How to Take Share with Technical Support
By Rob DeRobertis
The Company knew that Intel had enormous influence in the industry so they capitulated on two of the three components, handing them to Intel and Microsoft. The Company instead focused just on the CODEC and related software (driver) integration expertise that PC makers would need. By relinquishing part of the bigger pie, they positioned themselves to capture a larger share of a smaller pie, but one that offered high customer value and was growing very rapidly.
Tactics
When Intel established AC’97 the biggest constraint to market acceptance was concern among PC makers about the new standard’s impact on the stability of the PC operating system. The Company made the investment to develop software expertise in supplying the Window synthesizer device drivers, working closely with PC designers over multiple product design cycles to dispel their fears about stability. Audio software driver expertise and Intel endorsement through the AC’97 initiative allowed the Company to establish direct vendor relationships with all four of the key strategic volume customers in the PC industry – Dell, IBM, Compaq and Intel’s own motherboard division (rather than sell to subsystem manufacturers in Asia where the Competitor reigned in market share).
