Introduction. In regards to business practices, incentives are common tool used in negotiations. With that being said, Intel, a technology conglomerate, gave huge incentives to its customers for using computer-chip. Many would argue that Intel was wrong, while others would say Intel business practices were fair game. Below is a detailed report, discussing Intel actions.
Is Intel a Monopoly? As a company that owns majority of the computer-chip market, Intel is a “monopoly”. According to the textbook Business Ethics: Concept and Cases (Velaquez, 2014) Intel owned 90 percent of the market when they started their power trip. Furthermore, the company has managed to control 71% of the x86 technology market, as of 2011. To further support this claim,
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According to the casing study, Intel’s “Rebates” and Other Ways It “Helped” Customers Intel paid customer huge pay. As the dominating company, they purposely paid other companies not to use ADM products. They paid Dell 6 billion dollars over a 5 year period (Velasquez, 2014). In addition, they knew ADM would not be able to compete with them: they took advantage of their size and used their rebate program to try and ADM from advancing in the x86 processor industry. In addition, Intel’s monolply-like behavior is displayed in the terms of quality. They did not care about customers wanting the reliable x86 processors, they wanted to monopolize the market with their product, and would pay a huge amount of money to achieve their …show more content…
This is so, because they did not give their customers a choice; they said use our product exclusively and take our money. Another reason why Intel rebate program was unethical because, the customers suffered more. Once the customer took home their new computer, from Dell, HP, or any other of Intel customers they would not be able to use documents from a computer with the x86 processor technology. Besides, the customers suffering, Intel’s rebate program, was unethical because ADM lost business. For more than a decade, they did not get the business that might have went to them. Intel unethical payout cost them millions of dollars. Last but not least, Intel’s rebate program shows how one company will do anything to remain in power.
Was Intel Unethical in Regards to their Libraries and Compliers? Intel was unethical to use their libraries and compliers the way they did. According to Velasquez (2014), Intel use their libraries and compliers so files would not work on ADM computers. Intel decision is unethical because the consumer will not benefit. For example, a work from home individual buys a Dell computer with an Inter computer-chip and cannot view his or her files on their new computer to get their work done. This individual has wasted money and may be behind on their job. Intel has not only hurt their customer’s reputation, but are responsible for thousands of people having a low quality product.
Were Intel’s Rebates
Apple, being one of these monopolistic type companies, has had to deal with some scrutiny over t...
...ides PC manufactures that right, which is not limited to Internet Explorer but also serves other numerous software developers falling under the settlement’s description of middleware.
As stated before, Apple is a multi-billion dollar technology industry. The major competitors that Apple and its products is Microsoft and its Windows platform, as well as Google, and Samsung smartphones. All of these companies are in the top 10 global brands, according to Interbrand (2015). Comparing strengths of all companies, Apple has a solid financial support system and it is highly innovative because of the success of the products and the leadership of Steve Jobs, however what weakens Apple is the premium pricing of their products. Microsoft also has the solid financial support due to its leader, Bill Gates. Microsoft also has the dominance over the operating systems. Windows based applications are on almost all computers in the market
The existence of many large manufacturers in addition to the continuous entry by smaller manufacturers results in limited differentiation and decreased competitive advantage among PC manufacturers. All manufacturers have access to similar suppliers and therefore have the same buying power especially for processors which are sold at the same price to all manufacturers. It is clear that the competitive advantage in the PC industry is not sustainable as easy replication by competitors promotes price wars which lower profit margins for the industry as a whole. Ultimately, high competition and price fluctuations have led the PC industry to low profitability.
By 1984, a combination of factors had contributed to lowering the profitability of the DRAM industry. As the DRAM industry matured, DRAMs began to take on the characteristics of a commodity product (Burgelman, 1994; Burgelman & Grove, 2004). Competitors had closed the gap on Intel’s lead in technology development causing the basis of competition to shift towards manufacturing capacity. Gaining market share in an industries where product features had become standardized required companies to agressively pursue capacity expansion, while engaging simultaneously in cutthroat price competition. Also, with each successive DRAM generation, companies wishing to keep pace with the demand for increasing production yields were forced to commit increasingly large capital investments to retrofit their fabrication facilities. Figure 1 contains a snapshot of the DRAM industry between the periods of 1974 through 1984. The important thing to note is that Intel begins to fall behind the competition beginning with the 16K generation and is virtually non-existent in any of the future generations (Burgelman, 1994).
