Understand the issue before speaking.



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送交者: skipper3 于 2006-4-04, 18:31:22:

回答: [ZT]龙芯二号增强型CPU性能已达中低档奔四水平 由 妖魔 于 2006-4-04, 17:13:56:

You ask why Dragon chip has not made to the market. To answer this question you should first understand that the only purpose to be a market player is to succeed, measured by profit.

Now let's see what are the success factors in the market place. Since everyone is comparing dragon chip with INtel and Intel has been studied to death we can just see what are the key success factors of Intel.

Number one: Industry standard. Rational consumer won't buys things that they feel having uncertain future. One way for them to hedge such uncertainty is to buy product that comply with widely accepted standard. Needless to say Intel is the standard in the market, although this is not something intel brings particular value to the consumer, it is an entry barrier invented by Intel to fend off competition. One can't blame Intel though, after all it was them who invented personal computing market. This is what people called first mover advantage.

Number two: Technology and product performance. You LiKe all know that. But I assume you all as well know that performance sometimes is not very important. Consumers often sees value not in the performance but somewhere else.

Number three: Efficiency. People often think Intel succeed in technology. In fact efficiency is more important. They are extremely good at cranking out high quality products at low manufacturing cost(don't confuse manufacturing cost with retail price).

Number Four: Brand loyalty. Intel had not been a high flyer for many years, until "Intel Inside". Only after "Intel Inside" it became the dominant player in personal computing market. Before the majority of profit went to PC makers and chip makers. But by placing this little sticker on the box Intel successfully took away the branding power from PC makers and built customer loyalty around the chip not the box, and turned PC makers from cash cow into sweatshops in only couple of years.

Number five: Scale. Chip design and manufacturing involves extremely high fixed cost. Whithout scale it is impossible to develop any cost and price advantage. After all, the difference between price and cost defines success. That's the bottom line.

Number six: R&D capabitlity. From SuanZhang point of view this not measure by number of designers but amount of capital a company is able to allocate and manage in R&D and marketing. No company can match Intel on amount of cash a company is able to investing R&D.

Now how many of these factors does Dragon chip have? The value of dragon chip as far as I can see is not in competing with Intel, but rather a hedge of strategic risk of the opposite: when INtel would be no longer in the market for some reason.



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