The structure of the value chains and value distribution in the microprocessor industry in 1981 and at the end of the case Microprocessor industry structure is not static and the actions of the different players deeply influence its evolution. Intel�s strategic moves from 1981 up to date have not only shaped the nature of competition in the industry but also changed the value chains and value distribution in the industry as a whole. In early 1980s the microprocessor industry was splintered into an array of specialty companies. Each dominated a different part of the value chain: chips, disks, distribution, software, customer service, etc. The value chain was also characterized by a few huge buyers, such as IBM and Apple that can exert substantial power over microprocessor producers. In order to win the deal with IBM, Intel is forced to open the standards for microprocessors. This period is, thus, characterized by relatively high number of competitors and, primarily, competition on uniqueness. In late 1990s state-of-the-art manufacturing processes, alongside with branding, drastica......

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