Intel 2006: Rising to the Graphics Challenge SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Intel 2006: Rising to the Graphics Challenge
Examines the evolution of the PC hardware industry over the span of two and a half decades. The open architecture design of the IBM Personal Computer followed by the rapid appearance of clones drove a high level of standardization and modularity in the industry, and value was distributed along the value chain depending on levels of competition and ability to substitute components at each level. On the hardware side two component segments, the microprocessor and the graphics processor unit (GPU), ultimately became the most valuable parts of the chain. The GPU business had settled into a duopoly with Nvidia, Inc. and ATI Technologies (ATI). Intel had dominated the microprocessor segment, but Advanced Micro Devices (AMD) was consistently a thorn in Intel's side. Addresses the prospects of the graphics function becoming integrated with the microprocessor on a single piece of silicon. AMD had just announced the acquisition of ATI and Paul Otellini, Intel's CEO, is faced with the question of what he should do. Should he buy Nvidia, should he continue with his own internal graphics efforts, or should he listen to some of his customers and leave things separate?
Swot Analysis of "Intel 2006: Rising to the Graphics Challenge" written by Willy Shih, Elie Ofek includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ati Graphics facing as an external strategic factors. Some of the topics covered in Intel 2006: Rising to the Graphics Challenge case study are - Strategic Management Strategies, Competition, Disruptive innovation, Supply chain, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Intel 2006: Rising to the Graphics Challenge casestudy better are - – there is backlash against globalization, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, increasing commodity prices, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation,
there is increasing trade war between United States & China, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Intel 2006: Rising to the Graphics Challenge
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Intel 2006: Rising to the Graphics Challenge case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ati Graphics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ati Graphics 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 2006: Rising to the Graphics Challenge can be done for the following purposes –
1. Strategic planning using facts provided in Intel 2006: Rising to the Graphics Challenge case study
2. Improving business portfolio management of Ati Graphics
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 Ati Graphics
Strengths Intel 2006: Rising to the Graphics Challenge | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ati Graphics in Intel 2006: Rising to the Graphics Challenge Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Intel 2006: Rising to the Graphics Challenge 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.
High brand equity
– Ati Graphics has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ati Graphics to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Intel 2006: Rising to the Graphics Challenge firm has clearly differentiated products in the market place. This has enabled Ati Graphics to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Ati Graphics to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Ati Graphics in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Ati Graphics 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 Willy Shih, Elie Ofek 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Ati Graphics digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ati Graphics 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.
Low bargaining power of suppliers
– Suppliers of Ati Graphics in the sector have low bargaining power. Intel 2006: Rising to the Graphics Challenge has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ati Graphics to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Ati Graphics has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ati Graphics 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.
Training and development
– Ati Graphics has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Intel 2006: Rising to the Graphics Challenge 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.
Organizational Resilience of Ati Graphics
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ati Graphics does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Ati Graphics is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Ati Graphics is one of the leading recruiters in the industry. Managers in the Intel 2006: Rising to the Graphics Challenge are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Intel 2006: Rising to the Graphics Challenge | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Intel 2006: Rising to the Graphics Challenge are -
Aligning sales with marketing
– It come across in the case study Intel 2006: Rising to the Graphics Challenge 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 2006: Rising to the Graphics Challenge can leverage the sales team experience to cultivate customer relationships as Ati Graphics is planning to shift buying processes online.
Interest costs
– Compare to the competition, Ati Graphics 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.
Increasing silos among functional specialists
– The organizational structure of Ati Graphics is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Ati Graphics needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ati Graphics to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Intel 2006: Rising to the Graphics Challenge, it seems that the employees of Ati Graphics 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Ati Graphics needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Low market penetration in new markets
– Outside its home market of Ati Graphics, firm in the HBR case study Intel 2006: Rising to the Graphics Challenge needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Ati Graphics 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 2006: Rising to the Graphics Challenge should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Intel 2006: Rising to the Graphics Challenge 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 Ati Graphics has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Intel 2006: Rising to the Graphics Challenge 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 Ati Graphics 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Intel 2006: Rising to the Graphics Challenge, in the dynamic environment Ati Graphics has struggled to respond to the nimble upstart competition. Ati Graphics has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ati Graphics is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Intel 2006: Rising to the Graphics Challenge can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Intel 2006: Rising to the Graphics Challenge | 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 2006: Rising to the Graphics Challenge are -
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. Ati Graphics can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ati Graphics is facing challenges because of the dominance of functional experts in the organization. Intel 2006: Rising to the Graphics Challenge case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, 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. Ati Graphics can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Ati Graphics can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Learning at scale
– Online learning technologies has now opened space for Ati Graphics 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ati Graphics 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 Ati Graphics to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Ati Graphics can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Intel 2006: Rising to the Graphics Challenge 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.
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 Ati Graphics in the consumer business. Now Ati Graphics can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Ati Graphics has opened avenues for new revenue streams for the organization in the industry. This can help Ati Graphics to build a more holistic ecosystem as suggested in the Intel 2006: Rising to the Graphics Challenge case study. Ati Graphics can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Ati Graphics 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ati Graphics 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ati Graphics can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Ati Graphics to increase its market reach. Ati Graphics will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Threats Intel 2006: Rising to the Graphics Challenge External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Intel 2006: Rising to the Graphics Challenge are -
Stagnating economy with rate increase
– Ati Graphics 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.
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. Ati Graphics can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ati Graphics 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 2006: Rising to the Graphics Challenge .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ati Graphics with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Ati Graphics.
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 Ati Graphics in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Ati Graphics 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.
Shortening product life cycle
– it is one of the major threat that Ati Graphics is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Technology acceleration in Forth Industrial Revolution
– Ati Graphics has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Ati Graphics 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.
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 2006: Rising to the Graphics Challenge, Ati Graphics 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 .
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. Ati Graphics 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 2006: Rising to the Graphics Challenge 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 2006: Rising to the Graphics Challenge 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 2006: Rising to the Graphics Challenge 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 2006: Rising to the Graphics Challenge 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 2006: Rising to the Graphics Challenge 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 Ati Graphics needs to make to build a sustainable competitive advantage.