Intel is one of the most profitable corporations in history. Itel is facing an intense competition from its rival AMD and this is causing decline in market share and squeeze in profit margins.
Part of this is because of the recent tech sector crash that has affected all high-tech companies. But some blame their CEO' new strategy of expanding Intel's business into many different lines.
2006-10-21 03:53:15 · 2 answers · asked by Anonymous in Business & Finance ➔ Corporations
Diversification always hurt. Getting involved in market segments that are not part of your core business is the best way to open doors for competitors.
But if you are in a slowing industry, it can be a good deal to diversify in related industries. But this should be done through acquisitions or setting up of separated subsidiaries instead of putting all the eggs in the same basket.
Patrick
http://www.sinotrip.biz
2006-10-21 04:00:15 · answer #1 · answered by sinovantage 2 · 0⤊ 0⤋
Not a good idea. Also, it depends on which country you are in. Reason, differentiation of labor or specialization. If you are good at something you need not be good at something else. It is not at all good for the consumers and for the vendors they will find it a long road in the new direction.
Innovation is the right direction and acquisitions.
2006-10-21 09:06:04 · answer #2 · answered by Mathew C 5 · 0⤊ 0⤋