Ben Wise on Branding

Watching the world through the lens of the brand

Intel’s Brand Investments

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Intel has announced that they are leading a new initiative called Invest in America Alliance. This group’s mandate is to help the US maintain their technological supremacy in the face of rising competition from abroad. The project is expected to bring 10,500 new jobs and $3.5 billion of investment to American tech companies.

The merits of the initiative can be debated, but the message from the Intel’s brand is clear: we are a world leader in technology and innovation. This brand promise is especially compelling in this category, providing a distinct advantage. While most people can’t tell you the difference between chips made by Intel or AMD, people still prefer Intel based on their strong brand.

Establishing this brand has not been easy for Intel. It has taken years of commitment to technological innovation. It has no doubt been tempting to cut R&D spending and enjoy the cash inflows from their existing products. Instead, Intel has opted for Creative Destruction – the process of destroying old technologies by developing new and better ones that take their place. Had Intel strayed, AMD or others would have been given the opportunity to catch up.

The Invest in America Alliance is the latest investment Intel has made to establish their brand as the leader in the market. If you look at their income statements over the past few years, you will see a continual increase in their R&D spending. Even during a recession as revenues fell, the Intel brand was reliant on their commitment to R&D.

It is brands like Intel that make a continued and public commitment to their brand that are able to maintain their market leadership position.

What do you think? What other brands make this type of public commitment?

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Written by benwisebranding

February 25, 2010 at 1:33 pm

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