Pricing strategy subj

Intel Rebates Case Exercise On July 28, 2007, the European Commission (EC). an antitrust authority, accused Intel Corp. of abusing its market dominance over rival Advanced Micro Devices (AMD) in the chip market. After conducting an investigation, the European Commission leveled a $ 1.06 billion fi ne against Intel on May 13, 2009. intel felt it had followed the law and believed the claims against it were false. As such, Intel chose to appeal to the European Court of First Instance. Read the following reference articles concerning intel and the European Commission's investigation (listed under item 10) and address the following questions: 1. What were the allegations against Intel regarding its rebate program? 2. What were the positive commercial purposes of Intel's rebate program in terms of generating sales for Intel? 3. What were the positive and negative commercial aspects of Intel's rebate program for its customers? 4. What were the negative commercial aspects of Intel's rebate program for its competitor, AMD? 5. Was Intel's rebate program an abnormal practice for industrial firms? 6. In light of your research and analysis, what advice would you provide a CEO of an industrial firm regarding rebate programs specifically, and price structures that cannot be matched by competitors in general? 7. When should a firm use a legal price structure that cannot be matched by competitors, and when might it avoid such a price structure even if it was anticipated to improve profits