Intel Business Strategy Shift - Smart Move or Risky Move

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intel BUSINESS strategy shift  

 is it a smart move or too risky?

Course Title: Strategic Management of Technology

Course Number: ETM 526

Professor: Dr. Charles Weber

Date: 06/05/ 2016

Abstract

We live in a fast and changing modern world.  New technologies and products are constantly being thrust onto the emerging markets to appeal to consumer needs and wants. For this reason it is imperative for organizations to not only anticipate what customers need but also to develop the types of products that consumers would want. This requires organizational marketing, R&D and management teams to identify emerging consumer and business trends in order to align their strategies and organizational structure to capitalize on revenue-generating opportunities. Thus, it is important for organizations to be able to forecast and predict trends and developments in a timely manner. Because Intel is at the leading edge of technological innovation, its leadership team must position themselves to capitalize on consumer and business trends that are shaping both the semiconductor and the IT industries. However, over the last few years we’ve seen Intel core competencies, client computing group (CCG) and mobile communication group (MCG) portfolio line of products sales decline consecutively year-over-year (YoY).  In response to these changes and the diminishing returns in the client-computing and mobile segments, Intel’s leadership team announced a restructuring strategy on April, 2016 that will supposedly strengthen their weaker business segments. Why didn’t Intel anticipate and respond to these changes sooner versus later? Are these changes a result of the leadership team’s failure to seize opportunities during the mobile evolution era? How did the senior leadership team mischaracterize consumer needs and the emerging trends in the computing industry? How will these new strategies enable Intel to regain past losses and be more competitive? What will the future of Intel client computing segment and mobility segment look like going forward? The focus of this paper explores these questions in order to gauge where Intel competitive advantage lies.

Contents

Abstract        1

1.0 Introduction        3

2.0 What was the root cause of intel business strategy shift?        4

3.0 HOW DOES INTEL GENERATE REVENUE?        7

3.0 HOW DOES INTEL GENERATE REVENUE?        10

4.0 WHAT WAS THE ROOT CAUSE OF THIS REVENUE DOWNTURN?        10

5.0 MISSED OPPORTUNITIES OF EMERGING TRENDS AND THE EFFECTS OF COMPETITORS        13

6.0 HOW WILL THESE NEW STRATEGIES ENABLE INTEL TO REGAIN IT’S COMPETITIVE EDGE        16

6.0 tHE FUTURE OF INTEL CLIENT COMPUTING SEGMENT AND MOBILITY SEGEMTN        19