Contents

Introduction ................................................................................................................................ 2

E business development strategies at Intel................................................................................. 2 E business strategies ............................................................................................................ 2

E-Business deployment .......................................................................................................... 3

Deployment problems and challenges.................................................................................... 3

Success ................................................................................................................................... 3

Improvements ......................................................................................................................... 3

Conclusion ................................................................................................................................. 4

Introduction
Expansion in e-commerce values have convinced many individuals that a new economy has emerged. The use of e business is a complement in creating value to customers and differentiating from competitors. As argued by Potter key question is not whether to deploy e business now to take advantage of Internet Technology, but how to deploy. This paper would discuss the development of e- business at Intel to achieve a competitive advantage.

E - business development strategies at Intel

Intel supplier of various e-business components incorporated in 1968, as the supplier to the computing and communication industries with integral to computers and other communication products. Intel carried out its promotion activities through paper catalogs until 1998 when they were pressured to convert activities to e-business by their key value chain partner Dell. Benefits of e business system cannot be ignored as more than 50% of Intels revenue comes from outside the US. Therefore Intel created its e business program focusing on procurement and customer support for their products.

E Business strategies
Intels early mission was to use internet technology to improve the competitive advantage of its value chain activities. Intels goals were to design and deploy a worldwide e business solution for its current business, and build an infrastructure that worked with existing business processes. Intent of Intel was to achieve a competitive advantage through integrating e business technology. Competitive advantage was aimed to be achieved through;
Operational efficiency

Operational efficiency is the capability of an enterprise to deliver solutions to its customers in the most cost effective manner possible while still ensuring the high quality of its products services and support. (source: http://www.webopedia.com/TERM/O/operational_efficiency.html).
To achieve operational efficiency Intel Automated its order management and information delivery system encouraging its value chain partners to connect to the WWW to access information. Replaced phone and fax lines to PC based real-time information to customers which enhanced to close business relationships.

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Strategic positioning R&D programs, strong supply chain relationships customer-centric models for system and data enabled Intel to secure a distinctive position in the market.

E-Business deployment
Intel deployed its e-business strategy by automating the creation of accounts, with the developed of a customized web site to serve all information needs of its value chain partners and over 350 customers, this not only saved time spent on account creation but also built business relationships.

Deployment problems and challenges

Intel sites allowed customers to place and track orders using SSL encryption, but during the deployment of the pilot system Intel identified a few challenges: There was a 15% increase in packet loss during the e-business process. Transmission problems in the customers site were located in the connection between customers workstations to end-offices and tandem offices of the telephone companies. As a solution to these issues Intel reduced the number of elements that had to be transferred through the network and improved connection quality and bandwidth between customers sites and the tandem office (tandem office- a telephone switching center that doesnt connect directly to the customer).

Success
Intel effectively deployed e-business system in its primary and secondary activities in the value chain model and achieved increased profits, cost savings, increase in its customer satisfaction and Intel was also able to remain profitable even in the economy downturn situations. Intel was able to achieve these successes because of the strategic positioning in the market, e-business system was built in order to complement the existing system rather than to cannibalize the traditional system, strategy deployment received immense support from the top management and etc.

Improvements
Due to the shorten development life cycles of software products the developers do not carry out a thorough investigation process this has caused the decline in the reliability of the Windows server therefore much attention need to be paid towards the reliability of the Intels PC servers. Due to the simple architecture PC workstations and PC-based networks are vulnerable to security break-in. building trust in the B2B market is important therefore Intel needs to make extra measures in maintaining reliability and security of its e-business servers.

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Conclusion
Organizations are in a blood field trying to gain a competitive advantage over its competitors. For this companies need to improve on key success factors that would bring a unique advantage while building on its strategic positioning. E-business technology can be used as a tool in capitalizing on the key success factors the company has identified. It could be argued that e-business strategies are successful due to the advance in e-commerce; this is evident through Intels financial success during the economy downturn and strategic positioning in the global market. The strategies, success factors and lessens learn of Intel could be used to effectively implement e-business in organizations.

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