ARM Intel and the Microprocessor Industry in 2014 - Case Study Example

Arm Intel And Micro-Processors Background There was a high demand of semiconductors due to various reasons. Smarts phones and computers had high demand globally because they had strong chips. Home appliances such as fridges and TV sets had advanced technologically due to connection to the internet. The demand for these appliances was because of semiconductors and these made them to flourish. As the internet continued to become widespread, the demand for processors increased because the gadgets were connected to website servers. However, this did not suggest that all was going well within the industry. They had a feeling that sales favored ARM as their sales did not reflect the center of the ecosystem. Some observers felt that this would result to Intel making decisive actions. Intel was famous because it had good cash flow and upgraded technology. 40% of semiconductors are classified as microprocessors that have the circuit needed for computers. The remaining 60% are used for simple processors that have specific use such as the greeting cards. Even if they are less flexible they cannot be programmed once they have been installed (Grant & Jordan, 2012, P 15). Their shares of microprocessors have been increasing and it passed 50% in the year 2010. Microprocessors are manufactured through a complex process. The leading player is the US giant Intel that produced processors through its own architecture of x86. Their processors were used in the growing segments such as manufacturing of smart phones and tablets. This increased their sales from 12% in 2010 to 22% in 2012. They also became dominants by manufacturing gadgets at low cost and chrome book that was introduced by Google. The key selling strategy of ARM was through designing gadgets that consumed little energy. This was an important aspect of gadgets that needed to utilize energy that have limited battery capacity. This strategy seemed to be a good factor for some years to come. However the emission of low battery car was being improved. Commenters had begun to take an interest in the rivalry between Intel and ARM. These were different companies with different business models. And because of this neither of the two companies was justified to continue with the spoils with the way they have been doing. The final challenge is expected in network servers where ARM chips were being displayed. There are many processors in servers that are tightly fixed together, thus become a major challenge to keep them cool for long. Low energy chips consume low energy while operating thus cutting down costs. In the past many companies bought their servers from a few large companies (Grant & Jordan, 2012, P 45). To ensure that business succeeds in the market a company had to buy servers from companies with a reputation. However introduction to cloud computing has changed the nature of many businesses. With the introduction of cloud computing, companies no longer buy serves but instead they rent space for big companies such as Google and Microsoft. These companies that provided cloud services did not require had vendors. They bought their processors directly from Intel and used their hardware’s and software’s to their advantage. Nature of the Business The primary business of Intel is manufacturing microprocessors. The company seeks to tap into the $ 40 billion economy presented by micro processing business, and to maintain its status as the company of choice for clients all over the world. However, the challenge lies in the fact that manufacturing of microprocessors has become internationally spirited, hence the need to adopt more creative and innovative marketing strategies. One of such inventive business tactics is tapping into the online market to take advantage of the market presented by online clients of products and services (Grant & Jordan, 2012, P 55). The company exploits this market by creating an online platform for its customers to order microprocessors, well in advance, through its website while still maintaining a reasonable price that is fair to its customers. This has largely contributed to the company’s successful market penetration strategies and accolades for its reservation process, customer support, and business design. IT Strategy Recognizing the fact that Information Technology plays an important role in elevating business, the Intel should seek to strengthen its Information Technology structure (Rumelt, 2011, P 24). This is because despite successfully tapping into the online market, the company has not adequately exploited the market. The company should seek to exploit the other opportunities presented by information technology to not only make its online market fully accessible by the customer, but also increase its customer support systems. This can be achieved through embracing additional technology to tap into the market presented by a rapidly growing technology savvy population that prefers efficiency and convenience in business dealings. The mobile telephony network presents another platform for the company to develop its information technology support structures further. This platform creates a valuable network for the company, which can be effectively exploited by the company to enhance its market accessibility by the customer. Establishing an effective value network through the adoption of mobile telephony is important for the company because besides generation of economic value to the company, it may also be used to create dynamic exchanges between the company and its customers, including other affiliate companies (Rumelt, 2011, P 33). Mobile telephony network, through the establishment of a value and client networking system, presents an ideal channel for the company to increase its client base by tapping into a market that has not been fully exploited even by the company’s competitors. This is because this platform provides a new market for tapping into clients who find it difficult to use computers. The company needs to align its IT strategies to this model because of the following reasons. 