Intel's business grew a bit in the years to come as it got bigger and made improvements on the way that products were made, and produced a wider range/variety of those products. Even though Intel created the first publically available processor (Intel...
Akamai Technologies, Inc. is an organization which delivers the content over the Internet. It is one of the largest organizations which provide the distributive Computing Platforms; it provides a cloud based services to the end user. It serves 30% of the overall web traffic. Akamai provided numbers of servers which are located all over the globe and stores the web application of the clients. It provides a faster access to those applications because of the distributive contents in to various servers around the world. Akamai does not want the long routes to it distributed the data based on the locations, it works as like a work or a task which is not possible to be completed by a single persons is divided in to multiple process or threats or assign to teams to complete their individual part, so that task can be complete faster, in the same way the contents are stored at different servers based on their access mechanism.
With advanced technology being developed at a rapid pace, problems are beginning to surface. People are finding more efficient ways to get around certain barriers and to get what they want. But with these actions come consequences. Of course, not all of these actions are intended for immoral purposes, but when it comes to deontology, the outcome is out of the question. If the action is morally unacceptable, end of story. Since deontology puts emphasis on the morality of an action rather than the outcome of that action, it is safe to disregard the outcome in any situation that we are considering. There are many areas in which people tend to shy away from because of the portrayal of computing being unethical.
...ivacy as ethical. When Kevin Mitnick tried hacking into computers he ignored all the rules and regulations that one normally adheres to within society therefore his actions were deceitful and inappropriate.
We often dream of owning the best computers in the world. However, various options from the wide range of manufacturers tend to make it difficult to do a selection. Therefore, picking a reliable model that is stupendous is inevitable; a computer that even after four years, it will still be outstanding. Knowing the chances of its success is fundamental. This means that a good machine should break less often. Additionally, a company that has a great technical support, which helps a computer owner to receive timely and reliable customer support services. What is ignored are the outliers. There are companies that have had awful record of accomplishment of crappy and extremely expensive computers. One must ensure they purchase from established and genuine dealers.
Historically, personal computer companies produced most of the components for a computer which they assembled into their final products and distributed to resellers. The manufacturing of these components was vertically integrated into the organisation. Dell, as a small start-up, could not build this infrastructure. Instead, they developed a model where they developed relationships with organisations that could provide these components, allowing Dell to focus on selling and delivering computers. By selling directly to customers, initially through mail orders and later by using the internet, Dell avoided reseller mark-up. Dell also enabled customers to order customised computers, which Dell then assembled after receiving the order (Magretta, 1998, p.73-74). “Customers got exactly the computer they wanted and Dell saved money making the computers only when they were ordered” (Hill & Seggewiss, 2008)....
Apple captured many consumers after the launch of the iPhone and continued to devise innovative strategies by producing tablets. Customer loyalty increased for Apple as customer’s developed a commitment to Apple products. Jobs strategy was to use a long development cycle that produced at least one large innovation each cycle. Therefore,
From 1980 to 1996, Apple’s competitive range in the PC industry was rocky. Although Apples products were unique and well built, they were overpriced compared to competing products from IBM and others. As competitor prices dropped, Apple prices stayed the same and the company saw a decline in sales as customers opted to purchase from its competitors. John Sculley, former CEO of Apple, took many steps to improve the company’s competitive advantage. One of those steps was to compete with price by producing a low-cost computers that appealed to a mass-market. The second step was to form an alliance with rivals IBM and Novel in order to create new operating systems and applications...
The PC industry is just over 20 years old. In those 20 years, both the quality
...market share, Intel progressively reduced licensee and developed process and manufacturing infrastructure to manufacture chips by itself. Thus, it contained the “profit pool” in its value chain. Thereafter, successful tie-ups with ‘horizontal’ complementors like Compaq 7 Microsoft led to wrecking of IBM’s hegemony. With established leadership in microprocessor industry, Intel strategically started ‘Intel Inside’ and ‘Runs better on Pentium processor’ programs to improve brand recognition. As more and more end-customers identified Intel and microprocessor as the most important component in a PC, Intel could now command higher power and bargaining position with OEM and software manufacturers. This ensures demand-side control.