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Strategic Dissection

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Intel Corporation was established in 1968, California. It designs and manufactures advanced integrated digital technology platforms. First and foremost, the company sells its products to original equipment manufacturers, design manufactures as well as industrial and communications equipment manufacturers. The platforms of Intel Corporation are in use in such applications as PCs, data centers, tablets, smartphones, automobiles, automated factory systems, and medical devices. Moreover, Intel Corporation produces software and provides services essentially centered on security and technology integration (Company Overview).

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Intel Corporation uses various strategies to keep its leading position in business. Firstly, the company applies forward integration strategy, which presupposes gaining ownership or increased control over distributors or retailers (David, 2011). According to the official website of Intel Corporation, it invests in companies around the world. Those investments are on companies and initiatives to stimulate growth in the digital economy. Such growth will lead to creating new business opportunities for Intel and expanding market for its products (Company Strategy). Besides, Intel Corporation uses intensive strategies such as market penetration, market development and product development (David, 2011). For example, Intel introduces a new microarchitecture approximately every two years. In addition, the company mostly manufactures the products in its own facilities. This step allows Intel to optimize performance, reduce its time to market, and scale new products faster. It develops market through investing other companies and initiatives all over the world (Company Strategy).

Furthermore, Intel applies concentric diversification strategy, which presupposes adding new but related products or services (David, 2011). For instance, the manufacture expands platforms into adjacent market segments such as smartphones, tablets, cars, and the embedded world. Besides, Intel changes its primary focus from the design and manufacture of semiconductor chips for PCs and servers to the delivery of solutions consisting of hardware and software platforms and supporting services. In addition, the company is working on innovating of such major features of computing as energy-efficient performance, connectivity, and security (Company strategy).

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Intel Corporation clearly uses different strategies at the corporate, business and functional levels. For example, corporate level strategy deals with identifying of goals and issues of the company, especially the type of business and ways of the company’s management (David, 2011). Considering Intel Corporation, its main goal is to be outstanding computing solutions company that takes leading position in digital world. Chief executives of the company see Intel’s future in proliferation of the Internet and cloud computing. However, the company needs to follow several steps in order to succeed. Fundamentally, it must ensure that Intel® technology, cloud computing and the data centers are the best in the digital market. Secondly, Intel is supposed to expand platforms into related market segments. Thirdly, Intel must provide customers with secure, consistent, fascinating and personalized computing experience. Lastly, the company’s technologies must be energy-efficient. The ways of achieving those goals are using company’s core assets such as silicon and process technology, architecture and platforms, global presence, strong relationships across the industry, and brand recognition. Besides, company continues to develop its technologies for new market segments and it also believes that need for for greater server infrastructure will increase due to increasing demand for Internet and cloud computing (Company Strategy).

Strategies at business level are more about developing of goods and their defense from competitors. For example, Michael Porter distinguished three generic strategies (cost leadership, differentiation and focus) that can be used at this level. They are cost leadership, differentiation and focus (David, 2011). Therefore, Intel Corporation applies differentiation strategy, integrating multiple hardware and software technologies that are able to support different operating systems. This strategy differentiates them from the competitors. In addition, Intel uses focus strategy. For instance, the company is focused on platforms that incorporate various components and technologies. Overall, Intel Corporation primary aimes at developing new technologies that are able to make customers’ experience highly efficient, exciting and secure (Company Strategy). Moreover, it applies cost leadership strategies, offering affordable products to a big group of customers. Such method made company’s goods mass-produced.

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Function level is level of different operating departments of a company such as finance, marketing, manufacturing, information systems, R&D and HR managers. Therefore, strategies at this level are concerned with efficient executing of strategies defined by higher levels of an organization (David, 2011). For example, strategy of R&D is to develop word-class technologies, particularly in the design and manufacture of integrated circuits (Research and Development). The strategy of marketing is to build a strong brand, well-known Intel corporate brand. The strategy of sales presupposes selling products primary to OEMs and ODMs. In addition, the company sells the goods to other manufacturers. Besides, its customers include those who buy PC components and our other products through distributor, reseller, retail, and OEM channels in different countries of the world (Sales and Marketing).

To sum it up, Intel Corporation uses wide range of strategies that made the company one of the leaders in the digital economy. Despite the manufacture’s success, it continues to develop new products, expand market segments and invest into innovative technologies and initiatives.

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