Intel's Mobile Strategy in 2015 and Beyond SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
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 - – central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, there is backlash against globalization, wage bills are increasing, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy,
challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
Low bargaining power of suppliers
– Suppliers of Mobile Intel's in the sector have low bargaining power. Intel's Mobile Strategy in 2015 and Beyond has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mobile Intel's to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
Strong track record of project management
– Mobile Intel's 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 lead change in Strategy & Execution field
– Mobile Intel's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Mobile Intel's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
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.
Learning organization
- Mobile Intel's 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 Mobile Intel's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Intel's Mobile Strategy in 2015 and Beyond Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Mobile Intel's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Intel's Mobile Strategy in 2015 and Beyond 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.
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.
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.
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 -
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert A. Burgelman, Debra Schifrin suggests that, Mobile Intel's 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Intel's Mobile Strategy in 2015 and Beyond 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 Mobile Intel's has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Mobile Intel's 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. Mobile Intel's 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.
Lack of clear differentiation of Mobile Intel's products
– To increase the profitability and margins on the products, Mobile Intel's needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Mobile Intel's 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.
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.
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.
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.
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.
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 -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mobile Intel's is facing challenges because of the dominance of functional experts in the organization. Intel's Mobile Strategy in 2015 and Beyond 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.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Mobile Intel's to increase its market reach. Mobile Intel's 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.
Building a culture of innovation
– managers at Mobile Intel's 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
– 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.
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.
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.
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.
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.
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 Mobile Intel's 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.
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. Mobile Intel's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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 -
High dependence on third party suppliers
– Mobile Intel's 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.
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.
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 Mobile Intel's business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
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.
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 Mobile Intel's in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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 .
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.
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.
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.
