Strategic Capabilities

Strategic Capabilities 5.1Threshold Resources and Competences Intel is the largest semiconducting material chip manufacturer on the commercialise in terms of revenue. Their global presence in multiple markets helped them to offset fluctuations in demand during the economic crisis. Revenues declined in Europe and America since 2007 whereas they surged in Asia (Intel, 2010a). Although mergers and acquisitions bear the risks of missing the light expectations (Lubatkin (1983) in Brouthers et al (1998)) and losing capital Intel considers investment as a key success factor for their business. This strategy was in peculiar(prenominal) followed in times of the financial crisis, as Otellini states in Rogers (2010). consequently the company has a long experience in acquisitions and consolidation of promising companies. Alacra Store (2010) shows that the company has undertaken 41 acquisitions and bought more than 41 stakes in companies since 2000. 5.2Core Competences and unique Resources Intel has the unique preference of technologically highly developed manufacturing plants, the so called Fabs (Mims, 2010). Only those throw overboard Intel to produce individual high performance chips.

Other semiconductor manufacturers cannot afford those cost intensive facilities and need to outsource their payoff which leads to standardisation and simultaneously performance reduction (Mims, 2010). The know-how in R&D in conjunction with the unique facilities allows Intel to keep up with Moores law and to develop annually smaller chips (Mims, 2010). whence they remain the first to establish new products in the market and can gain the strategic lock-in owing to the first-mover advantage as well as patents (Wilde, D.L., Hax, A.C., Main strengths and weaknesses8 1998). However, Mims (2010) states that R&D cost are increasing when processors rule smaller. Intel lives a meritocratic culture. capital punishment of employees is measured against the rest of the staff (Rogoway, 2007). This increases competition and makes them... If you want to get a full essay, order it on our website: Orderessay

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