1. There is a need for the company to keep up with the changing global market trends in providing easy access to the company’s products and services. 2. The presence of an untapped market that creates an opportunity for the company to increase its customer base, hence an opportunity to increase its revenue. This market is presented by the group of people who are unable to use computers or are unable to access the internet. 3. There is a need for the company to increase and expand its customer support systems to include the aforementioned class of people. 4. The mobile telephony network creates an added advantage of incorporating an eBusiness platform into the company’s business model. Organizational Architecture and Scope Business and organizational architecture play an important role towards the attainment of any company’s goals and values. This is because the goals of organizational architecture are to create companies and organizations that add value to existing and future customers while at the same time improving the performance of the company itself. The company has a solid management structure that is designed to meet the company’s goals and objectives. The hiring of a competent board and management directors ensures that the company is in good management hands, and is thus able to compete with other leading companies in the business. It also ensures high standards are maintained in running the company and the hiring of a motivated and competent staff (Haberberg and Rieple 2008, P 14). The company employs an inspiring culture of employing and retaining its employees. This involves offering of competitive wages to its employees and establishment of a structured and effective employee welfare system. The company also employs a customer satisfaction system that recognizes the importance of the customer to the business of addressing all the issues raised by the customers. This is achieved through the creation of a raid response system that addresses the needs and concerns raised by the customers. The employees also undergo training in customer service, especially on customer follow up to maintain customer satisfaction, which has been the hallmark of the company’s success. Finally, the company adopts a fun factor at work that encompasses both passion and winning attitudes. This is achieved by ensuring that the company’s employees are motivated and energized while performing their duties as the company believes that no one should work in an environment that he/she does not enjoy. The workers are thus encouraged to enjoy tackling new issues arising at work through consultation and team efforts. ADM Intel Company will use the second part of TOGAF, which is an architecture development method (ADM). This is the main parts that will enable the company in building appropriate business enterprise architecture. This part helps in comprehending important strategies of the organization. Intel Company will implement ADM by using reports about the advantages and limitations of the existing implementation in connection to changes required. The development of a good architecture ensures the growth of the business in response to future changes. Even though, development of architectural enterprise is difficult, TOGAF assists in the development of an open system of mobile phone IT that will help business reach many clients as possible, thus increasing their profits. Intel Company is able to address the concerns of stakeholders through the development of a mobile phone IT system. IT helps the business to address its concerns in an understandable and satisfactory way. Drawbacks/ Assumptions Although the mobile telephony network system has numerous benefits to both the customers and Intel Company itself, it has drawbacks, which limit its operations. Instances of customers making false requests may be present and this will be costly to the organization since it uses its resources to respond to the request. The service lacks personal appeal and it is difficult to convince a customer about a choice of a microprocessor. This will be disadvantageous to the company since if it was a face-to-face consultation it would be possible to convince a customer to pick a different microprocessor model if the one they requested for is not available. Summary Growth in technology and global business has prompted Intel Company to enhance its marketing strategies so that it can serve its wide market efficiently. The information technology based economy has prompted the company to strategies, measures, which will ensure that it gains a competitive advantage in the market by reaching as many customers as possible. The company has been forced to transform its operations so that it can compete in the global market effectively. Competing in the global market requires proper management of information, increased competition and superior services so that the company can become the leader in the market. Most companies today are concentrating on information technology to gain a competitive advantage since proper management of information and customers is the key to success of any business. The global market requires