Key Strategies of Intel Corp.

Intel Corp.

Intel Corp., just like other reputable companies in different sectors of retail, technology, insurance industries and so on, employs a set of unique strategies that focus on the company’s growth, customers satisfaction, and most importantly, generation of revenue. The company aims at being the best semiconductor manufacturing and distribution company in this modern and technological era. As the rapid evolution of technology unfolds, the company focuses more on being a data-centered company than just focusing of PC manufacturing. This diversification yields tendency of new opportunities. According to the company’s website, in addition to the numerous strategies it is embarking on, the company relies on four key strategies.

In this article, I’m going to shed more light on these strategies and the many other strategies Intel Corp. employs to remain very competitive in the semiconductor manufacturing industry. Without further ado, let’s dive in.

Improving Execution

Intel Corp. is very concerned about and very committed to ensuring its customer’s satisfaction. According to the company’s online website, the company is committed to prolonged product innovation, as its customers’ success is its obsession. It further added that the company’s mission is to deliver technology leadership and sustainable high-quality commodities that its customers demands and expect. In other to improve the company’s execution, it has employed these approaches.

Process and packaging: The company is developing a new generation of compute machines that combine several advanced technologies with rapid and very good performance, minimal power packaging  like Embedded Multi-die Interconnect Bridge (EMIB) and Foveros, the first stack processing components in the market.

 xPU architectures: This strategy involves Intel’s activities in developing processors that support all four of the main computing models and architecture, ushering in a time of heterogeneous computing.

Memory: The company is working of several investments to ensure that its offers high quality memory chips. According to the company’s website, it is creating devices to upend the hierarchy of memory and storage using Intel® 3D NAND and Intel® OptaneTM technology.

Advanced interconnect: Intel provides cutting-edge technology covering on-die, on-package, data center, and long-distance networks that range from very little distance to extremely lengthy ones.

Security: According to Intel, it is committed to helping its clients and business partners find fresh, creative solutions to enhance security. In this data-centric world, the company is laying a more reliable foundation with the help of partners and clients.

Software: Across all workloads, domains, and architectures, Intel’s software maximizes the true potential of hardware devices. This strategy is used by the company to increase the amount of purchasing clients due to the versatility of the software.

Diversification

 The company is advancing innovation and working hard to contribute even more to the success of its clients. Intel Corp.’s chances of expanding within an approximated $300 billion total addressable market have increased as a result of its expansion into new areas and technological diversification. As a matter of fact, the company’s technologies go far beyond computers and servers, empowering businesses to address problems in the cloud, the Internet of Things (IoT), artificial intelligence (AI), 5G, autonomous transportation, and the intelligent edge.

CEO, Brian Krzanich blogged about this strategy and provided more details. It was obvious that the author was trying to explain Intel’s goals in layman’s terms. The company’s future, including its dedication to the PC market and how mobility fits into its new strategy, were further clarified in a session had with some of intel’s company executives.

Here is my updated analysis of Intel’s reorganization and new strategy in response to that debate. The Internet of Things (IoT), memory, and programmable solutions are Intel’s four primary growth sectors, according to the company. However, it’s important to distinguish these growth sectors from business operations. That’s what initially confused a lot of people, and it’s the reason they might ask initial question, “Where’s the PC? ” in Intel’s new business plan. I personally believed that the company’s objectives are its growth sectors, with the data center being the top focus. For example, I think the newly embarked strategies have given the impression that Intel is turning away from the PC market, but do not be confused as the company is only embracing diversification. Murthy Renduchintala, an executive employee of the company, was hired to concentrate on Intel’s strategy and execution across the company’s client (Intel speak for PC and mobile devices), communications, device, and IoT segments, now oversees Intel’s PC division, which generates the majority of the firm’s revenue and profit. By bringing these units together under one roof, Intel hopes to spur innovation in the quickly expanding IoT market through aggressive and ongoing PC business innovation.

Deploying Capital

Intel’s capital allocation strategy places a strong emphasis on maximizing stockholder value. To ensure the success of this strategy, the company has three major points to work on:

-Enhancing the firms competitive position through R&D and capital expenditures.

-Making investments globally in businesses that will facilitate its strategic goals and promote the expansion of data-centric possibilities.

-Providing cash back to shareholders through dividends and share buyback programs. All of this is done while preserving an investment-grade credit rating and sustaining financial freedom thanks to a strong balance sheet. From 2015 to 2019, Intel distributed 90% of free cash flow to investors.

Also, the company utilizes a “Smart Capital” approach, which is designed to assist fund growth while fostering flexibility and generating superior returns on investments. This the foundation of the company’s long-term growth plan. Intel plans to use a conservative tactic to investing as part of the Smart Capital strategy and to use government incentives, customer participation, and other innovative collaborations as offsets to capital expenditures. This will enable the business to manage its margin structure and capital expenditures while promptly responding to market prospects and gaining share. Smart Capital’s essential components include:

Government Incentives: As it develops sophisticated fabs that safeguard domestic production and present opportunities for boosting economic growth in local areas, Intel continues to collaborate with governments in the U.S. and Europe to advance incentives for local production capabilities for semiconductors with very high quality.

Customer Commitments: Intel Foundry Services is in close contact with prospective clients, some of whom have expressed a desire to pay in advance to reserve capacity. As a result, the company benefits from contracted volume, which lowers investment risk and creates capacity corridors for our foundry clients.

Lead Technology Inflection

Intel’s strategic goal is to take the lead in important technological developments that are radically altering communications and computers. The three main forces behind change that the company is currently witnessing are AI, network revolution brought on by the switch to 5G, and the emergence of the intelligent edge. The company envisions a world in which Intel® technologies empower its clients to process anything from driverless vehicles to tiny low-power edge devices, moving data quicker, storing more data, and processing it all and it is making numerous investments to make sure the vision becomes reality.

Evolution of Culture

The company has embarked on a thrilling adventure to change from a PC-centric business to a technology leader committed to releasing the power of data and enhancing the lives of everyone on the planet. This approach takes into account new markets, clients, goods, and competitors, and it calls for a challenger mindset. To facilitate incredible execution and spur on our growth, Intel’s culture falls in line with the journey.

Strengthening Its Core With Diverse Talents

At its core, Intel Corp. is bolstered by highly competent, intelligent, and diverse individuals who have the capacity to advance in everything as a cohesive team. Its powerful and wealthy culture has kept a strong foundation throughout the past 50 years. The Intel culture emphasizes innovation, product leadership, deliberate corporate governance leadership, and partnerships with vendors, clients, government agencies, and local communities to create and implement sustainable business operations. The business is proud of its staff members who are overcoming obstacles to change the company’s practices, priorities, and beliefs in order to support each person in achieving their full potential. The gifted and proficient workforce at Intel is succeeding in fast-paced, cutthroat businesses while having a good influence on its local communities.