Intel Centrino in 2007: A New "Platform" Strategy for Growth SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Intel Centrino in 2007: A New "Platform" Strategy for Growth
Creating Centrino required Intel to make major changes to its strategy and organization. The development of Centrino was part of Intel's "right hand turn" toward increased performance measures, including improvements coming from increased power efficiencies and away from maximizing processor clock speed. This strategic shift, together with the introduction of new multi-core architectures, fundamentally changed the company's definition of success for the future. It was a dramatic move forced on the company, in part, by physics and changing industry and competitive forces; but also made possible, in part, by a radically innovative microprocessor architecture developed by its scrappy, geographically distant microprocessor design center in Israel.
Authors :: Robert A. Burgelman, Philip E. Meza, Evan Barrett
Swot Analysis of "Intel Centrino in 2007: A New "Platform" Strategy for Growth" written by Robert A. Burgelman, Philip E. Meza, Evan Barrett includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Centrino Microprocessor facing as an external strategic factors. Some of the topics covered in Intel Centrino in 2007: A New "Platform" Strategy for Growth case study are - Strategic Management Strategies, Strategy, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Intel Centrino in 2007: A New "Platform" Strategy for Growth casestudy better are - – digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, geopolitical disruptions, increasing commodity prices, technology disruption,
there is backlash against globalization, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Intel Centrino in 2007: A New "Platform" Strategy for Growth
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Intel Centrino in 2007: A New "Platform" Strategy for Growth case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Centrino Microprocessor, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Centrino Microprocessor operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Intel Centrino in 2007: A New "Platform" Strategy for Growth can be done for the following purposes –
1. Strategic planning using facts provided in Intel Centrino in 2007: A New "Platform" Strategy for Growth case study
2. Improving business portfolio management of Centrino Microprocessor
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Centrino Microprocessor
Strengths Intel Centrino in 2007: A New "Platform" Strategy for Growth | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Centrino Microprocessor in Intel Centrino in 2007: A New "Platform" Strategy for Growth Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Intel Centrino in 2007: A New "Platform" Strategy for Growth Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Successful track record of launching new products
– Centrino Microprocessor has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Centrino Microprocessor has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High switching costs
– The high switching costs that Centrino Microprocessor has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Superior customer experience
– The customer experience strategy of Centrino Microprocessor in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Centrino Microprocessor has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Intel Centrino in 2007: A New "Platform" Strategy for Growth HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Centrino Microprocessor has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Centrino Microprocessor to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Centrino Microprocessor in the sector have low bargaining power. Intel Centrino in 2007: A New "Platform" Strategy for Growth has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Centrino Microprocessor to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Centrino Microprocessor is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Robert A. Burgelman, Philip E. Meza, Evan Barrett can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Learning organization
- Centrino Microprocessor is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Centrino Microprocessor is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Intel Centrino in 2007: A New "Platform" Strategy for Growth Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Centrino Microprocessor has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Intel Centrino in 2007: A New "Platform" Strategy for Growth - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Centrino Microprocessor has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Intel Centrino in 2007: A New "Platform" Strategy for Growth Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Sustainable margins compare to other players in Strategy & Execution industry
– Intel Centrino in 2007: A New "Platform" Strategy for Growth firm has clearly differentiated products in the market place. This has enabled Centrino Microprocessor to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Centrino Microprocessor to invest into research and development (R&D) and innovation.
Weaknesses Intel Centrino in 2007: A New "Platform" Strategy for Growth | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Intel Centrino in 2007: A New "Platform" Strategy for Growth are -
Aligning sales with marketing
– It come across in the case study Intel Centrino in 2007: A New "Platform" Strategy for Growth that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Intel Centrino in 2007: A New "Platform" Strategy for Growth can leverage the sales team experience to cultivate customer relationships as Centrino Microprocessor is planning to shift buying processes online.
Lack of clear differentiation of Centrino Microprocessor products
– To increase the profitability and margins on the products, Centrino Microprocessor needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Centrino Microprocessor has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Intel Centrino in 2007: A New "Platform" Strategy for Growth should strive to include more intangible value offerings along with its core products and services.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Centrino Microprocessor supply chain. Even after few cautionary changes mentioned in the HBR case study - Intel Centrino in 2007: A New "Platform" Strategy for Growth, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Centrino Microprocessor vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Intel Centrino in 2007: A New "Platform" Strategy for Growth HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Centrino Microprocessor has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Centrino Microprocessor has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Centrino Microprocessor has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High operating costs
– Compare to the competitors, firm in the HBR case study Intel Centrino in 2007: A New "Platform" Strategy for Growth has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Centrino Microprocessor 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Intel Centrino in 2007: A New "Platform" Strategy for Growth, it seems that the employees of Centrino Microprocessor don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
No frontier risks strategy
– After analyzing the HBR case study Intel Centrino in 2007: A New "Platform" Strategy for Growth, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow decision making process
– As mentioned earlier in the report, Centrino Microprocessor has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Centrino Microprocessor even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities Intel Centrino in 2007: A New "Platform" Strategy for Growth | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Intel Centrino in 2007: A New "Platform" Strategy for Growth are -
Loyalty marketing
– Centrino Microprocessor has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Centrino Microprocessor can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Centrino Microprocessor can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Centrino Microprocessor to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Centrino Microprocessor to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Centrino Microprocessor can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Centrino Microprocessor can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Building a culture of innovation
– managers at Centrino Microprocessor can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Centrino Microprocessor can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Centrino Microprocessor to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Centrino Microprocessor in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Centrino Microprocessor can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Centrino Microprocessor can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Intel Centrino in 2007: A New "Platform" Strategy for Growth suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Using analytics as competitive advantage
– Centrino Microprocessor has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Intel Centrino in 2007: A New "Platform" Strategy for Growth - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Centrino Microprocessor to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Centrino Microprocessor can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Intel Centrino in 2007: A New "Platform" Strategy for Growth, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Intel Centrino in 2007: A New "Platform" Strategy for Growth External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Intel Centrino in 2007: A New "Platform" Strategy for Growth are -
Technology acceleration in Forth Industrial Revolution
– Centrino Microprocessor has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Centrino Microprocessor needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of Centrino Microprocessor
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Centrino Microprocessor.
Stagnating economy with rate increase
– Centrino Microprocessor can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Centrino Microprocessor.
Consumer confidence and its impact on Centrino Microprocessor demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Regulatory challenges
– Centrino Microprocessor needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Centrino Microprocessor needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Centrino Microprocessor in the Strategy & Execution sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Centrino Microprocessor can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Centrino Microprocessor in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Centrino Microprocessor high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Centrino Microprocessor will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Intel Centrino in 2007: A New "Platform" Strategy for Growth Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Intel Centrino in 2007: A New "Platform" Strategy for Growth needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Intel Centrino in 2007: A New "Platform" Strategy for Growth is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Intel Centrino in 2007: A New "Platform" Strategy for Growth is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Intel Centrino in 2007: A New "Platform" Strategy for Growth is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Centrino Microprocessor needs to make to build a sustainable competitive advantage.
