Case Study Identifying Creating New Markets New Strategy Global Leader Introduction Nearly Q28171525

Case Study: Identifying and creating new markets – a newstrategy for a global leader

Introduction

Nearly everyone is aware of Intel. It is the world’s fifth mostvaluable brand valued at around $35 billion. Most of the world’spersonal computers are driven by Intel microprocessors.

By concentrating on producing great microprocessors Intel wasable to leave its competitors behind. The company invested billionsof dollars in highly productive manufacturing plants that couldproduce more processors in a day than some of their rivals couldproduce in a year.

Today Intel is continuing to raise the bar. In January 2006 thecompany launched its new strategy based on identifying and creatingnew markets. Instead of just focusing on personal computers (PCs)Intel will play a key technological role in a range of fieldsincluding consumer electronics, wireless communications andhealthcare.

Intel has been one of the world’s high achieving businesses. Itsglobal appeal is not surprising. In recent years almost every timeyou opened up a laptop you would see that it was labelled ‘Intel@Inside’. Seeing this, the user knew that they had a high performingand reliable computer.

We all want to be able to use more powerful technology, which issimple to operate, and helps us to do things without having tothink about it. However, Intel has moved on. The problem withsimply being a producer of processors is that other firms can moveinto your market. Once they produce similar products the only wayyou can differentiate is by offering lower prices.

Intel’s new strategy is to create lots of different types ofchips and software and then combine them together into platforms. Aplatform is an integrated set of proven technologies designed towork together. They provide people and businesses with improvedcommunications and computing capabilities. These platforms willenable Intel to bring added value for consumers, win a larger shareof consumer expenditure and increase revenue.

Platforms will make life easier for people in a range ofsettings from the home, to business, and medical settings. Intel’svision involves giving people access to easy-to-use technologiesthrough these platforms. It is seeking to continually satisfycustomer requirements by producing a range of new and excitingproducts.

Developing a new strategy

Intel is an ‘ingredient brand’. Its products and processors formpart of the products that consumers purchase. Building keyrelationships with leading electronic firms such as Sony andPhilips is an important strategy. The aim is to provide themanufacturers of products such as laptops, mobile phones andentertainment personal computers with integrated packages of chipsand software – in other words a complete solution.

A key part of Intel’s more integrated platform strategy involvesthe development of several technologies. These improve processorefficiency and allow computer users to take better advantageof:

multi-tasking

security

reliability

manageability

wireless computing capabilities.

Intel’s strategy is to be at the heart of new developments inhome entertainment, security, medical care, etc. Great results areachieved through developing the right products for the rightmarkets before competitors do so.

Restructuring Intel around its market

Intel built its early success on providing ingredients forpersonal computers with its prime driver being technology. It wasdominated by engineers and worked closely with Microsoft and PCmanufacturers such as Dell, Compaq and IBM.

The new strategy continues the emphasis on producing excellentproducts. However, there is now a strong focus on marketing-finding out what customers want and then meeting theirrequirements. Customers need to know what these new products can dofor them. Clear communication is therefore essential. The emphasisis on marketing and communicating with customers about what the newtechnologies can do for them.

Conclusion

Intel is one of the success stories of the high-tech world. Itprovides vital components for personal computing. Now the companyis moving forward into a range of new and exciting products andmarkets with a much stronger focus on marketing

Read the above case study and answer the followingquestions:

1. Investigate how the micro environment and the macroenvironment have an effect on its marketing andbusiness.

2. Analyze the STP (Segmentation, Targeting andPositioning) strategies of the organization. Evaluate its marketingmix which leads to achievement of consumer satisfaction andorganizational goals.

3. Develop strategies that could result in theorganization taking better marketing decisions.

Note the Answers should be computerized and answered indetails – Please do not copy and Paste