Intel: Environmental Challenges

1026 Words4 Pages
1. Since Barrett took over at Intel, he has made a number of changes. The first change was attempting to move into different new markets. This strategy failed, and the company quickly withdrew from these markets. These included network servers and routers and an e-commerce service for small businesses. Another thing that happened was that Barrett engaged in a series of internal reorganizations. This initiative allowed for the company to "avoid duplication and create better coordination." One reorganization created a new wireless unit, and he also created an architecture group. A third major initiative in the past three years was job cuts, in which Intel cut 5000 jobs primarily through attrition. 2. During Barrett's tenure, there were a number of different environmental challenges. The first such challenge came with the 9/11 terrorist attacks. These attacks crippled the US economy, and would eventually spur the war with Iraq. The economy sputtered for a time, and contributing to this was the issue of the dot-com bust. As a result of these changes, Intel was faced with the challenge of a declining sales environment. Firms were not buying because of the environmental uncertainty, and that affected suppliers to business, one of which was Intel. Another environmental change was increased competition. In chips, Intel held a dominant position and really faced serious competition only from one company. That company was AMD, and it had introduced its Athlon chip, and this was
Open Document