Business Strategies of World’s Successful Companies: Intel Corporation’s Winning Business Strategies

By | October 30, 07

Business Strategies of World’s Successful Companies: Intel Corporation’s Winning Business Strategies

Founded about four decades ago as a small business start up by two former colleagues, Intel has changed the world dramatically. This article reveals the business strategies that gave the company such a remarkable lead.

Business Strategy 1: What Possible Future Opportunity Is Your Business Positioned To Take Advantage Of?

A pivoted winning factor in business is to be able to understand present trends, predict future implications and then take position to profit big time if things fell through. And when things eventually happen as envisaged, an industry is unquestionably taken over and your leadership established.

When Intel’s founders Robert Noyce and Gordon Moore decided to form their own company in 1968 after leaving Fairchild Semiconductor, it was more based on their ability to see that someday large-scale integrated (LSI) semiconductor memories would replace the then commonly used standard magnetic core memories considering the greater speed and efficiency of LSI technology.

This strong belief made them to decide to invest their resources into it and to position their business to making semiconductors.

Business Strategy 2: Your Byproduct Can Actually Be A Great Income Earner, You Know!

Most businesses don’t realize that their byproducts, which are derived from the process of creating the main product can be developed and marketed. In actual fact, byproducts can even turn out to be major income earner for you if well harnessed.

Intel’s landmark product, which had a tremendous impact on the computer industry, was the 4004. Introduced in 1971, the 4004, which is the world’s first microprocessor, as well as many of Intel’s best selling products were byproducts discovered from research into creating other products.

Business Strategy 3: Your Market May Be Larger Than You Think

To really understand the true size of your market, you may have to pick a paper and biro and do a little exercise. Think and list out the different possible ways your product can be used.

This list should include both all the ways the product is usually used and the imaginative ways, even if silly, you think it can find usage.

You will be surprised just how this exercise will show your business has a larger market than you thought. And this could help you in creating more products and be innovative.

Intel’s initial product development strategy was to focus on making microprocessor as computer add-on to enable people increase their system’s memory.

However the microprocessor’s enormous potential usage – from calculator to traffic lights to cash register – just about everything – was exposed to Intel when it lunched 8080, an 8-bit microprocessor, the first truly general purpose microprocessor ever made, in 1974 .

Business Strategy 4: Make Constant New Product Creation a Policy

The above heading is actually a warning especially if you are in a fast paced industry, such as the hi-tech industry where innovations take place frequently. Even if your business is the only player in your industry, know that soon, people will come in to compete with you. Therefore, to remain leading you just must keep churning out products.

To fend off competitors against its 8-bit microprocessors, Intel rolled out an upgraded version, the 8085 – a faster chip with greater functions – and kept developing more advanced alternatives, such as the 32-bit 432 and the 16-bit 8086 (introduced into the market in 1978).

Business Strategy 5: You Can Find a Better Way Of Solving Poor Financial Situations Than Firing

Laying off staff during difficult times may seem the only solution left to use. However, this does not leave those left behind in good spirit to put in their very best for your business. In fact, many of them will be unsure if they wouldn’t be the next to take the boot, and so will have an eye outside for another job.

Therefore, instead of cutting down your staff strength, the better strategy to handle the situation is to find a more humane and innovative way of getting round the problem.

After Intel was forced to sack 30 percent of its workers during the recession of 1974, the morale of the remaining work force dropped heavily resulting in low productivity and performance of the business. This experience taught Intel a better approach.

So in 1981 when another economic difficulties came up, instead of sending people home Intel increased pace on new product development with the ‘125 Percent Solution,’ which required exempt employees to work two extra hours per day without pay for six months.

Again, in the following year as the financial problem the company was facing continued, Intel imposed pay cut of up to 10 percent instead of laying off workers. However, all pay cuts were restored and retroactive raises made in 1983 when the business began doing well again.

Business Strategy 6: Be a Leader in At Least One Product Category

There is enormous reward for your business to be a market leader in one or more product categories. This is extremely important if you desire enduring success in your industry.

With the huge sales you make from the leading product, you can gradually build other products to top positions in the market. In addition, your leading product will help sustain others in their time of dwindling returns.

In spite of the depression Intel faced in the middle 1980s, its microprocessor business, the market leader in its category, remained highly profitable, and it helped to bring back the company to life in all areas.



Put your business on the path to success with a solid plan created with Business Plan Pro Software .

Experts in business and technology, as well as daily users rate this software higher and above others. Click here to see why.

Leave a Reply