any company to take up the current trends in the market so that they do not run out of business. For this reason, Intel Company aims at introducing a mobile telephony network, which will make ordering of microprocessors as easy as possible. This network will only require customers of the company to have a mobile phone where they will send a text message to the company’s system, which will then send a confirmation text informing them whether the microprocessor they require is available or not. This framework will enable for the fast and reliable sealing of microprocessors since the customers can order the microprocessor from any location provided they have a mobile phone. This strategy is very efficient and will be better that the online booking since it will not require internet access, which some customers may not be able to access. The company’s offices in the different countries will have specific numbers, which the customers will use to request for microprocessors of their choice. The cost of the text message sent by the customer will depend on the rates charged by the service providers and this will see that customers are satisfied with the services of the company. Customers are the key to success of any business, and making the ordering of microprocessors as easy as sending a text message to the providers, will see that their needs are met and the company will be able to record tremendous growth. The company will also benefit from proper management of information since the databases will store all the information concerning the ordering of microprocessors. PORTERS THEORY Power of suppliers Intel company needs to utilize power of suppliers because they will be able to sell many microprocessors. This is a nice strategy since the suppliers will be able to supply good materials to the manufactures. The microprocessors that will be produced will be of good quality when the suppliers will be given good raw materials.. Power of consumers Consumers are very important people in any business because they are the core parties. Therefore the prices of the microprocessors will be sold at a fair price. This will ensure that all the parties will be satisfied as both the manufactures and the consumers will be able to enjoy the products. Threats of subsidiariers Intel company should take procoution of other companies that manufacture microprocessors. This is because the business can run at a loss because other companies that produce other gadgets which will replace the microprocessors. Therefore the company should ensure that they satisfy their clients to avoid threat from other companies. Competitors There are other up coming companies that trying to advance their gadgets. Therefore Intel company should ensure that their microprocessors are of good quality and they sell them at a fair price. This is a nice strategy that will ensure that the business flourish without any hiccups. Threats of new entry There are other companies that are trying to advance their gadgets. Therefore Intel company should ensure that they open other branchers in foreign countries. It is therefore very important for Intel company to come up with other branches that produce quality microprocessors. PESTEL ANALYSIS Political Intel company should be very cautious because there are other political members who might try to subborget marketing of microprocessors. This is because they might try to hinder the application of licence. Economic Every economy that a company does business is a factor.there are other factors that Intel company should consider such as interst rates, inflation, changes in currency rates and changes in taxation rates. Social The society is the core unit of a community, hence without cordination of people in the society then microprocessors will not be marketed. Intel company should ensure that they have good cordination with members of the community. This will ensure that the microproce Technological This apects deals with how technology changes and how the client use technology to purchase the microprocessors. Technology changes in daily basis hence the company should ensure that it adapts to the upcoming technology. Clients will be able order the microprocessors through the internet in any place they are. This is also a nice strategy to ensure that the microprocessors will be sold at a high rate hence increasing profits of the company. Environmental It is very significant for intel company to consider environmental factorts. This is because there are policies set aside to ensure that companies are environmental friendly. In addition intel company must put in consideration that there is change is in climate and weather. Legal Intel company should ensure that it puts into consideration laws laws like health and safety laws, environmental laws, privacy laws and international laws. This is a very impotant aspect since the company can utilize it fot its advantage. SWOT analysis This is a useful tool for planning and marketing. Therefore Intel company needs to identify its strength and weaknesses since they must suggest their opportunities and threats in future. This is because there are some people who play opposite games where they identifiy an opportuity and later they convert it to a threat. However, this is not a threat since threats occure in the future.s References Grant, R., and Jordan, J. (2012). Foundations of Strategy. Chichester: Wiley. Haberberg, A., and Rieple, A. (2008). Strategic management: theory and application. Oxford: Oxford University Press Rumelt, R. (2011). Good strategy/bad strategy: the difference and why it matters. London: Profile Books. Read More