The chipset venture was successful within Intel. However the top management considered the chipset venture to be a strategic support for the micro processor and not another new business opportunity. This article analyzes the…
The senior manager for Intel had realized during the 1990 that the PC bus hadn’t changed much in the past decade. The performance of the Intel Processor on the other hand had improved pretty rapidly. Moreover, their competitors, IBM and OEM were focusing more on survival than on research and development. It was amidst these circumstances that Intel Architecture soon formed a research group to develop technologies that would facilitate the acceptance of Intel’s microprocessors during early 1900s.
The chipset venture’s process model team comprised of Eric Mentzer, Randy Wilhel and Andy Beran. Intel was strongly focused on its core microprocessor business at that time and used matrix structure to co-ordinate the allocation of critical corporate resources to different business groups. The top down management of Intel was very strong. A major aspect of their structural context was the rule to allocate scarce manufacturing capacity. The margins in the microprocessors were very high which gave them complete priority in the allocation of scarce manufacturing resources.
There were a few key strategic leadership activities pursued by Smith in the Chipset Venture Development. Smith was smart enough to recognize the business opportunity associated with PCI. He realized that pursuing such a business opportunity would mean carefully linking the technology with the OEM’s customer needs. On the technical side, it was realized that PCI would be able to sustain graphics. They realized that graphics was the most important advantage for the PCI. They also figured out the pitfalls in the OEMs feedback system. Their capability in validating systems environment was very limited. They saw an opportunity there and jumped on it by working to develop their own system validation. They realized that this will give them a competitive edge over ...
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