Corporate Transformation Case Study

Paul Otellini's 'Right Hand Turn' Strategy: Leading Intel in a New Direction?

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Abstract:
By the turn of the 21st century, Intel's challenges included the Internet bubble burst, rival AMD outperforming Intel and various product delays and cancellations. Amidst these challenges, Paul Otellini in November 2004 was appointed as fifth Chief Executive Officer (CEO) of Intel. Otellini shifted Intel's focus from speed of microprocessors to its performance using dual core processors indicating a ‘right hand turn’ for Intel. With the introduction of dual core chips and Paul Otellini as the new CEO, in May 2005, Intel attempts to take on rival AMD and steer itself as a ‘growth company’.

Pedagogical Objectives:

• To understand Intel's challenges in the 21st century
• To discuss Intel's new strategy for growth in 2005, under the leadership of Paul Otellini, against the backdrop of the competitive semiconductor industry

Keywords :  Intel's product launch strategy; Corporate Strategies Case Study; Paul Otellini at Intel; Intel-AMD price war; Global semiconductor industry; Heat generated by Intel's processors; AMD's technological advantages over Intel; Intel's dual core processors; Otellini's 'two-in-a-box' management strategy; Paul Otellini's 'right hand turn' strategy; Reorganisation at Intel; Dell's Intel only strategy; Leadership style; Moore's Law