The Exit of Their CEO Puts Intel in a Fight for Its Future

Intel is at the crossroads of a major turning in the company’s 50-year-old history. The CEO, Brian Krzanich had resigned from his post yesterday, following an investigation, which is in progress, into his consensual relationship with a subordinate in the organization, that had taken place sometime back. This consensual relationship had gone on to violate the non-fraternization policy of Intel. Krzanich, who had first joined Intel more than almost 35 years ago, his career at Intel has come to an abrupt end.
Five years ago, Krzanich was appointed as the CEO of Intel and had to carry out a tough task of chalking out a mobile strategy for the company and gradually move them forward to explore new markets. Intel, which has been basically known for PCs and servers, their business has got disrupted due to the emergence of smartphones and cloud computing and the company got caught at the wrong foot by the unprecedented rise of Artificial Intelligence and autonomous vehicles.
Nowadays there has been a decline as far as the relevance of Intel is concerned. Previously people used to care about exactly what Pentium Processor was being used inside a laptop, having a sticker of Intel put on it. Now, people even do not come across any jingle or the traditional ‘Intel Inside’ during the advertisements. During his stint of five years as CEO of the company, Krzanich had tried to fight out the declining trend and put the organization in line for the future.
85% of Intel’s revenue gets generated from their server and PCs. They have tried to reposition themselves through other products like smart watches, smart glasses but the results have not been promising. With the focus getting shifted, the core business was put under pressure.
Intel should look to hire a CEO who can make the company sufficiently competitive in its race for Artificial Intelligence and also ensure that the traditional business line doesn’t get hit, which could allow competitors to eat into their profitable segment. The biggest challenge for Krzanich successor would be the future growth of Intel.