Question

Segmentation strategy can be a significant competitive differentiator for a company. Intel, a pioneer in business segmentation (their “Intel Inside” value proposition is legendary), taps the power of segmentation to target technology markets selling both B2B2B (business-to-business-to-business) and B2B2C (business-to-business-to-consumer). Computer chip manufacturers such as Intel and AMD market to Apple, Dell, Hewlett-Packard and Lenovo for B2B2C and market to companies such as Amazon and HP Enterprises for B2B2B cloud computing.

Intel segments its business units based on analyses of its customers’ markets to determine where it should emphasize its sales and product development efforts. In a 2015 report to analysts, Intel revealed that they are reducing investment spending in software, personal computers and phones and tablets while investing more in data centers with cloud computing, retail solutions, transportation and automotive, smart homes and buildings and industrial and energy. Analysis of these segments will then focus on target companies well positioned in the emerging growth areas they identified.

To Discuss: (Answer 2 of the 3 questions below and reply to 2 or more comments by classmates)

1. How does Intel compete in the Now Economy?

2. Critique Intel’s segmentation with respect to existing, emerging and imagined market opportunities.

3. How do you view the prospects for Intel over the next decade? What strategic changes would you recommend to management?

Answer 1

Answer 1= The main focus of the company is on data centers with cloud computing, retail solutions, transportation and automotive, smart homes and buildings and industrial and energy centres. This will help the company to be future-ready as in future most of the companies will be operating with the help of cloud computing

Answer 2= In my opinion, the company Intel has the right segmentation strategy both in earlier time, present tie and for the future. When the world was looking and investing in software and hardware the company focused more on software, and hardware services. Now the world is going to welcome the new concept of data warehousing, virtual computing, cloud computing thus the company has changed its focus on developing the market on the basis of these services.

Answer 3= The company has a good future as it is making itself future-ready with the investment in cloud computing. However, the biggest challenge for the company will be to maintain the same level of brand value, customer-centric approach and quality of services in the new segments. In fact, now more and new competitors such as Apple, Google are also coming in the area of cloud computing thus the company needs to be more quality and innovation-focused.