutting costs via economies of scale and technological advances while producing increasingly higher quality