In 1985 Andy Grove The CEO of Intel was faced with a strange dilemma.

• Intel was not making much profit

• Production partners did more

• And customers preferred them

2 years later, everything changed. Here’s the story of strategy Andy calls monumental:

Lesson #1: Recognize the truths without deterring

Andy recognized that they were in a dilemma because the very strategy that has delivered success for Intel previously had turned heads over heels and created a new problem.

Andy grappled with this truth without deterring.

Lesson #2: Changed Context -> New Strategy

Old context: The computing market was still in its infancy -> grow the market (more producers, more growth)

New context: 5 years later the market was growing rapidly -> time to profit and he wanted to change that before Intel launched 386.

Lesson #3: Embrace complexity when change happens

This move did not resonate well with IBM the then-biggest customer, they relented for a second source. IBM went one step ahead and committed to producing its chipset.

With 4 years and USD 200m invested is this game over?

Lesson #4: Be relentless and find opportunities in crisis.

Andy took this opportunity to position Intel as the market leader instead.

He pursued market share leadership with an unlikely contender which was an underdog but with high potential: Compaq with Compaq's Deskpro 386.

Result:

2 years later IBM went back to Intel for 386 after the success of Compaq's Deskpro 386.

Grove said: “There is at least one point in the history of any company when you have to change dramatically to rise to the next level of performance”. And this was the moment for Intel.

TL;DR - 4 lessons I learned from Andy's strategy that made Intel monumental

• #1 - Recognize the truths without deterring

• #2 - Change the strategy if the context has changed

• #3 - Embrace complexity when change happens

• #4 - Be relentless and find opportunities in crisis