Intel Corp (INTC)

[SemiconEng]

Issues When Moving Beyond Your Core Business


http://www.forbes.com/ceonetwork/2004/05/04/0504bookreview.html?partner=yahoo&referrer=
Book Review
Moving Beyond The Core
Kern Lewis, 05.04.04, 10:27 AM ET

Some firms face bigger challenges than others in moving beyond the core. Zook and other authors say that Intel (nasdaq: INTC - news - people ) actually has trouble growing through adjacency moves, not because of poor management but because of the overwhelming managerial demands of its core business. Even when Intel made progress with adjacency moves, they ended up fueling increased demand for the core microprocessor product, again drawing managerial attention back to the core business. As Zook notes, Intel discovered that it was more valuable to "give away technology and quickly disseminate it in the market, rather than try to build a business around it." Most companies don't have such a resource black hole at the center of their businesses, but Zook notes that not enough companies properly assess the effect adjacency moves will have on the core business.