This paper is dedicated to the memory of Linda Anderson, research writer and well of wisdom. Organizing at Intel
Introduction Intel's fortunes grew rapidly through most of the 1990s, but growth slowed dramatically when the PC industry went flat after the turn of the new century. A rash of PC sales in advance of the Y2K scare essentially was the last hurrah for the high-growth days of the PC industry and its suppliers, the leading one of which was Intel. Intel has continued to grow in the past several years as the PC industry has struggled, but growth has slowed and Intel's senior management can see how the trend would continue – and worsen – in coming years. The company has changed its approach now, waiting to release its new products until the market has shown itself to be ready for that new product. By becoming market-driven, Intel enhances its relevance to customers. Its organizing management function has directly changed in relation to its monetary and technological resources. Changes in Intel's Approach A Wall Street analyst looks at all the good news coming from Intel and essentially says, "So what?" The analyst is basing his assessment on the fact that Intel stock had lost 21 percent of its value in the first nine months of 2006 (Schaeffer's Market Observation, 2006). This is in keeping with the industry of much of Intel's traditional focus, but the trend is costly in terms of market capitalization, the least costly means of acquiring capital. Including areas of microprocessor-requiring devices that are not PCs likely will have the effect of enhancing shareholder value. Market Share and Partnering It also should assist Intel in regaining some of its lost market share from Advanced Micro Devices (AMD), which until 2006 never had out-earned Intel. Intel's response has been to lower prices on its PC chips (Edwards, 2006); additional revenue from other sources will serve to offset the