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, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, technology disruption, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, 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 -
Training and development
– Centrino Microprocessor has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Intel Centrino in 2007: A New "Platform" Strategy for Growth 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.
High switching costs
– The high switching costs that Centrino Microprocessor 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 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.
Cross disciplinary teams
– Horizontal connected teams at the Centrino Microprocessor 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.
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.
High brand equity
– Centrino Microprocessor has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Centrino Microprocessor to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Centrino Microprocessor 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 Centrino in 2007: A New "Platform" Strategy for Growth HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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.
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.
Ability to recruit top talent
– Centrino Microprocessor is one of the leading recruiters in the industry. Managers in the Intel Centrino in 2007: A New "Platform" Strategy for Growth are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Intel 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 -
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Centrino Microprocessor is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Intel Centrino in 2007: A New "Platform" Strategy for Growth can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Intel Centrino in 2007: A New "Platform" Strategy for Growth 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 Centrino Microprocessor has relatively successful track record of launching new products.
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.
Need for greater diversity
– Centrino Microprocessor 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.
Low market penetration in new markets
– Outside its home market of Centrino Microprocessor, firm in the HBR case study Intel Centrino in 2007: A New "Platform" Strategy for Growth needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Centrino Microprocessor supply chain. Even after few cautionary changes mentioned in the HBR case study - Intel Centrino in 2007: A New "Platform" Strategy for Growth, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Centrino Microprocessor vulnerable to further global disruptions in South East Asia.
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.
Skills based hiring
– The stress on hiring functional specialists at Centrino Microprocessor 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.
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.
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.
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.
Buying journey improvements
– Centrino Microprocessor can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Intel Centrino in 2007: A New "Platform" Strategy for Growth 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.
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.
Better consumer reach
– The expansion of the 5G network will help Centrino Microprocessor to increase its market reach. Centrino Microprocessor 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Centrino Microprocessor 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.
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.
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.
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.
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.
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 Centrino Microprocessor in the consumer business. Now Centrino Microprocessor can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Centrino Microprocessor is facing challenges because of the dominance of functional experts in the organization. Intel Centrino in 2007: A New "Platform" Strategy for Growth 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.
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 -
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.
Technology acceleration in Forth Industrial Revolution
– Centrino Microprocessor has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Centrino Microprocessor 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.
High dependence on third party suppliers
– Centrino Microprocessor 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.
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.
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.
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. Centrino Microprocessor can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Centrino Microprocessor.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Intel Centrino in 2007: A New "Platform" Strategy for Growth, Centrino Microprocessor may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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.
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.
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.
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.