EE204: Business Management for
Electrical Engineers and Computer Scientists

Intel and WiMax in 2010

Read

  1. Read: Intel and WiMax in 2010

Assignment of Individual Written Case Analysis

This second written case analysis is an individual assignment.

Collaboration policy on second paper:

Please refer to the Guidelines and Grading for Written Case Analyses page of the web site. Prepared following the guidelines given in that document. You should attempt to present important background case information, and use the tools discussed in class and in the readings as a basis for your analysis. Make sure that your paper addresses the written assignment. The study questions should be addressed as part of the written assignment. The case will be due at 8AM, before the beginning of class on the due date. Papers submitted after this date and time will not be accepted (including but not limited to later in the same day).

Case Summary

In the spring of 2010, Intel was regarded as an important champion for a new broadband technology called WiMAX (Worldwide Interoperability for Microwave Access). WiMAX transmitted large amounts of data over radio signals, and offered much greater range than Wi-Fi. It also offered much faster connection speeds than 3G networks run by AT&T, Verizon and Sprint. WiMAX was a new space for Intel, and the company hoped it would yield the same type of profitability and success for Intel that Wi-Fi had. Between October 2008 and May 2010, Intel had joined forces with Clearwire, Sprint, Motorola and other partners to launch WiMAX in about 30 U.S. cities. Intel's vision for the deployment of WiMAX evolved from fixed wireless (for broadband connectivity to homes and businesses) to portable wireless (laptops) to mobile wireless (handheld devices and high-end smart phones), as the company spent billions of dollars on acquisitions and investments in the WiMAX arena. But Intel faced many challenges with WiMAX. A large infrastructure would have to be built from the ground up in the U.S. and around the world, and WiMAX needed a least a few major cellular operators to choose it as their next-generation (4G) technology. Intel would have to create a new 4G ecosystem to convince equipment manufactures to embed WiMAX technology in its devices. In addition, WiMAX faced stiff competition from other new wireless technologies, including LTE (Long Term Evolution), which AT&T and Verizon planned to use when they upgraded from 3G to 4G technology. Although WiMAX had a two- to three-year lead over LTE, the size of the mobile operators already committed to LTE threatened to make WiMAX a niche technology.

Written Assignment

You have been hired as a consultant by Intel CEO, Paul Otellini, to analyze the WiMax new product program. He wants your candid written assessment of the strategy, execution and go to market plans currently in place. In addition he wants you to make recommendations that he can review with the Intel board. that will increase WiMax market share and improve Intel's strategic position within the wireless industry. Support your recommendation with an analysis of case facts and answers to the questions below.

NOTE: Only the facts presented in the case should be used in your recommendation. This assures consistency of information and consistency in grading.

Study Questions

  1. The CEO has asked that as part of your report, you provide him with the situation analysis, risks and opportunities, market assessment, competition, market size, timing and team. He also wants fundamental analysis of the financial model, and its potential to add to Intel's growth and profitability goals
  2. How strategic is Wimax to Intel's future? Can they afford to lose?
  3. The CEO has also asked you to add a exhibit with five slides so that he can present your findings at the next board meeting. Note: these slides should be as simple as possible, all exhibits in total count for 4/20 in the grading criteria