A Study on Technology Firm’s Strategic Responses Facing Industry Convergence: The Case of Intel’s Strategy Evolution
Date Issued
2014
Date
2014
Author(s)
Hsu, Chih-Wei
Abstract
When facing the opportunities and challenges imposed by industry convergence coming from technology/business model innovation and de-regulation, it is crucial to recognize the change and discountinuity in industry properties. Corporates need to re-evaluate, extend and adjust its core competence as well as creating new horizontal competence through strategic alliance, M&A and VC investment in order to keep competitive advantage.
In this study, we first review Intel’s core competence that has been built up during the PC era. With these competences, Intel set forth her strategy in internet era by leveraging her pricing power through using processer’s value and grow shipment enhancing with network externality. Given price power and quantity, Intel monetizes her growth in network economics.
Using the same rationale, Intel extends her “product complement” convergence in mobile computing industry, but its core products suffer serious competition from others using “substitute technology” and “subsitue product”. Intel also lost WiMAX war because she is unfamiliar with the nature of telecommunication industry. Therefore, Intel gradually became a follower rather than a leader as she originally planned to be.
After new CEO Brian on borad, we expect to see that Intel will change its course of growth from industry convergence to being a key semiconductor supplier. And Intel will repack her strength in technology leadership, scale and efficiency in order to return to mobile computing market.
Subjects
產業聚合
英特爾
核心能耐
行動運算
Type
thesis
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