Intel Case Study

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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,…show more content…
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

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