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INTEL Knows Best? A Major Marketing Mistake Problem Statement When Thomas Nicely, a mathematician at Lynchburg College in Virginia, first went public with the fact that Intel's new Pentium chip was defective Intel admitted to the fact that it h ....

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... of 'father knows best' fostered by Intel created an uproar among users and owners of the defective chips. Six weeks after Mr. Nicely went public, IBM, a major purchaser of Pentium chips, stopped all shipments of computers containing the defective Pentium chips. Intel's stock dropped 5% following this bold move by IBM. IBM's main contention was that it puts its customers first, and Intel was failing to do this. Intel's handling of this defective chip situation gives rise to many questions. During the course of this paper I will address several of them. The first of which is how did a company with such a stellar reputation ...