Intel's Mobile Strategy in 2015 and Beyond SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Intel's Mobile Strategy in 2015 and Beyond
"Intel's Mobile Strategy in 2015 and Beyond" examines the company's 2014 - 2015 strategy to become a more important mobile player. In early 2015, the semiconductor giant had virtually no presence in the smartphone market, and had only recently gained a real presence in the tablet market. Getting into the mobile market was strategically vital for Intel as the notebook market had been shrinking due to cannibalization from tablets. Flattening demand for notebook processors also meant that production volume in Intel's multi-billion fabrication plants was flattening as well. Intel's mobile efforts had led to losses of $5 billion by the first quarter of 2015. Most phones and tablets ran on a competing architecture designed and licensed by ARM Holdings, and Intel competitors Qualcomm, Apple, Samsung and MediaTek made most of the processors for mobile devices. Intel's efforts to gain market share included compensating its manufacturing customers for the cost of using Intel's more expensive chips. Its goal was to supply chips for 40 million tablets by the end of 2014 (which it exceeded). Intel was also engaging in new partnerships and investment tactics in China to sell Intel-branded chips for the low end of the tablet market. In pursuing the mobile market, Intel had encountered technology challenges and delays, as well as an internal resistance to selling the lower-priced, lower-margin mobile processors, despite having data showing customers' increasing desire for mobile products. Intel had very little time to establish a relevant presence in the mobile market, and the question was whether implementing these new strategies would be enough.
Swot Analysis of "Intel's Mobile Strategy in 2015 and Beyond" written by Robert A. Burgelman, Debra Schifrin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mobile Intel's facing as an external strategic factors. Some of the topics covered in Intel's Mobile Strategy in 2015 and Beyond case study are - Strategic Management Strategies, Competitive strategy, Innovation, IT, Marketing, Mobile and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Intel's Mobile Strategy in 2015 and Beyond casestudy better are - – increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, there is backlash against globalization,
central banks are concerned over increasing inflation, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Intel's Mobile Strategy in 2015 and Beyond
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Intel's Mobile Strategy in 2015 and Beyond case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mobile Intel's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mobile Intel's 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's Mobile Strategy in 2015 and Beyond can be done for the following purposes –
1. Strategic planning using facts provided in Intel's Mobile Strategy in 2015 and Beyond case study
2. Improving business portfolio management of Mobile Intel's
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 Mobile Intel's
Strengths Intel's Mobile Strategy in 2015 and Beyond | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mobile Intel's in Intel's Mobile Strategy in 2015 and Beyond Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– Intel's Mobile Strategy in 2015 and Beyond firm has clearly differentiated products in the market place. This has enabled Mobile Intel's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Mobile Intel's to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Mobile Intel's are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Organizational Resilience of Mobile Intel's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mobile Intel's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Mobile Intel's is one of the leading recruiters in the industry. Managers in the Intel's Mobile Strategy in 2015 and Beyond are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Mobile Intel's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Mobile Intel's 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's Mobile Strategy in 2015 and Beyond - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Mobile Intel's 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.
Highly skilled collaborators
– Mobile Intel's 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's Mobile Strategy in 2015 and Beyond HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Mobile Intel's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mobile Intel's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mobile Intel's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mobile Intel's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Innovation driven organization
– Mobile Intel's is one of the most innovative firm in sector. Manager in Intel's Mobile Strategy in 2015 and Beyond Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Mobile Intel's 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, Debra Schifrin 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.
Weaknesses Intel's Mobile Strategy in 2015 and Beyond | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Intel's Mobile Strategy in 2015 and Beyond are -
High cash cycle compare to competitors
Mobile Intel's has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mobile Intel's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Intel's Mobile Strategy in 2015 and Beyond can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Intel's Mobile Strategy in 2015 and Beyond 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's Mobile Strategy in 2015 and Beyond can leverage the sales team experience to cultivate customer relationships as Mobile Intel's is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Intel's Mobile Strategy in 2015 and Beyond, in the dynamic environment Mobile Intel's has struggled to respond to the nimble upstart competition. Mobile Intel's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Mobile Intel's, firm in the HBR case study Intel's Mobile Strategy in 2015 and Beyond needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Intel's Mobile Strategy in 2015 and Beyond HBR case study mentions - Mobile Intel's takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Intel's Mobile Strategy in 2015 and Beyond, is just above the industry average. Mobile Intel's needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Skills based hiring
– The stress on hiring functional specialists at Mobile Intel's 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.
Interest costs
– Compare to the competition, Mobile Intel's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Intel's Mobile Strategy in 2015 and Beyond, it seems that the employees of Mobile Intel's 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.
Products dominated business model
– Even though Mobile Intel's 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's Mobile Strategy in 2015 and Beyond should strive to include more intangible value offerings along with its core products and services.
Opportunities Intel's Mobile Strategy in 2015 and Beyond | 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's Mobile Strategy in 2015 and Beyond are -
Using analytics as competitive advantage
– Mobile Intel's 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's Mobile Strategy in 2015 and Beyond - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mobile Intel's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mobile Intel's can use these opportunities to build new business models that can help the communities that Mobile Intel's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Mobile Intel's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Intel's Mobile Strategy in 2015 and Beyond 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mobile Intel's 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 Mobile Intel's to hire the very best people irrespective of their geographical location.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mobile Intel's in the consumer business. Now Mobile Intel's can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Mobile Intel's 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.
Creating value in data economy
– The success of analytics program of Mobile Intel's has opened avenues for new revenue streams for the organization in the industry. This can help Mobile Intel's to build a more holistic ecosystem as suggested in the Intel's Mobile Strategy in 2015 and Beyond case study. Mobile Intel's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Mobile Intel's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mobile Intel's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mobile Intel's can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Developing new processes and practices
– Mobile Intel's 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.
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. Mobile Intel's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Mobile Intel's can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats Intel's Mobile Strategy in 2015 and Beyond External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Intel's Mobile Strategy in 2015 and Beyond are -
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 Mobile Intel's.
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. Mobile Intel's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Mobile Intel's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Mobile Intel's 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.
Increasing wage structure of Mobile Intel's
– 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 Mobile Intel's.
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. Mobile Intel's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Mobile Intel's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Intel's Mobile Strategy in 2015 and Beyond, Mobile Intel's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Environmental challenges
– Mobile Intel's needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Mobile Intel's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mobile Intel's 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mobile Intel's can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Intel's Mobile Strategy in 2015 and Beyond .
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. Mobile Intel's 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.
Technology acceleration in Forth Industrial Revolution
– Mobile Intel's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mobile Intel's 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.
Weighted SWOT Analysis of Intel's Mobile Strategy in 2015 and Beyond 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's Mobile Strategy in 2015 and Beyond 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's Mobile Strategy in 2015 and Beyond 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's Mobile Strategy in 2015 and Beyond 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's Mobile Strategy in 2015 and Beyond 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 Mobile Intel's needs to make to build a sustainable competitive advantage.