Case Analysis

1253 words, 6 pages

Intro Sample...

Case 1 Write Up
Intel’s Site Selection Decision in Latin America
According to the reading Intel’s Site Selection Decision in Latin America, it is well-known that Intel had a dramatic rate of growth in computing market after the contract between Intel’s first microprocessor. In order to maintain this competitive advantage and the innovation, the founder of Intel, Gordon Moore created the strategy based on the Moore Law, which was the power of microprocessors would double every 18 months if it was driven by the competitive market forces. To make the strategy above successfully, Intel needed to open the new plan at a rate of almost one every nine months. Also, this new plant need to have costs, such as labor costs,... View More »

Body Sample...

An illustrated example is combative labor unions in Costa Rica. While one was the government’s establishment of a national collective bargaining system, using wage boards to establish wage levels, which eliminated an important role for such unions; another was that unions could call a strike only if 60% of affected members signed a petition in favor of doing so, and a judge decided that the reason for the strike was valid. And during the time waiting for the decision, the employers could fire any workers who were involved.
Infrastructure is the next element that Intel selection team should concern about, which is specific on transportation, cost, and electrical supply. The main problem was Intel would need to export all of its chips by air, therefore, they need valuable flight price and distance, and also a good ground transportation to deliver material on time. However, In Costa Rica, the airport did not offer sufficient daily flights, or in Chile, the amount of travel time from the United States to Santiago was almost 12 hours, which was a really long flight. Also, the cost for electrical energy in Costa Rica was between $0.07 and $0.09 per kilowatt-hour, which cost more that Mexico’s rate of $0.02 per kilowatt-hour.
Last but not least, the government incentive is of equal importance. There would be three questions that Intel manager should ask itself while researching about emerging markets, such as how these incentives affect to Intel, whether or not those government would keep those agreements, and how government’s willingness to support Intel is. And these ...

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