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Technology Stocks : Exodus Communications, Inc. (EXDS)
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To: Rupert who wrote (1335)10/4/1999 11:26:00 AM
From: ravi nair  Read Replies (1) of 3664
 
> there is also how successful the marketing is, and how
> successful the customer relationships are
> once accounts have been established. How much skill does
> Intel, a chip manufacturer, have in these areas?

Intel is not a contract chip manufacturer who makes chips for other companies to sell. Intel markets its chips (often defining the market), created its own brand name and the
consumer loyalty that comes with it.

Marketing is Intel's forte. The Intel Inside campaign which turned Intel from a component manufacturer to a brand name is just one example. And marketing is one of the reasons that Intel has been able to make the segmentation strategy successful, cutting off the bleed in the sub-1000 PC arena. You may argue that that was chip business and this is datacenter arena - hey! marketing is marketing...

Customer retention comes with quality, brand name and pricing. Intel is a dominant force in all three areas.

Exodus has a battle on its hands in the coming months...
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