JANUARY 2021 / NO. 2
TAGS: GE, PHILIPS, SONY, PANASONIC, KODAK, BLACKBERRY, MOTOROLA, NOKIA, INTEL, ANDREW GROVE, APPLE, GOOGLE, MICROSOFT, TESLA, TSMC, SAMSUNG, AMD-XILINX, NVIDIA-ARM, ALTERA, MOBILEYE, HABANA LABS, BOB SWAN

Is your company losing market dominance?

“Is market leadership going to last? No, it’s not. Just think of GE, Philips, Sony, Panasonic, Kodak, Blackberry, Motorola, Nokia and so many more. WHAT happened?”
“The key reason of losing market leadership is due to the not timely adaptation to changing market circumstances, to unforeseen disruptions and to new hidden competitors. Look at Intel”
We all know the Intel Company which became famous because of “Intel inside”. Another key event we remember of Intel was the publication in 1996 of the bestseller “Only the Paranoid survive” of former legendary CEO and founder Andrew Grove. For decades Intel has dictated and dominated the world of semiconductors, microprocessors and chips. Andrew Grove stated in the late 1990s : “Strategic Intelligence is a pre-condition for existence“. In the 1990s/2000s Intel has been leading in strategic intelligence. State-of-Art. However, what happened to Intel?

Intel lost market dominance?

Intel faces fierce competition at three levels. First, Intel is facing new competition from big tech such as Apple, Google, and Microsoft who all start to develop their own chips as well as Tesla Automotive does. Second, Intel faces new competitive threats in the market sectors of smaller chips, called nodes, with less than 10 nanometer (nm). Taiwan Semiconductor Manufacturing (TSMC) has already chips with 5nm, Samsung currently works on 5nm and TSMC plans to introduce 3nm in 2022. Third, new players acquire new niche players such as AMD-Xilinx for US$ 35 billion and Nvidia-Arm UK for US$ 40 billion. Intel itself acquired Altera in 2015 at US$ 17 billion and two start-ups in Israel, Mobileye in 2017 at US$ 15 billion and Habana Labs in 2019 at US$ 2 billion.
In January 2021 Intel’s CEO Bob Swan was forced to step down because of under performance. If you are a successful multinational or a SME, not any company can afford it to underestimate their current and potential new rivals in the competitive arena. Nobody in business society should ever forget that every competitor in what-so-ever sector of industry is after your customers. With strategic intelligence companies can prevent they will face similar situations such as described with Intel. The primary purpose of strategic intelligence is to reduce uncertainty, to identify risks and opportunities, to deepen the understanding of the changing external market dynamics, and act.

Today’s or Tomorrow’s job

We have employees capable of doing the job today. How can we ensure they are able to do something different tomorrow? We can ‘redeploy’ them. We can ‘reskill’ them, which is the ‘old school’. On-the-job training and the traditional learning programs are the bulk of training across companies. ‘Upskilling’ is tomorrow’s challenge, meaning to get employees more advanced and more gifted. However, ‘upskilling’ is also the most difficult thing to do. Since 2002 our international Master Class Strategic Intelligence is such a program that upskills employees and is applicable in every company function.
“What is surprising is that we were surprised. We must be far better prepared for the impacts of significant disruptions than ever before”. How do you prepare yourself?
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