Intel Corporation’s 80386 microprocessor is the chip of choice for IBM and IBM compatible computers. Microprocessor functions as personal computer’s (PC’s) brain. Intel’s virtual monopoly of the micro processing industry stems from microcode patent, brand name identification and reputation for technological innovation. Advances in processing speed and reduction in price of Intel’s microprocessors have resulted into drop in prices of PCs. But, Intel’s monopoly is facing challenges. First, replica of 80386 with different circuitry has been developed through reverse engineering in chip market. Second, many micro devices companies have been allowed to develop their own microprocessors as competitors to 80386. Intel is trying to maintain its monopoly by producing better chips. Its new microprocessor will run 51% faster and price will be 34% less than previous versions. Suggest most effective ways to preserve monopoly by Intel. What should they do?
Intel Corporation’s 80386 microprocessor is the chip of choice for IBM and IBM compatible computers. Microprocessor functions as personal computer’s (PC’s) brain. Intel’s virtual monopoly of the micro processing industry stems from microcode patent, brand name identification and reputation for technological innovation. Advances in processing speed and reduction in price of Intel’s microprocessors have resulted into drop in prices of PCs. But, Intel’s monopoly is facing challenges. First, replica of 80386 with different circuitry has been developed through reverse engineering in chip market. Second, many micro devices companies have been allowed to develop their own microprocessors as competitors to 80386. Intel is trying to maintain its monopoly by producing better chips. Its new microprocessor will run 51% faster and price will be 34% less than previous versions. Suggest most effective ways to preserve monopoly by Intel. What should they do?
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