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Case
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Reference no. 9-706-437
Published by: Harvard Business Publishing
Originally published in: 2005
Version: 12 October 2005

Abstract

Buoyed by strong recent sales growth but humbled by failed strategic bets and other missteps, Intel in 2005 initiated a major reorganization. Under its new Chief Executive Officer, Paul Otellini, the company shifted toward a ‘platform’ model, inspired by the success of its Centrino mobile-computing product. That model led Intel toward development of not just faster computer chips - the historic source of its dominance of the microprocessor industry - but also of products that bundled ingredients in ways that served specific usability needs. To support such products, Intel continued to invest heavily both in manufacturing capacity and new chip technologies. Meanwhile, the company faced strong challenges from competing chip makers, particularly Advanced Micro Devices. Outlines Intel''s strategic reorientation, its competitive environment, and several of its key new intiatives. Covers Intel''s Itanium server product, its new Viiv platform, its investment in WiMax, and its recent deal with Apple Computer.
Location:
Industry:
Size:
85,000 employees, USD34 billion revenues
Other setting(s):
2003-2005

About

Abstract

Buoyed by strong recent sales growth but humbled by failed strategic bets and other missteps, Intel in 2005 initiated a major reorganization. Under its new Chief Executive Officer, Paul Otellini, the company shifted toward a ‘platform’ model, inspired by the success of its Centrino mobile-computing product. That model led Intel toward development of not just faster computer chips - the historic source of its dominance of the microprocessor industry - but also of products that bundled ingredients in ways that served specific usability needs. To support such products, Intel continued to invest heavily both in manufacturing capacity and new chip technologies. Meanwhile, the company faced strong challenges from competing chip makers, particularly Advanced Micro Devices. Outlines Intel''s strategic reorientation, its competitive environment, and several of its key new intiatives. Covers Intel''s Itanium server product, its new Viiv platform, its investment in WiMax, and its recent deal with Apple Computer.

Settings

Location:
Industry:
Size:
85,000 employees, USD34 billion revenues
Other setting(s):
2003-2005

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