Intel Corp. (A): The DRAM Decision

Focuses on the decision Intel's top management faces at the end of 1984 of whether to exit the DRAM (dynamic random access memory) business. Discusses the evolution of Intel's distinctive technological competencies and of the critical linkages between its corporate, technology, marketing, and manufacturing strategies. Examines the effect of apparent industry structural changes on the relative importance of different technological competencies and the linkages between corporate, technology, marketing, and manufacturing strategies. Intel was the first successful mover with DRAM products, yet it finds itself with an inconsequential market share at the end of 1984. While the organization still believes that DRAMs are critical both from market and technology viewpoints, DRAMs have actually played a minor role in Intel's product mix in the past five years. Logic products based on microprocessor technology have replaced memory products as Intel's core business. Leads to discussions about the implications of organizational beliefs on technology and manufacturing strategy and top management's role in evaluating those beliefs during changing times.