Intel - Case Study Chipping A \,~1y tlt Intcl l \' Craig R....

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Case Study Chipping A \\,~1y tlt Intcl l \\' Craig R. Barrett sat reflecting on the fact that he was halfway through his tenure as the fourth CEO of Intel-only another three more years to go until his mandatory retirement age would be reached. He had come into an organization that Andrew S. Grove, chairman of Intel, had shaped into a major global technology company. He had replaced Gordon E. More but retained his principle of doubling microprocessor performance every 18 months while at the same time making it progressively cheaper. In this context, what would be Barrett's legacy? When Barrett came in three years ago, he took some bold moves, taking Intel beyond chip making for PCs into the pro- duction of information and communica- tion appliances as well as services related to the Internet. Trouble is, the company was now in the worst shape that it had been for many years. Of course, every technology company had been affected by September 11,2001, the slowing econ- omy, and the potential threat of war with Iraq. But in Intel's case this had been compounded with problems such as product delays and shortages, recalls, overpricing, and even bugs in its systems. Analysts were predicting that by the end of the year, Intel's share of the PC chip market would be 9 percent worse than when Barrett had taken over three years earlier. He had ploughed money into new mar~ets-kut then had to withdraw from the!e. For example, Intel withdrew from the production of netwo,rk servers al')d routers after copping flak from Bell arid Cisco, its biggest customers for its chips,
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Intel - Case Study Chipping A \,~1y tlt Intcl l \' Craig R....

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