Ref: IMD-7-2154

Case study

Reference: IMD-7-2154

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Is Intel’s business model fit for the future?

Stefan Michel

By Professor Stefan MichelStefan Michel, Kirill Astapov, Tania Correia Baptista, Pavel Vagero and Takeshi Yamada

In 2018 Intel celebrates 50 years in business amidst "a corporate transformation as we grow beyond our traditional PC and server businesses into data-rich markets addressing the explosive demands to process, analyze, store, and transform data."

In this case, we will look into the history of Intel and the semiconductor Industry background, which provide a starting framework to compare the business models and value chain of Intel and one of its competitors, ARM.

A closer look at previous moves shows that Intel has made bets in many different fields which today are successful and yet is still struggling. Competitors such as ARM seemed to have a more agile value chain and reaped its benefits in the past.

However, ARM also seems to be stagnating, thus raising doubts whether its model is really a map to follow. In this context, it js unclear whether Intel is agile enough to respond to changes in the industries it operates in.

Considering the industry environment, what strategy should be chosen based on challenges in environment and existing resources and capabilities? Robert Noyce, one of the company's founders, advised: "Don't be encumbered by hist01Y, go off and do something wonderful." So what will the next wonderful thin be for Intel?

Learning Objective

  1. Analyze competitive advantage, resource and capability in microprocessor industry.
  2. Analyze strategic business model shift from successful traditional vertical integrated model to more agile models.
  3. Apply Porter's 5 Forces Competition Framework for Intel, identify KSF In semiconductor industry, understand the role of resources and key competences for future development of the company, as well as acquisition as possibility to gain new competences.
Settings United States of America
2015 2019, with history references that go back to 1968
Type Published Sources
Copyright ©IMD 2020
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Reference: IMD-7-2154

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Reference: IMD-7-2154

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