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Intel Individual Assignment

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Submitted By juancanepa
Words 581
Pages 3
Juan Cánepa
Instructor Dr. Jun Lin
BUS 450.01 Strategic Management
Intel Corporation: 1968-2003. Writing Assignment.
November 4, 2014

What has been the logic underlying Intel’s product diversification strategy? What are the greatest threats to Intel’s competitive advantage today? For each threat you identify, discuss (1) why it is a threat, (2) the relationship to Intel (e.g., rival, supplier, etc.), and (3) what you recommend Intel to do to respond to each threat.
Craig Barrett was name CEO in March of 1998, succeeding Grove. This former Professor at Stanford University made aggressive strategy moves as soon as he was named CEO. First, he spent up to $12 billion on acquisitions and internal ventures in new markets such as networks, wireless, communications, and online services from 1998 to 2000, in order to new business. Then, he also changed the corporate mission statement to “being the preeminent building-block supplier to the worldwide Internet economy” in 1999.
Intel invested a large amount of money in such a short time, but no mature enough, for the new competition and new business. However, there were certain events, such as a recession and decreasing on world PC microprocessor revenue or the fact that the competition in new business was even stronger than its core business, that led Intel to shut down businesses ranging from Web hosting, network switching and network appliances to Intel consumer products. So a back-to-basics program was introduced.
Under all this diversification strategy, there was a logic reason to do that: the industry in which Intel is developed. The computing industry (this includes, from microprocessors to Internet, and from PCs to mobile devices) is an industry that is always changing and developing. Apart from, Intel made a related diversification in order to capitalize the synergies that could achieve from cross-businesses’

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