Premium Essay

Intel Strategy Analysis

In:

Submitted By sswagh1986
Words 6419
Pages 26
Intel Corporation
Strategic Analysis

Group-11
Maithilee Deshmukh-123
Siddhesh Hegde-51
Swapnil Wagh-53
Swati Agrawal-54
(PGDM-B)

Group-11

CONTENTS
1. History & Introduction
2. Industry Analysis 2.1 Porter’s Five Forces Framework 2.2 Complementors & Strategic Groups 2.3 Life Cycle Analysis 2.4 SWOT Analysis 2.5 PESTEL Analysis
3. Internal Analysis 3.1 Resource Based View Analysis 3.2 VRIO Framework
4. Business Strategy
5. Tetra-Threat Framework
6. Conclusion

Porter’s Five Forces Analysis
Threat of New Entrants (Low) 1) High Industry Profitability (+) 2) Large fixed costs (-) 3) Economies of scale in research, chip fabrication, consumer marketing etc. (-)
The microprocessor market is characterized by short product life cycles, rapid advances in product design, competitive pricing and process technology. This means if firms want to be competitive in the industry they have to invest large amounts of fixed cost to create specialized facilities for production as well as continuously devote large amounts of funds to research and development in order to keep producing top-of-the-line products. Supply side economies of scale give large microprocessor firms advantages in R&D. Since the cost of creating one extra microprocessor is relatively insignificant the larger production size allows R&D costs to be distributed over a larger number of chips. 4) Learning economies & requirement of advanced technologies (-)
Learning economies also provide barriers due to the exclusive manufacturing facilities and highly specialized work forces. Prominent chip manufacturers have been refining their techniques for some decades now and new entrants must start from zero due to no initial learning. 5) High switching costs for customers (-) 6) Patents limit new competition

Similar Documents

Premium Essay

GáI Xinh DạY ChịCh Beautiful Girl Sings

...Qualification | Unit Code / Unit number and title | Pearson BTEC Level 5 HND Diploma in Business | Y/505/8182 Unit 7: Business Strategy | Student name / BTEC Registration Number | Assessor name | Nguyen Le Hien | F07-017 | | Learning Outcome | Learning outcome | Assessment Criteria | In this assessment you will have the opportunity to present evidence that shows you are able to: | Task no. | Evidence(Page no) | LO1 | Understand theprocess of strategicplanning | 1.1 | Assess how business missions, visions, objectives, goals and core competencies inform strategic planning | 1 | | | | 1.2 | Analyse the factors that have to be considered when formulating strategic plans | 1 | | | | 1.3 | Evaluate the effectiveness of techniques used when developing strategic business plans | 1 | | LO2 | Be able to formulate anew strategy | 2.1 | Analyse the strategic positioning of a given organisation by carrying out an organisationalaudit | 2 | | | | 2.2 | Carry out an environmental audit for a given organisation | 2 | | | | 2.3 | Assess the significance of stakeholder analysis when formulating new strategy | 2 | | | | 2.4 | Present a new strategy for a given organisation | 2 | | Date issued | Hand in deadline | Submitted on | | | | | | Assignment title | BS1: Strategic Planning and Formulation of New Strategy (1 of 2) | In this assessment you will have opportunities to provide evidence against the following criteria. Indicate the page...

Words: 3521 - Pages: 15

Premium Essay

Intel

...Current and Future Challenges to Intel: 6 Analysis of Intel Corporation: 7 Corporate strategies: 8 Conclusion and Recommendations: 8 INRODUCTIONS AND HISTORY: Intel is one of the world’s largest and very best introducers of semi conductor chip Makers Company. It’s an American based multinational chip makers corporation which is located Santa Clara, California and founded on founded mountain view on July 18, 1968 by Gordon E. Moore , Robert Noyce, Arthur Rock and Max Palevsky. Rock was the Chairman of the Board. After Rock Andry Grove ran the company till 1980 till 1990. The word Intel is basically used in terms of intelligent. Intel manufactured many products as motherboards ,chipsets, network interface controllers and integrated circuits, flash memory ,graphics chips ,embedded processors and other devices which are used in communications and computing systems on large scale. In ages of 1990 Intel was only be known primarily to engineers and technologists i.e. Intel inside which made it a household name, along with its Pentium processor. The main ability of Intel is to combine advance chip design capability with as leading-edge manufacturing capability. As compared to other companies like Google in today’s world Intel is not using common system. As Google is transferring data from long distance by using fiber optics but when machines move individually then its takes time to update information over old fashioned copper wire. Recently Intel has started to produce commercial...

