CASCADING - Analysis of Previous Issue Case
Identifying and creating new markets - a new strategy for a global leader (Case Analysis)
However, the market segment is constantly changing, so Intel needs to develop new strategies. The market segments in which Intel competes are becoming increasingly competitive' sales of desktops are falling, whilst sales of laptops, mobiles and other handheld devices are increasing.
Intel aims to develop integrated packages - platforms - to provide complete solutions to its key customers such as Sony and Philips. Intel's strategy is to be at the heart of new technological developments in all areas such as home entertainment, security and medical care that will generate new revenue streams.
When an organization changes, it is important to communicate that change to all stakeholders. On January 5th 2005 Intel launched its new strategy at the Las Vegas Consumer Electronics Show. Part of the new strategy is a new logo, redesigned to show that Intel is moving forward. Intel's message is that it is at the leading edge of technology development, creating the right products before its competitors do.
Intel predicts trends and developments in the market segment. It also uses customer focus groups to test its predictions. New product development involves high levels of investment, so it is important to get it right. Intel was a founder and sits on the Board of Directors of the Digital Living Network Alliance, which aims to create joint standards and increase interoperability. In 2006 Intel is rolling out a series of new products. One of these is a home entertainment platform that brings together film, TV, music and games.
Intel's new strategy has a strong focus on marketing - finding out what customers want and then providing it. Clear communication is the key to this. The company has been completely restructured to reflect the emphasis on communication. It has reorganized into four sectors to reflect the four parts of the market segment. These are notebooks, PCs, servers and wireless technology.
Intel has also increased its range of end customers to include, for example, mobile phone companies and hospitals. New product development focuses on specific market segments, for example in healthcare or entertainment, and provides specific solutions.
Intel has recognized that the market segment is changing. It has therefore developed new strategies to keep itself at the leading edge of that market.