Restructuring Intel Inc.
During the last decade Intel was the major player in a monopoly market of computer chips and microprocessors, but it recently it is facing big competition. Intel had lost a great share of the market as new and big competitors had risen to the surface. A host of new products from Advanced Micro Devices Inc. has allowed Intel's biggest competitor in PC microprocessors to steal away market share.
In addition, Intel Inc. had reported great drop in profits (38 percent in first-quarter), which caused the management to plan for a restructuring process.
Intel management main restructuring plan is based on benefiting of its physical resources. These resources are considered variable to Intel as they have the ability to be changed and used to make competitive products. The plan is to product new chips and processors, which will be more competitive in the market, such as "Woodcrest", "
The resources are rare also as Intel was and still the biggest processor and chip manufacturer in the market. Even thought it lost some of the share market, but it’s the main player and has great capabilities and assets.
The imitation of Intel's physical resources is very hard. It has many factories and offices all over the world with around 130,000 employees.
Thesr resources are well organized. The management had redesigned it to deliver much as 40 percent better performance while consuming 40 percent less power.
"You will see a leaner, more agile and more efficient Intel Corp" said Otellini, CEO of Intel.
posted by Eng. Wasim @ 12:09 ص
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