Before I start in on my opinion of Intel's business values. I would like, for my own benefit as much as anyone elses, to run through some basic business guidelines. These few, are to me, rules that all businesses must follow in order to be and remain successful.
1. All businesses have a product, whether it's an actual piece of hardware, or information (like Tom's site here). That product must be of high quality and priced comparible to competitors in order to sell. Reliability is a key factor in that it directly relates to law #2 and #3.
2. Brand or product loyalty is of paramount importance. This loyalty is gained and maintained by consistently producing a product that is reliable and performs as indicated. With product loyalty, repeat customers and repeat sales are generated resulting in greater profit.
3. No amount of advertising money can outpace the "<i>Word of Mouth</i>" effect. The "<i>Word of Mouth</i>" effect is as simple as it sounds. A pleased customer passes on his or her opinion to a potential customer resulting in a sale. In essance, a single pleased customer creates a pyramid of positive advertising that can grow exponentially. Someone who is pleased to the point of enthusiasm about a product, is the most valuable sales associate a business can have.
4. Customer care is priority. (This relates to brand loyalty directly) The customer is to be kept well informed with correct information at all times. Questions are to answered promply and curteously.
5. If mistakes are made on part of the business, they are to be corrected immediately. Admitting a mistake to a customer before they realize there is a mistake is crucial. The advent of the internet has made false advertising a precarious venture. Chances are better then not that the truth will be exposed, and this done in a short time.
6. Employees are to be treated with the utmost of respect. Their compensation should match or beat those of the business' competitors and work envirments should likewise be better. The age old anthem that a happy worker works better is true. People will do their job and put their best effort forth if they know they are being paid the best and valued the most by their employers. Ask the many multi millionares that Microsoft has produced. An associate who is proud and excited about their work will relate this way to a customer. You can't expect a customer to get enthusiastic about a product when the associate portrays less then delight.
I could probably go on and on with basic rules of business that are taught in any entry level college course. I chimed in a few off the top of my head that I think apply the strongest to both the information business, and the computer hardware business. I'll breifly sum up why I see Intel at a loss in each area.
Point one relates directly to the price point of Intel's product. New hardware always comes at a greater price, but not necessarily an astronomical price. For Intel to pit the PIII against the Athlon, they would have to match it in price or atleast close the gap considerably. For Intel to pit the PIV against the Athlon, they would have to take the chip off the market and wait 6 months to a year for a time when a profitable release would be feasable. Intel supporters will balk at that statment for sure, but read on.
The reason for the PIV retraction extends directly to point #2. (This is all by the wayside, we know Intel will never retract the PIV) Brand loyalty is of utter importance when dealing in a business where the average upgrade takes place once a year. If Intel is going to release a product, it had better perform well on what its current customers are already using or else it will lose their business to a competitor. Whether their product is positioned for the release of future software or not, it has to perform as expected now. Continued performance increases should be expected as optimized software materializes. If your product is positioned to only use these new optimizations, then they need to be in place before the product is released. This is especially important when touting lines such as "The Fastest". As mentioned above, consumers are more aware then ever before because of the internet. It is much harder to pull the wool over the public eye now then it was even 2 or 3 years ago. There is simply too many sources of free information on the web with too many people plugged in for the holes in false advertisment to not be seen.
On to point #3. This is proven in the success of AMD. They have an almost non-exhistant advertising campaign yet have managed to snag the market share from Intel. This is because of word-of-mouth. People like you and I who read sites like this, talk to those we know and share our knowledge. If a better product is out there for a cheaper price then there is reason for a customer to be excited about a perchase. This enthusiasm carries over into everday daily conversations that directly influence a customers decision. I truly believe that if AMD had any sort of positive public relation campaign active, they would have much more market share then they have. The mass marketing muscle that Intel and their direct associates such as Dell have, is the only thing that I believe keeps mass amounts of consumers from leaving thier Intel loyalty.
Now onto my whole reason for writing this short book. I don't want to cross over into a religious or philosophical debate, but I do believe there are certain morals and ideals that remain constant through society. You don't kill, you don't steal, you don't cheat, you don't lie. Basics. In business there is a same logic. Put the customer first because they are the ones who put the bread on your table.
Intel has shown time and time again that they don't value their customers. The pushing of Rambus is the first example I'll mention. The second is the PIV. These are blatant backings of inferior products for astronomical prices. The reasons these sold were because of Intel's position and pull with tech community. This is a cheating of the customer and those who became aware of their computing choice afterwards will forever have a bad taste in their mouth. If Intel continues on its road of underhand dealings and skullduggery, they will lose. Despite where they stand now, giants do fall. Intel still leads in market share, but with every step they take back, AMD takes two forward.
I'll close with this. For Intel to be successful they need to deliver a quality product at competitive prices and performance. They need to drop the idea that consumers are idiots (plainly expressed in their advertising campaigns) and try to gain their lost respect. As a business they have lost those that are tech savy, and the tech savy influence, by word-of-mouth, those who aren't so knowledgeable. The positive cycle that personal opinion can create also works backwards and can spyral public opinion to dismal levels. I don't want to see Intel out of business, competition is good. I just want to see Intel run their business honestly and with good faith. Something they haven't been doing for a very long time.
