What does Intel's presentation of their financial information tell you Essay - 1

What does Intel's presentation of their financial information tell you about how they use financial information in decision making - Essay Example The information technology industry in 2006 generated approximately $3 trillion, a figure that is expected to increase to $4 trillion by 2009 (Plunkett Research, 2008). Such a profitable market attracts many new firms into a very competitive industry with thousands of companies competing for market share. Countries such as India have created economic models for growth based on the exporting of information technology into markets such as the US, Europe and Canada. It is very in this industry for a company to generate revenues based on a projects which represents revenue generating contracts of IT services. The Ansoff matrix is a strategic marketing tool which could very useful for IT managers. The first payoff of the matrix position (1,1) is know as a market penetration strategy. The market penetration strategy is a strategic move to seek greater market share of an existing product a firm offers. In the 1990’s the IT firm which was the most successful at achieving market penetr ation in its main product offering was Microsoft Corporation which was able to achieve a market penetration of above 90% for a prolonged period of time. The market penetration strategy can be exploited by the IT manager in companies whose product offering is above the competition offering, the company has many competitive advantages over the rest of the players in the industry including good economic resources to pay for the high advertising expenses and other marketing initiatives required to successfully implement a market penetration strategy. The second position of the Ansoff Matrix (1,2) is called product development. This strategy is based on an IT manager developing a product in an existing market. Such a strategy can be extremely profitable. Microsoft Corporation is currently in the last stages of product development for a new product called IPTV which is broadcasting channels similar to those