Is Intel's Business Model Fit For the Future?
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 [he 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?