Case Study Description of Intel Corp.: Leveraging Capabilities for Strategic Renewal
Traces the history of Intel from its earliest days as a technology-driven memory company to its emergence as an increasingly market-focused microprocessor company with emerging systems capabilities. The focus is on the strategic, organizational, and management adaptation that was required to ensure the company's survival in a highly volatile industry. Under the leadership of Andy Grove and Gordon Moore, Intel is able to overlay its R&D base with manufacturing and marketing capabilities that allow it to continually adapt to changes and renew itself.
Swot Analysis of "Intel Corp.: Leveraging Capabilities for Strategic Renewal" written by Christopher A. Bartlett, Ashish Nanda includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Intel Capabilities facing as an external strategic factors. Some of the topics covered in Intel Corp.: Leveraging Capabilities for Strategic Renewal case study are - Strategic Management Strategies, Corporate governance, IT, Leadership, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Intel Corp.: Leveraging Capabilities for Strategic Renewal casestudy better are - – digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, geopolitical disruptions, increasing household debt because of falling income levels, increasing energy prices,
competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Intel Corp.: Leveraging Capabilities for Strategic Renewal
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Intel Corp.: Leveraging Capabilities for Strategic Renewal case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Intel Capabilities, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Intel Capabilities 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 Corp.: Leveraging Capabilities for Strategic Renewal can be done for the following purposes –
1. Strategic planning using facts provided in Intel Corp.: Leveraging Capabilities for Strategic Renewal case study
2. Improving business portfolio management of Intel Capabilities
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 Intel Capabilities
Strengths Intel Corp.: Leveraging Capabilities for Strategic Renewal | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Intel Capabilities in Intel Corp.: Leveraging Capabilities for Strategic Renewal Harvard Business Review case study are -
Ability to recruit top talent
– Intel Capabilities is one of the leading recruiters in the industry. Managers in the Intel Corp.: Leveraging Capabilities for Strategic Renewal are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Intel Capabilities 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Intel Corp.: Leveraging Capabilities for Strategic Renewal firm has clearly differentiated products in the market place. This has enabled Intel Capabilities to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Intel Capabilities to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Intel Capabilities digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Intel Capabilities 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.
High brand equity
– Intel Capabilities has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Intel Capabilities to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Intel Capabilities in the sector have low bargaining power. Intel Corp.: Leveraging Capabilities for Strategic Renewal has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Intel Capabilities to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Intel Capabilities 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 Intel Capabilities is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Intel Corp.: Leveraging Capabilities for Strategic Renewal Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Intel Capabilities in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Intel Capabilities has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Intel Corp.: Leveraging Capabilities for Strategic Renewal 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.
Strong track record of project management
– Intel Capabilities is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Intel Capabilities 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 Corp.: Leveraging Capabilities for Strategic Renewal - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Intel Capabilities
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Intel Capabilities does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Intel Corp.: Leveraging Capabilities for Strategic Renewal | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Intel Corp.: Leveraging Capabilities for Strategic Renewal are -
Increasing silos among functional specialists
– The organizational structure of Intel Capabilities is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Intel Capabilities needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Intel Capabilities to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Intel Corp.: Leveraging Capabilities for Strategic Renewal 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 Intel Capabilities has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Intel Capabilities 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. Intel Capabilities 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.
Low market penetration in new markets
– Outside its home market of Intel Capabilities, firm in the HBR case study Intel Corp.: Leveraging Capabilities for Strategic Renewal needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Intel Corp.: Leveraging Capabilities for Strategic Renewal, in the dynamic environment Intel Capabilities has struggled to respond to the nimble upstart competition. Intel Capabilities has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Intel Capabilities 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 bargaining power of channel partners
– Because of the regulatory requirements, Christopher A. Bartlett, Ashish Nanda suggests that, Intel Capabilities is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Need for greater diversity
– Intel Capabilities has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Aligning sales with marketing
– It come across in the case study Intel Corp.: Leveraging Capabilities for Strategic Renewal 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 Corp.: Leveraging Capabilities for Strategic Renewal can leverage the sales team experience to cultivate customer relationships as Intel Capabilities is planning to shift buying processes online.
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 Intel Capabilities supply chain. Even after few cautionary changes mentioned in the HBR case study - Intel Corp.: Leveraging Capabilities for Strategic Renewal, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Intel Capabilities vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Intel Corp.: Leveraging Capabilities for Strategic Renewal, 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.
Opportunities Intel Corp.: Leveraging Capabilities for Strategic Renewal | 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 Corp.: Leveraging Capabilities for Strategic Renewal are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Intel Capabilities 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 Corp.: Leveraging Capabilities for Strategic Renewal, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Intel Capabilities can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Intel Capabilities in the consumer business. Now Intel Capabilities 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 Intel Capabilities has opened avenues for new revenue streams for the organization in the industry. This can help Intel Capabilities to build a more holistic ecosystem as suggested in the Intel Corp.: Leveraging Capabilities for Strategic Renewal case study. Intel Capabilities can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Intel Capabilities 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. Intel Capabilities 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.
Using analytics as competitive advantage
– Intel Capabilities 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 Corp.: Leveraging Capabilities for Strategic Renewal - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Intel Capabilities to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Intel Capabilities 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, Intel Capabilities is facing challenges because of the dominance of functional experts in the organization. Intel Corp.: Leveraging Capabilities for Strategic Renewal 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.
Better consumer reach
– The expansion of the 5G network will help Intel Capabilities to increase its market reach. Intel Capabilities 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.
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 Intel Capabilities 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.
Loyalty marketing
– Intel Capabilities 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Intel Capabilities 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.
Developing new processes and practices
– Intel Capabilities 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.
Threats Intel Corp.: Leveraging Capabilities for Strategic Renewal External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Intel Corp.: Leveraging Capabilities for Strategic Renewal are -
Stagnating economy with rate increase
– Intel Capabilities 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.
Consumer confidence and its impact on Intel Capabilities 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.
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 Intel Capabilities in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Intel Capabilities 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.
Regulatory challenges
– Intel Capabilities 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.
Increasing wage structure of Intel Capabilities
– 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 Intel Capabilities.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Intel Capabilities with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Technology acceleration in Forth Industrial Revolution
– Intel Capabilities has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Intel Capabilities 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Intel Capabilities 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, Intel Capabilities 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 Corp.: Leveraging Capabilities for Strategic Renewal .
Environmental challenges
– Intel Capabilities 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. Intel Capabilities can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of Intel Corp.: Leveraging Capabilities for Strategic Renewal 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 Corp.: Leveraging Capabilities for Strategic Renewal 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 Corp.: Leveraging Capabilities for Strategic Renewal 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 Corp.: Leveraging Capabilities for Strategic Renewal 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 Corp.: Leveraging Capabilities for Strategic Renewal 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 Intel Capabilities needs to make to build a sustainable competitive advantage.