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Technology Stocks : Intel Corporation (INTC)

INTC 35.53

-1.1%

Nov 14 3:59 PM EST

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To: Road Walker who wrote (44204)	1/7/1998 1:04:00 PM
From: Harry Landsiedel	Read Replies (1) of 186894

John Fowler. Re: "EVENTUALLY, the finished goods manufacturers (the box makers), would win the brand equity in the PC product category." Does it have to be either/or? Can't Intel and CPQ both have strong brand equity for what they stand for? I once heard "Brand" defined as, "the sum of all the promises made and kept between a maker and the consumer." Using that definition BOTH Intel and CPQ make promises to the consumer. They exist as separate brands who build their own equity with consumers. Could the best analogy be the gas you use in your car. Do you think you have a better Buick because you use Exxon Gasoline? Following that analogy, INtel has to convince consumers that the CPQ ownership experience is better with Intel than the experience with AMD or Cyrix. BTW I think the analogy with Exxon may work on another level too. Just as Standard Oil won the gasoline wars by having the funds to invest aggressively in more capacity, Intel has the same strength in microprocessors. In this sense selling chips in ALL segments is the right one for Intel IMHO. HL

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