Case Study Description of Inside Intel (A): Integrating DEC Semiconductors
This case illustrates the challenges facing Intel as it attempts to manage the post-acquisition integration of DECs semiconductors businesses. Additional emphasis is placed on how Intel developed a post-acquisition integration capability and on the way it is currently structured to manage the acquisition process.
Swot Analysis of "Inside Intel (A): Integrating DEC Semiconductors" written by Robert Crawford, Maurizio Zollo includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Intel Semiconductors facing as an external strategic factors. Some of the topics covered in Inside Intel (A): Integrating DEC Semiconductors case study are - Strategic Management Strategies, Mergers & acquisitions and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Inside Intel (A): Integrating DEC Semiconductors casestudy better are - – there is backlash against globalization, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%,
geopolitical disruptions, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Inside Intel (A): Integrating DEC Semiconductors
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Inside Intel (A): Integrating DEC Semiconductors case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Intel Semiconductors, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Intel Semiconductors 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 Inside Intel (A): Integrating DEC Semiconductors can be done for the following purposes –
1. Strategic planning using facts provided in Inside Intel (A): Integrating DEC Semiconductors case study
2. Improving business portfolio management of Intel Semiconductors
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 Semiconductors
Strengths Inside Intel (A): Integrating DEC Semiconductors | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Intel Semiconductors in Inside Intel (A): Integrating DEC Semiconductors Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Intel Semiconductors 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.
High brand equity
– Intel Semiconductors has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Intel Semiconductors to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Intel Semiconductors
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Intel Semiconductors does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Inside Intel (A): Integrating DEC Semiconductors 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.
Innovation driven organization
– Intel Semiconductors is one of the most innovative firm in sector. Manager in Inside Intel (A): Integrating DEC Semiconductors Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Strategy & Execution industry
– Inside Intel (A): Integrating DEC Semiconductors firm has clearly differentiated products in the market place. This has enabled Intel Semiconductors to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Intel Semiconductors to invest into research and development (R&D) and innovation.
Learning organization
- Intel Semiconductors 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 Semiconductors is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Inside Intel (A): Integrating DEC Semiconductors Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Intel Semiconductors 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 Crawford, Maurizio Zollo 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.
Diverse revenue streams
– Intel Semiconductors is present in almost all the verticals within the industry. This has provided firm in Inside Intel (A): Integrating DEC Semiconductors case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High switching costs
– The high switching costs that Intel Semiconductors 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.
Successful track record of launching new products
– Intel Semiconductors has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Intel Semiconductors 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Intel Semiconductors digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Intel Semiconductors 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.
Weaknesses Inside Intel (A): Integrating DEC Semiconductors | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Inside Intel (A): Integrating DEC Semiconductors are -
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 Semiconductors supply chain. Even after few cautionary changes mentioned in the HBR case study - Inside Intel (A): Integrating DEC Semiconductors, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Intel Semiconductors vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Intel Semiconductors is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Intel Semiconductors needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Intel Semiconductors to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert Crawford, Maurizio Zollo suggests that, Intel Semiconductors 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Intel Semiconductors 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.
Capital Spending Reduction
– Even during the low interest decade, Intel Semiconductors 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.
No frontier risks strategy
– After analyzing the HBR case study Inside Intel (A): Integrating DEC Semiconductors, 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Intel Semiconductors is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Inside Intel (A): Integrating DEC Semiconductors can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Intel Semiconductors products
– To increase the profitability and margins on the products, Intel Semiconductors needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Intel Semiconductors 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.
Need for greater diversity
– Intel Semiconductors 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.
Slow to strategic competitive environment developments
– As Inside Intel (A): Integrating DEC Semiconductors HBR case study mentions - Intel Semiconductors 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.
Opportunities Inside Intel (A): Integrating DEC Semiconductors | 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 Inside Intel (A): Integrating DEC Semiconductors are -
Buying journey improvements
– Intel Semiconductors can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Inside Intel (A): Integrating DEC Semiconductors 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 Intel Semiconductors in the consumer business. Now Intel Semiconductors 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 Semiconductors has opened avenues for new revenue streams for the organization in the industry. This can help Intel Semiconductors to build a more holistic ecosystem as suggested in the Inside Intel (A): Integrating DEC Semiconductors case study. Intel Semiconductors can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Intel Semiconductors 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 Intel Semiconductors to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Intel Semiconductors 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Intel Semiconductors is facing challenges because of the dominance of functional experts in the organization. Inside Intel (A): Integrating DEC Semiconductors 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Intel Semiconductors 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.
Learning at scale
– Online learning technologies has now opened space for Intel Semiconductors 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.
Leveraging digital technologies
– Intel Semiconductors 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.
Manufacturing automation
– Intel Semiconductors 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.
Building a culture of innovation
– managers at Intel Semiconductors 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.
Using analytics as competitive advantage
– Intel Semiconductors 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 Inside Intel (A): Integrating DEC Semiconductors - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Intel Semiconductors to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Intel Semiconductors 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 Inside Intel (A): Integrating DEC Semiconductors External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Inside Intel (A): Integrating DEC Semiconductors are -
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. Intel Semiconductors can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Semiconductors 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.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Intel Semiconductors business can come under increasing regulations regarding data privacy, data security, etc.
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 Intel Semiconductors.
Consumer confidence and its impact on Intel Semiconductors 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Intel Semiconductors with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Intel Semiconductors
– 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 Semiconductors.
Stagnating economy with rate increase
– Intel Semiconductors 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Intel Semiconductors 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 Inside Intel (A): Integrating DEC Semiconductors .
Shortening product life cycle
– it is one of the major threat that Intel Semiconductors is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Intel Semiconductors 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.
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 Semiconductors in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Inside Intel (A): Integrating DEC Semiconductors 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 Inside Intel (A): Integrating DEC Semiconductors 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 Inside Intel (A): Integrating DEC Semiconductors 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 Inside Intel (A): Integrating DEC Semiconductors 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 Inside Intel (A): Integrating DEC Semiconductors 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 Semiconductors needs to make to build a sustainable competitive advantage.