[Recorded: January 26, 2009]
Under the leadership of Andy Grove and Gordon Moore, the personal computer market changed in October 1985 with the launch of the Intel 80386 microprocessor. Today, no one will dispute that Intel is a world-leading company, but few recall that Intels path to becoming a technology giant was solidified by an unprecedented business strategy. In this lecture Harvard Business School Professor and CHM Board Member Richard S. Tedlow presents and reviews Intels sole-source supplier business strategy.
Learn how Intel forever changed the landscape of the computing industry with its decision in the mid-1980s to act as the sole source for its revolutionary 80386 microprocessor. Prior to this risky and unorthodox move, companies would second-source products by licensing their technology to competitors the way it was always done. The 386 microprocessor marked the end of second-sourcing and the beginning of Intels leadership as a components-supplier in the personal computer market. But why was this significant and what did it mean to the future of the microprocessor and the future of personal computers?
Professor Tedlow presents the business case, as taught in his Harvard Business School classes, to describe how these important decisions were made and what valuable lessons we can learn from Intels industry-changing business choices.