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Case Study Intel This Is A Strategic Management Case

3078 words - 12 pages

KEY DRIVERSWhat drove Intel? Craig Barrett, appointed executive vice president in January 1990, believes that "the world changes and the centre of gravity shifts. We need to shift with it." . Intel recognises the need for continually analysing and reviewing its strategies in order to meet the changes and challenges that come from the external environments so as to meet the stakeholders' expectations. Intel strives for business renewal and revitalisation as a way of dealing effectively with the impact of the information society on today's dynamic industry. Therefore, Intel is an innovation-driven organization that strongly believes that competitive advantage can be achieved by choosing the right option at the right time so as to create value to Intel's key stakeholders: its customers. To achieve this Intel uses the following key drivers (which are discussed in detail in Question 2):*Market leadership and Innovation*Research and Development*Strategic Alliances*Good Human Resource Management*Benchmarking*BrandingKEY INNOVATIONSInnovation has always been a key feature in Intel's history. In this section we summarise the major innovations brought out by Intel:1969SRAM (bipolar static random access memory);1971EPROM 1702 (erasable programmable memory device);Intel launches its first microprocessor (the 4-bit 4004);1974Intel launches its first general-purpose microprocessor (the 8-bit 8080);1981The revolutionary 432 32-bit microprocessor is launched;1985The 32-bit 386 microprocessor is introduced (the 486 will replace the 386 in 1989);1993The first generation of Pentium processors is introduced;As one can see, Intel has continually introduced breakthrough market creating products, highlighting the importance of innovation as a key driver to this company.KEY STRATEGIC INITIATIVES1984Copyright protection (i.e. lawsuit against NEC) and dramatic changes in the company's licensing strategy (only IBM was granted a license);1985Intel exits the DRAM business (and by the end of 1986 also the SRAM business);Mid 80'sIntel decided to minimise layoffs and instead accelerate product introductions.With the "386" Intel mainly focused on microprocessors and other business initiatives generating high margins (e.g. supercomputers);Late 80'sThe SEMATECH alliance did not match expectations and faded away; in 1988 Intel teamed up with Siemens but, once again did not succeed, like many others both before and after.Structure:As times change, organisational structure to evolve/change (1987-1988);COMPETITIVE STRENTGHSDue to its successful early days into the semiconductor industry, Intel established itself as one of the leading brands in the hi-tech sector. Intel managed to create and develop such an established and well recognised brand by being able to launch new products as well as being able to reinvent itself (e.g. moving from semiconductor memories to microprocessors).In other words, management created a dynamic internal environment where people were encouraged to accept...

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