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

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Page 5: Restructuring Intel around its market

Intel built its early success on providing ingredients for personal computers with its prime driver being technology. It was dominated by engineers and worked closely with Microsoft and PC manufacturers such as Dell, Compaq and IBM.

The new strategycontinues 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. In the words of the new Chief Executive Officer: 'To sell technology now you have to do it in a way which is much more simple. You can't talk about the bits and the bytes'. In other words it is about what people make possible with Intel products.

New product launchesToday Intel is working with a broad range of fellow travellers e.g. with Motorola for mobile devices and with hospitals for digital health.

The market for high-tech products and systems is broken up into discrete segments. Intel recognises this and has therefore created four divisions representing these segments.

New product launchesAlthough different target groups have common needs for information, the types of information they want at home or work will be different. For example, a recording of a romantic movie or thriller is watched at home whilst at work it will be a trainingvideo or video conferencing facility. Digital home is committed to providing the ultimate entertainment experience, whilst digital health will work directly with hospitals and health care professionals.

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 organisers, 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.

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