Intel in 2004: Looking for Growth Strategies


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Case Details:

Case Code : BSTA049
Case Length : 22 Pages
Period : 1968 - 2004
Organization : Intel
Pub Date : 2004
Teaching Note :Not Available
Countries : Global
Industry : Semiconductors

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Before I retire from Intel, I want a piece of Intel technology touching every human on earth, every minute of every day, in every aspect of their lifestyle".

- Patrick Gelsinger, CTO, Intel1.

Introduction

In early 2004, Craig Barrett (Barrett), CEO of Intel, the world's largest microprocessor manufacturing company, was considering ways to develop and enter new markets. The company was the undisputed leader in the microprocessor industry with about 90% market share. Since 1968 when it was founded, Intel had launched many groundbreaking products. After conquering the desktop microprocessor market with its popular Pentium chips, Intel realized the need to foray into other areas such as consumer electronics, videogames, mobile phones, wireless home networking and even medical diagnostic gear. In the early 2000s, the company's slogan was moving away from "Intel Inside", to making "Intel Everywhere".

In Intel's new scheme of things, its powerful lineup of chips would form the backbone of nearly every type of digital device. By 2004, Intel was targeting 10 new product areas for its chips, primarily in the consumer-electronics and communications markets.

Background Note

In the spring of 1968, Gordon Moore (Moore) dropped by Robert Noyce's (Noyce) home and the two decided to launch a new company to pursue large-scale integrated (LSI) memory. Intel (abbreviation of Integrated Electronics) was officially launched in the month of July that year.

"We knew we wanted to give this new technology a shot,"2.

- Moore recalled later.

Little did they know that their new venture would redefine the world of electronics. Andrew Grove (Grove), a first generation immigrant from Hungary, soon joined Noyce and Moore. Moore handled long-range planning while Grove was responsible for manufacturing. Noyce and Moore had an aura about them owing to their earlier association with Fairchild Semiconductors. Career aspirants perceived Intel as a hot new company. Intel's revenues grew rapidly, driven by sales of semiconductor memory to large computers...

Excerpts >>

1] "From Intel Inside To Intel Everywhere: Will The Chipmaker's Strategy Work?" Leadership and Change, Knowledge @ Wharton, Wharton, University of Pennsylvania.

2] http://www.intel.com/intel/anniversary/

  

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