Restructuring / Turnaround Strategies Case Study

Intel Chipped to Restructure

Abstract:
In the beginning of 2006, Intel, the world’s largest chipmaker, had started facing problems due to its declining market share. During this period, the sale of its microprocessors, chipsets, motherboard and flash memory had declined in all the major geographic segments. Moreover, the company faced stiff competition from AMD. Hence, Intel planned to restructure, resize and repurpose itself. The case gives an insight into Intel’s history and the competition that it faced from its major competitor AMD. It discusses the challenges faced by Intel and the strategic initiatives taken by it to mitigate those problems.

Pedagogical Objectives:

• To discuss the challenges faced by Intel
• To discuss the restructuring process
• To understand the chip industry
• To analyse the strategic initiatives taken by Intel.

Keywords : Intel; Microprocessor; Semi conductor; Chip; Restructure; AMD (Advanced Micro Devices); Pentium; Restructuring / Turnaround Strategies Case Study; Celeron; Paul Otellini; IBM; Dell; Strategy; New product development; Segmentation; Robert Noyce