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Segmentation strategy can be a significant competitive differentiator for a company. Intel, a pioneer in business segmentation (their “Intel Inside” value proposition is legendary), taps the power of segmentation to target technology markets selling both B2B2B (business-to-business-to-business) and B2B2C (business-to-business-to-consumer). Computer chip manufacturers such as Intel and AMD market to Apple, Dell, Hewlett-Packard and Lenovo for B2B2C and market to companies such as Amazon and HP Enterprises for B2B2B cloud computing.
Intel segments its business units based on analyses of its customers’ markets to determine where it should emphasize its sales and product development efforts. In a 2015 report to analysts, Intel revealed that they are reducing investment spending in software, personal computers and phones and tablets while investing more in data centers with cloud computing, retail solutions, transportation and automotive, smart homes and buildings and industrial and energy. Analysis of these segments will then focus on target companies well positioned in the emerging growth areas they identified.
To Discuss: (Answer 2 of the 3 questions below and reply to 2 or more comments by classmates)
1. How does Intel compete in the Now Economy?
2. Critique Intel’s segmentation with respect to existing, emerging and imagined market opportunities.
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