Intel is one of the world’s most valuable brands and is valued at around $35 billion. Most of the world's personal computers are driven by Intel microprocessors. By concentrating on producing great microprocessors Intel was able to leave its competitors behind. The company invested billions of dollars in highly productive manufacturing plants that could produce more processors in a day than some of their rivals could produce in a year.
Today Intel is continuing to raise the bar. In January 2006 the company launched its new strategy based on identifying and creating new markets. Instead of just focusing on personal computers (PCs) Intel will play a key technological role in a range of fields including consumer electronics, wireless communications and healthcare.
Intel's new strategy is to create lots of different types of chips and software and then combine them together into platforms. A platform is an integrated set of proven technologies designed to work together. They provide people and businesses with improved communications and computing capabilities. These platforms will enable Intel to bring added value for consumers, win a larger share of consumer expenditure and increase revenue.
Platforms will make life easier for people in a range of settings from the home, to business, and medical settings. Intel's vision involves giving people access to easy-to-use technologies through these platforms. It is seeking to continually satisfy customer requirements by producing a range of new and exciting products.
A key part of Intel's more integrated platform strategy also involves the development of several technologies. These improve processor efficiency and allow computer users to take better advantage of:
• wireless computing capabilities.
Systems are continually updated giving the user greater freedom. Intel's strategy is to be at the heart of new developments in home entertainment, security, medical care, etc. The new strategy continues the emphasis on producing excellent products. However, there is now a strong focus on marketing - finding out what customers want and then meeting their requirements. Customers need to know what these new products can do for them. Clear communication is therefore essential. The company has been restructured from top to bottom affecting over 90,000 employees. The emphasis is on marketing and communicating with customers about what the new technologies can do for them. It now has four parts to reflect the four parts of the market segment. These are:
New product development focuses on specific markets. For example, in hospitals paper records are replaced with electronic tablets giving immediate access to patient records, appropriate drug prescriptions etc. In business Intel has developed a range of chips for personal organizers, servers and a range of other applications. In mobility it has provided the processing applications that drive new products for people who want to keep in touch whilst on the move. Within product divisions there is a strong emphasis on team building to share expertise. Chip engineers, software developers, marketers, and market specialists work to develop new and exciting products.
• Why Intel decided to adopt a new strategy?
• What are the key features of its new strategy?
• “A company grows by creating new market and products”.
Discuss and show its relevance with respect to Intel’s new strategy.
Case Analysis to previous issue case..