1. All businesses have a product, whether it's an actual piece of hardware, or information (like Tom's site here). That product must be of high quality and priced comparible to competitors in order to sell. Reliability is a key factor in that it directly relates to law #2 and #3.
2. Brand or product loyalty is of paramount importance. This loyalty is gained and maintained by consistently producing a product that is reliable and performs as indicated. With product loyalty, repeat customers and repeat sales are generated resulting in greater profit.
3. No amount of advertising money can outpace the "<i>Word of Mouth</i>" effect. The "<i>Word of Mouth</i>" effect is as simple as it sounds. A pleased customer passes on his or her opinion to a potential customer resulting in a sale. In essance, a single pleased customer creates a pyramid of positive advertising that can grow exponentially. Someone who is pleased to the point of enthusiasm about a product, is the most valuable sales associate a business can have.
4. Customer care is priority. (This relates to brand loyalty directly) The customer is to be kept well informed with correct information at all times. Questions are to answered promply and curteously.
5. If mistakes are made on part of the business, they are to be corrected immediately. Admitting a mistake to a customer before they realize there is a mistake is crucial. The advent of the internet has made false advertising a precarious venture. Chances are better then not that the truth will be exposed, and this done in a short time.
6. Employees are to be treated with the utmost of respect. Their compensation should match or beat those of the business' competitors and work envirments should likewise be better. The age old anthem that a happy worker works better is true. People will do their job and put their best effort forth if they know they are being paid the best and valued the most by their employers. Ask the many multi millionares that Microsoft has produced. An associate who is proud and excited about their work will relate this way to a customer. You can't expect a customer to get enthusiastic about a product when the associate portrays less then delight.
I could probably go on and on with basic rules of business that are taught in any entry level college course. I chimed in a few off the top of my head that I think apply the strongest to both the information business, and the computer hardware business. I'll breifly sum up why I see Intel at a loss in each area.
Point one relates directly to the price point of Intel's product. New hardware always comes at a greater price, but not necessarily an astronomical price. For Intel to pit the PIII against the Athlon, they would have to match it in price or atleast close the gap considerably. For Intel to pit the PIV against the Athlon, they would have to take the chip off the market and wait 6 months to a year for a time when a profitable release would be feasable. Intel supporters will balk at that statment for sure, but read on.
The reason for the PIV retraction extends directly to point #2. (This is all by the wayside, we know Intel will never retract the PIV) Brand loyalty is of utter importance when dealing in a business where the average upgrade takes place once a year. If Intel is going to release a product, it had better perform well on what its current customers are already using or else it will lose their business to a competitor. Whether their product is positioned for the release of future software or not, it has to perform as expected now. Continued performance increases should be expected as optimized software materializes. If your product is positioned to only use these new optimizations, then they need to be in place before the product is released. This is especially important when touting lines such as "The Fastest". As mentioned above, consumers are more aware then ever before because of the internet. It is much harder to pull the wool over the public eye now then it was even 2 or 3 years ago. There is simply too many sources of free information on the web with too many people plugged in for the holes in false advertisment to not be seen.
On to point #3. This is proven in the success of AMD. They have an almost non-exhistant advertising campaign yet have managed to snag the market share from Intel. This is because of word-of-mouth. People like you and I who read sites like this, talk to those we know and share our knowledge. If a better product is out there for a cheaper price then there is reason for a customer to be excited about a perchase. This enthusiasm carries over into everday daily conversations that directly influence a customers decision. I truly believe that if AMD had any sort of positive public relation campaign active, they would have much more market share then they have. The mass marketing muscle that Intel and their direct associates such as Dell have, is the only thing that I believe keeps mass amounts of consumers from leaving thier Intel loyalty.
Now onto my whole reason for writing this short book. I don't want to cross over into a religious or philosophical debate, but I do believe there are certain morals and ideals that remain constant through society. You don't kill, you don't steal, you don't cheat, you don't lie. Basics. In business there is a same logic. Put the customer first because they are the ones who put the bread on your table.
Intel has shown time and time again that they don't value their customers. The pushing of Rambus is the first example I'll mention. The second is the PIV. These are blatant backings of inferior products for astronomical prices. The reasons these sold were because of Intel's position and pull with tech community. This is a cheating of the customer and those who became aware of their computing choice afterwards will forever have a bad taste in their mouth. If Intel continues on its road of underhand dealings and skullduggery, they will lose. Despite where they stand now, giants do fall. Intel still leads in market share, but with every step they take back, AMD takes two forward.
I'll close with this. For Intel to be successful they need to deliver a quality product at competitive prices and performance. They need to drop the idea that consumers are idiots (plainly expressed in their advertising campaigns) and try to gain their lost respect. As a business they have lost those that are tech savy, and the tech savy influence, by word-of-mouth, those who aren't so knowledgeable. The positive cycle that personal opinion can create also works backwards and can spyral public opinion to dismal levels. I don't want to see Intel out of business, competition is good. I just want to see Intel run their business honestly and with good faith. Something they haven't been doing for a very long time.