Is Intel’s Business Model Fit For The Future Case Solution
Political Factor
Political Factor
Political factor that can impact the Intel Corporation’s long-term profitability in certain countries or markets are: pricing regulations, trade regulations and tariff related to the technology anti- trust law related to semiconductor, taxation and tax rates.
Economical Factor
Economic factors include: inflation rates, interest rates and exchange rates. Intel Corporation can use the domestic economic factors, such as: growth rate of the company, inflation rate pertains to the company and the industry’s related economic indicators.
Social Factor
Social culture and behavior influence the organizational culture in the environment. The social factors that Intel leaders need to look for, are: demographics and demographic capabilities.
Technological Factor
The technical analysis includes: several impacts, which are: the latest technological developments from of Intel’s competitors, the impact of the technology on product delivery, the impact on the semiconductor’s cost structure and the technology’s speed.
Legal Factor
Intel must consider legal factors, such as: the copyright claim, patents claim, intellectual property claims and laws and several other laws, when entering into the new markets.
Intel’s Company Current Strategy
The company’s strategy is focus on data-centric business domains and address the connection to billions of smart devices around the world. The year 2014 was a turning point, with the definition of new operating segments and key launches in big data and IoT, which kick started the company's new focus. Since then, the company worked on establishing multiple partnerships with research groups and companies, in areas as diverse as quantum computing, mobile payments, cloud and data centers and self-driving vehicles.
Intel launched products and solutions not only in its core business of client computing but also in artificial intelligence, data security and even smart devices.
Intel Company’s Competitive Advantage
With a strategic shift from pc-centric to a data- centric; Intel’s was examining to expand its competitive advantage to end-to-end markets, for example: the integration and acquisition of Mobil-eye. Intel was attempting to pursue an end to end solution,focused on the vertical integration of its microprocessor products application to computer vision software for autonomous vehicle and big data process and AI machine learning, software solutions and design.
VRIO Analysis (Resources and Capabilities)
See Exhibit 1
Main Reason for Recommendation
Intel Corporation’s headquarters is located in Santa Clara, California, (US) Intel should move from centralized method to decentralized method. Intel should expand its business and make origins all around the world, for example in countries like Australia, United Kingdom, Canada, Asian countries and other European countries. In each origin,Intel should hire a professional team as well as the head of origins to operate and work under rules and procedures set by Intel, and to work independently.
Financial Performance Implications on Recommendations
Intel would-require large investments to operate and run origin in every country,as increased investments will increase chances for the company to have an increased revenue and profits generation, because with an increase in its profits; the company would be able to provide good dividends to its shareholders, and can invest in more fixed assets and avail future opportunities.........................
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