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Intel Beyond 2003: Looking For Its Third Act

1225 words - 5 pages

ChallengeBeyond 2003, Intel needs to focus on recovering and eventually maintaining its previous Compound Annual Growth Rate (CAGR) of 25 percent. As a new successor, Intel's CEO Craig Barrett must evaluate that Intel's growth can be accomplished by extending the company's current position into potentially lucrative new markets and simultaneously maintaining its core competencies in the PC market. In context of maintaining its silicon leadership, by next year Intel needs to achieve increasing revenues within its three strategic business area: Intel Architecture Group (IAG) up to $25 million, Intel Communication Group (ICG) up to $3 million and Wireless Computing and Communications Group (WCCG) up to $2.5 million. Furthermore, in order to successfully maintain such growth, Intel must explore the convergence of communication and computing at the building block level not only in its current position but also in the new market segment. While Intel's top management must be able to strategically address the risk of a huge investment on its R&D, they really need to keep focusing on "Silicon Leadership" amongst its new mission. To achieve Silicon leadership, Intel also needs to sell more silicon products by penetrating more on its global market (especially in Asia Pacific) in order to reach $35-40 million of its total revenue within the next 2-3 years.Alternatives1.Adopting Total Quality Management (TQM) concept. TQM enforces a better quality of all processes, both internal and external. It reduces variation on every process so that greater consistency of effort is obtained. As a result, the quality of products will be increased, as well as customer satisfaction.Positives: This strategy will allow Intel to continue the improvement of all operations and activities in Intel business. In addition, action of this strategy is based on facts, thus, it is easier to evaluate the process as well as to gain more reliable information.Negatives: It would be time consuming and quite complex to simultaneously achieve the convergence of communication and computing architectures.2.Acquire a business in communication. Intel might purchase a particular company which renews its product cycle or has core competency in communication, such as Telcos, Motorola, etc.Positives: fast achievement, exploration of new market segment, and additional market share in communication will be obtained by Intel.Negatives: Intel has to purchase as a whole, not all technologies are beneficial to Intel.3.Improve Intel own technological development on communication. Intel already started its development in communication, yet still consumed a small portion of market share. By advancing its development, Intel can strengthen its position in the market of communication.Positives: Intel could develop their major products according to their strategy, as well as product differentiation. Furthermore, it can enhance the expertise of Intel's staffs.Negatives: time consuming, high investment on...

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