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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Casaubon who wrote (54782)	3/2/2006 1:32:31 PM
From: TigerPaw	Read Replies (2) of 54805

I think Intel got caught by their own strategy. It is a strategy of large companies, not necessarily gorillas but one that gorillas often try to use. The strategy is to make a product unessicarily complex. The idea is that only a company with great resources can afford to keep up with all the problems caused by the complexity. If it works, it provides an even greater barrier than patents because the complexity does not expire after a few years. One of the problems with ever smaller but greater microprocessors is that the package can only be shrunk so small because of all the pins it has to have. This was known to be a looming problem but Intel the Gorilla and AMD the Chimp took characteristic different approaches to the solution. If you can't send the signals side by side, then you have to send them one after another. AMD spearheaded an open endeavour for a simple but fast serial solution that all of it's partners could agree with, and implement. They had to give away any royalty potential for HyperTransport because a Chimp has little leverage with suppliers. About the same time Intel sought and obtained what seemed to be the most subtle but complex serial interconnect on the planet - Rambus. Not only would this give Intel current patent barriers, but the thousands of engineering hours that they had to devote to just working with the technology would provide a lasting barrier to anyone who tried to piggyback on their turf without authorization. The trouble is that in the end it was just too difficult, even for a Gorilla sized company. Intel still has chips which have to have a lot of pins.

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