Strategic Management: Intel Corporation (Essay Sample)

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Intel Corporation
Intel Corporation is a multinational company that deals with technology. Gordon a chemist and Robert a physicist founded it in 1968. The corporation has grown to become one of the highest valued and largest chipmakers in terms of revenue through the years.
Intel's success can be attributed to its strategy of product diversification. The logic behind this strategy is to shift focus. The company uses a horizontal integration strategy where it creates products and services that are not related to initial products and services. This strategy helps the company to capture and maintain a stable position in the market.
However, introducing a new product in the market is not an easy thing since the perception of the consumer is unknown. Intel on its part mitigates this risk by investing in thorough market research. They conduct researches on what the consumers need and then create them. Again, since Intel has already established a strong market brand, it makes it easy for the market to trust any new product that the company produces. By producing non-existent products now and then, the company manages to shift the focus of both the consumers and competitors. When the competitors are busy trying to create a similar product, the consumers are busy buying the Intel’s invention. This way, the company is always ahead in the market.
Intel generates most of its revenue from the processors that power PCs. Its’ dominance in this market helps it generate high profits margins. The company also has a second business of data segment center. It consists of processors used in servers. Though Intel has a very high stability in the market now, there are threats that could greatly affect their business.
Intel’s chips are based on the x86 architecture, which has dominated the server market for a long time. International business machines (IBM) who are competitors of Intel also have power chips that are a good alternative to Intel. Until recently, buying power machines through IBM directly was the only way and this was not appealing to cloud computing companies. To solve this IBM created a foundation known as OpenPower. Through this foundation, the power processors are available to third party manufacturers. The advantage of IBM is that the power architecture has been existing for a long time and their chips are designed for high performance and big data workloads. Where perfo...