Identifying and creating new markets - a new strategy for a global leader
An Intel case study

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Page 2: Developing a new strategy

Intel imageOrganisations live or die as a result of the strategies they choose. A business strategy is a plan for the whole organisation. The strategy must fit with the business environment - the changing world in which the business exists.

Intel has been at the centre of a growing industry for over thirty years. However, the growth in the sales of personal computers is slowing down in a very competitive environment. In addition, mobile phones and hand held devices have become increasingly important alternatives.

Since 2003 Intel's sales revenue has grown by an average of 13% a year. However, as the market segment matures, laptop sales are growing whilst desktop sales are slowing down. As a result Intel generated record revenues of $38.8 billion in 2005.

Intel is an 'ingredient brand'. Its products and processors form part of the products that consumers purchase. Building key relationships with leading electronic firms such as Sony and Philips is an important strategy. The aim is to provide the manufacturers of products such as laptops, mobile phones and entertainment personal computers with integrated packages of chips and software - in other words a complete solution.

A key part of Intel's more integrated platform strategy involves the development of several technologies. These improve processor efficiency and allow computer users to take better advantage of:

  • multi-tasking
  • security
  • reliability
  • manageability
  • wireless computing capabilities.

Understanding how people actually use technology and then driving the power of Moore's Law to deliver increased capabilities, means that end users obtain more benefits and increased usefulness from the technology.

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.  Its new strategy is about:

  • working with customers to share a vision of future technologies
  • developing new customer focused technologies
  • giving people new products that are easy to understand and use
  • communicating clear messages about these new products.

Intel | Identifying and creating new markets - a new strategy for a global leader