Platforms and networks - Intel’s relationships with its partners

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Olivier ARGAUT

Engineer, Corps des Télécommunications , Student, École des mines de Paris

Annabelle GAWER

Professor, INSEAD

Thierry WEIL

École des mines de Paris

Seminar Management of Innovation | Wednesday November 15, 2000

Several industries offer systems made up of a central platform on which numerous peripheral components are grafted. These components make the system both functional and very useful. These additional components are often produced by different companies, which have partnership deals with the platform producers. However, these relationships are unstable since the platform producers, with time, having acquired a sound knowledge of these peripheral products, are often tempted to produce them themselves. It is here that Intel, which makes microprocessors, got started in the production of web terminals and offered a range of services. There are many hypotheses regarding Intel’s strange strategy: is the strategy one of diversification of products; is it capturing the expanding market for networked terminals; is it the development of new uses to sell even more microprocessors; or is it reinforcement of the visibility of the brand ?

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