Intel Centrino in 2007: A New "Platform" Strategy for Growth SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Intel Centrino in 2007: A New "Platform" Strategy for Growth
Creating Centrino required Intel to make major changes to its strategy and organization. The development of Centrino was part of Intel's "right hand turn" toward increased performance measures, including improvements coming from increased power efficiencies and away from maximizing processor clock speed. This strategic shift, together with the introduction of new multi-core architectures, fundamentally changed the company's definition of success for the future. It was a dramatic move forced on the company, in part, by physics and changing industry and competitive forces; but also made possible, in part, by a radically innovative microprocessor architecture developed by its scrappy, geographically distant microprocessor design center in Israel.
Authors :: Robert A. Burgelman, Philip E. Meza, Evan Barrett
Swot Analysis of "Intel Centrino in 2007: A New "Platform" Strategy for Growth" written by Robert A. Burgelman, Philip E. Meza, Evan Barrett includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Centrino Microprocessor facing as an external strategic factors. Some of the topics covered in Intel Centrino in 2007: A New "Platform" Strategy for Growth case study are - Strategic Management Strategies, Strategy, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Intel Centrino in 2007: A New "Platform" Strategy for Growth casestudy better are - – wage bills are increasing, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion,
geopolitical disruptions, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Intel Centrino in 2007: A New "Platform" Strategy for Growth
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Intel Centrino in 2007: A New "Platform" Strategy for Growth case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Centrino Microprocessor, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Centrino Microprocessor 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 Centrino in 2007: A New "Platform" Strategy for Growth can be done for the following purposes –
1. Strategic planning using facts provided in Intel Centrino in 2007: A New "Platform" Strategy for Growth case study
2. Improving business portfolio management of Centrino Microprocessor
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 Centrino Microprocessor
Strengths Intel Centrino in 2007: A New "Platform" Strategy for Growth | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Centrino Microprocessor in Intel Centrino in 2007: A New "Platform" Strategy for Growth Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Centrino Microprocessor digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Centrino Microprocessor 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.
Learning organization
- Centrino Microprocessor 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 Centrino Microprocessor is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Intel Centrino in 2007: A New "Platform" Strategy for Growth Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Strategy & Execution field
– Centrino Microprocessor 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 Centrino Microprocessor in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Centrino Microprocessor 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 Centrino in 2007: A New "Platform" Strategy for Growth - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Centrino Microprocessor 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, Philip E. Meza, Evan Barrett 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.
Successful track record of launching new products
– Centrino Microprocessor has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Centrino Microprocessor 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.
Strong track record of project management
– Centrino Microprocessor is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Intel Centrino in 2007: A New "Platform" Strategy for Growth 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
– Centrino Microprocessor is one of the most innovative firm in sector. Manager in Intel Centrino in 2007: A New "Platform" Strategy for Growth Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Centrino Microprocessor in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Strategy & Execution industry
– Intel Centrino in 2007: A New "Platform" Strategy for Growth firm has clearly differentiated products in the market place. This has enabled Centrino Microprocessor to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Centrino Microprocessor to invest into research and development (R&D) and innovation.
Organizational Resilience of Centrino Microprocessor
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Centrino Microprocessor does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Intel Centrino in 2007: A New "Platform" Strategy for Growth | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Intel Centrino in 2007: A New "Platform" Strategy for Growth are -
Slow to strategic competitive environment developments
– As Intel Centrino in 2007: A New "Platform" Strategy for Growth HBR case study mentions - Centrino Microprocessor 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.
Capital Spending Reduction
– Even during the low interest decade, Centrino Microprocessor 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.
Lack of clear differentiation of Centrino Microprocessor products
– To increase the profitability and margins on the products, Centrino Microprocessor needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Centrino Microprocessor 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Intel Centrino in 2007: A New "Platform" Strategy for Growth, it seems that the employees of Centrino Microprocessor 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Intel Centrino in 2007: A New "Platform" Strategy for Growth, in the dynamic environment Centrino Microprocessor has struggled to respond to the nimble upstart competition. Centrino Microprocessor has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Centrino Microprocessor 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.
Products dominated business model
– Even though Centrino Microprocessor 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 Centrino in 2007: A New "Platform" Strategy for Growth should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Intel Centrino in 2007: A New "Platform" Strategy for Growth 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 Centrino in 2007: A New "Platform" Strategy for Growth can leverage the sales team experience to cultivate customer relationships as Centrino Microprocessor is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Centrino Microprocessor is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Centrino Microprocessor needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Centrino Microprocessor to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Intel Centrino in 2007: A New "Platform" Strategy for Growth, 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 Centrino in 2007: A New "Platform" Strategy for Growth | 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 Centrino in 2007: A New "Platform" Strategy for Growth are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Centrino Microprocessor 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 Centrino in 2007: A New "Platform" Strategy for Growth, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Centrino Microprocessor 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.
Developing new processes and practices
– Centrino Microprocessor 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.
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. Centrino Microprocessor 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. Centrino Microprocessor 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.
Manufacturing automation
– Centrino Microprocessor 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.
Creating value in data economy
– The success of analytics program of Centrino Microprocessor has opened avenues for new revenue streams for the organization in the industry. This can help Centrino Microprocessor to build a more holistic ecosystem as suggested in the Intel Centrino in 2007: A New "Platform" Strategy for Growth case study. Centrino Microprocessor can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Centrino Microprocessor 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 Centrino in 2007: A New "Platform" Strategy for Growth - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Centrino Microprocessor to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Centrino Microprocessor 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Centrino Microprocessor 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 Centrino Microprocessor to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Centrino Microprocessor 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Centrino Microprocessor can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Centrino Microprocessor 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.
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. Centrino Microprocessor can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Intel Centrino in 2007: A New "Platform" Strategy for Growth External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Intel Centrino in 2007: A New "Platform" Strategy for Growth are -
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.
Environmental challenges
– Centrino Microprocessor 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. Centrino Microprocessor can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Regulatory challenges
– Centrino Microprocessor 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.
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 Centrino Microprocessor business can come under increasing regulations regarding data privacy, data security, etc.
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. Centrino Microprocessor needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Centrino Microprocessor 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Centrino Microprocessor with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Centrino Microprocessor in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Centrino Microprocessor is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Centrino Microprocessor 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 wage structure of Centrino Microprocessor
– 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 Centrino Microprocessor.
Consumer confidence and its impact on Centrino Microprocessor 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.
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. Centrino Microprocessor 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 Centrino in 2007: A New "Platform" Strategy for Growth 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 Centrino in 2007: A New "Platform" Strategy for Growth 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 Centrino in 2007: A New "Platform" Strategy for Growth 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 Centrino in 2007: A New "Platform" Strategy for Growth 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 Centrino in 2007: A New "Platform" Strategy for Growth 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 Centrino Microprocessor needs to make to build a sustainable competitive advantage.