Despite the success of its Pentium chips, Intel faced a major threat from competitors such as AMD's K6 chips, which were cheaper and better placed to serve the emerging low-cost PC market. Intel wanted to protect the brand equity and price premium of its Pentium microprocessors, but it also wanted to avoid AMD gaining a foothold into the lower end of the market. So it created Celeron as a cheaper, less powerful version of its Pentium chips to serve this market. This is a notable example of a

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This is a clear example of a fighting brand strategy, which involves creating a sub-brand or product line to compete directly with a lower-priced or inferior competitor. Intel created the Celeron to "fight" against AMD's K6 chips by offering a cheaper alternative in the low-cost PC market without risking damage to the Pentium brand's reputation and price premium.

Despite the Success of Its Pentium Chips, Intel Faced a Major