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Intel Corporation - Case Study Example

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The Intel Corporation is one of the biggest microchip manufacturers in the world. Facing a new challenge from its rival Advance Micro Devices (AMD), Intel's new management under the leadership of Intel's new Chief Executive Officer, Paul Otellini, and Chief Marketing Officer Eric Kim tries to create a new face of the corporation which targets a wider range of consumers…
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Intel Corporation
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Download file to see previous pages Cliff Edwards (2006) mentions the changing culture in the Intel Corporation. During the term of Andrew Grove, his motto was "Only the paranoid survive". He and former chief Craig Barret introduced the manner of giving out money to some computer makers for joint advertising. During the term of new CEO, Paul Otellini, his diplomatic nature made him adopt his motto of "Praise in public, criticize in private". (Edwards, 2006)
Edwards (2006) mentions the changes that are pushed by Intel Chief Marketing Officer Eric Kim on the Intel brand. Kim suggested to stop the manufacture of old models that were created during the tenure of former Intel Chief Executive Andrew Grove and focus on the new ones. Kim wanted to retain the Pentium brand. Figure 1 shows the evolution of the Intel brand logo from which according to Edwards (2006) had a "dropped e" until the new Intel brand logo which according to Jeff Adkins (2006) is to be launched in 2010.
Intel's CEO Paul Otellini supported the move of reforms on the company. He wants to produce products not only for personal computers but also on consumer electronics, wireless communications, and health care. Edwards (2006) identifies the reason for this change which was the decreased revenue growth for computers because of added competitors like mobile phones that also have features similar to computers. Aside from Intel's main products, the microprocessors, Otellini wants to produce all varieties of chips and software and combine them into "platforms". (Edwards, 2006)
III. STRATEGIC CONTROLS AND IMPLEMENTATIONS
In response to the reported drawbacks during the 2nd quarter of 2006 wherein Intel Corporation placed behind its rival chipmaker Advance Micro Devices Incorporated (AMD), Edwards (2006) reports that Intel Corp. began decreasing its prices of computer chips by at least 200 U.S. dollars. It also introduced its new processor the Intel Core 2 Duo which runs twice the performance of Pentium 4 desktop chips and saves more energy for laptop computers. For the older Pentium processors, Intel will continue manufacturing them for the people who have low budget allotted for purchasing computers. Edwards (2006) argues that if there will be a price war between Intel and AMD, Intel will come out benefiting from its larger sales through lower costs. Intel has better manufacturing techniques which give the company the room to lower its prices that will not affect the overall profits. Edwards (2006) adds that AMD can match the technology Intel has by the second half of 2007. (Edwards, 2006)
Aili McConnon (2007) reports a manifestation of the vision of Otellini of developing products aside from computer microchips. The company has been developing a highly developed version of motion capture in which people will not need remotes to change the channels and volume of their televisions. (McConnon, 2007) This strategy is one way of promoting the brand in the entertainment arena.
Bruce Einhorn (2006) cites another move for the company in making its products accessible by many people and the Kim's vision of improving the lives of people. In the case of China were Internet Caf computers reached 11 million units in 2006, the Intel management created a system in assisting in the management and update ...Download file to see next pagesRead More
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