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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: StockMan who wrote (59098)	6/30/1998 4:04:00 PM
From: Jeff Fox	Read Replies (3) \| Respond to of 186894

Stockman, re: Network strategy Intel would need to "broaden" its strategy. In addition to enabling the information infrastructure, it also needs to participate in growth areas within this infrastructure. I agree - Intel could accelerate wide area networking by making a ton of money with the delivery of advanced service. But unlike those interactive cable trials, it has to offer real value to the customer. My guess is Intel is attempting (very slowly but surely) to capture the SOHO/home area of networking (components that belong in the PC -- modems (software, cable and DSL) and NIC's. Perhaps, but I'm not so sure that they are truly committed here. Sure the network division is rabid on this, but I suspect Intel Exec. staff will only push to get the growth going - sort of the same strategy as with motherboards. One other area that Intel is "attempting" to expand in is automated services. Say what? - Could you explain more about what your thinking here. Intel also has had very little luck in anything other than CPU's and related components. Actually they have done extremely well. It is just that the results pale compared to 60% margin CPU business. You know it is incredibly tough to earn high margin business. Intel has worked twenty five years to get there in CPUs. It isn't going to happen overnight in other markets. You should (and Intel should) evaluate market performance against its competitors and competitive returns - not just the CPU recent history. Thus they seem to be less than 100% committed to these areas. Stocky, you've hit the nail on the head. This is the main bugaboo for a successful company. The main cause of downfall. They compare everything to their cash cow and fail to seize the new opportunities with full commitment. There is a way around this - the separate subsidiary. One needs to isolate new ventures from internal detractors. This business form will can this. So - I'm looking for more Intel partnering. I would like Intel to get a relation with a leading network service provider similar to its relation with Dell or Gateway; something where Intel engineers 100% participate in crafting the services, but the other company crafts the business model. What do you think? Jeff