Words: 2338 - Pages: 10

Premium Essay

Hr Management

...SUMMARY 2 2. LITERATURE REVIEW 3 3. QUESTIONS IN THE CASE 7 1. Analyse Intel Corporation in terms of its shift in strategy. 7 2. Discuss on how you are going to align your HR functions (resourcing, learning & development and talent management) to support the company. 10 4. SUMMARY 13 5. REFERENCES 14 1. EXECUTIVE SUMMARY This case study is all about the strategies used by Intel Corporation. It is the fifth most valuable brand in the world. Due to the new strategies Intel was able to leave the competitors behind. Intel’s new strategy is the production of microprocessors. However the market segment is continuously changing. Due to the change, sales of desktops are falling while sales of laptops, mobiles and other handheld devices are increasing. Part of the new strategy of Intel is new logo, redesigned to show that Intel is moving forward. Intel uses the customer groups to test its predictions. Intel was implementing a series of new products for instance a home entertainment platform with film, TV, music and games. Intel’s another strategy has a strong focus on marketing finding out what customers want and providing it. Intel leads the markets because of its strategies. To implement the strategies it should create proper HR functions such as recruitment of talented employees, learning and development and talent management. In this case study, the strategies implemented by Intel to lead in the market are clearly mentioned. At the same time market segment...

Words: 2233 - Pages: 9

Premium Essay

Cock Cola

...Intel plays a critical role in personal computer’s microprocessors and is a well-known brand in the world. According to SWOT analysis, it can provide some information about Intel’s strengths, weaknesses,opportunities and threats. Intel has dominated microprocessors market for several years. The major strength is that the firm has a high market share. By contrast, Intel’s chief competitors such as Samsung and AMD merely occupied 24% market share. Furthermore, Intel’s branding market campaign will also benefit from its market share. To be more specific, the corporation utilized “Intel Inside” campaign to improve its brand image. When consumers purchased Intel’s partners’ personal computer, they can easily know Intel’s trademark. This advertising strategy is backed by its market share. The firm’s pricing positioning is different its major competitor especially AMD’s pricing strategy. Some reports illustrate that Intel lacks of competitive advantage in low price productions’ market. The reason is the firms pay less attention to low chip market and has no future plan to expand this market. This weakness will bring about opportunity for its competitor especially AMD. The potential opportunity for Intel is that the growing development of mobile Internet devices and cloud computing. Smart phones market has advanced dramatically in recent years. Intel activated a new platform namely Centrino Duo mobile to support its new marketing strategy. These opportunities can help Intel to...

Words: 398 - Pages: 2

Premium Essay

Intel Case Study - Hbr

...The key marketing challenge Intel is facing today is generating awareness about the mosaic of technological possibilities using the microcontroller based computers. To tackle this issue without having to enter unexplored markets and face the risk of diluting the brand is another major challenge. Intel, with a share of nearly 80% of the Microprocessor market, could be termed the “ingredient” monopoly of the PC market but with products like Cell phones and PDAs on the rise and with market share as low as 1% in cell phone chipset, trying to come up with an effective distribution and advertising strategy to help maintain their market position is the need of the hour The first solution to overcome this challenge is to integrate the microprocessors with a variety of technologies using the impeccable R&D facilities available to ensure a larger pool of customers is catered to. Apart from allocation of significant amount of revenue towards R&D to come up with innovative products for customers, Intel needs to focus on building relations with pioneers in the fields of consumer electronics, telecommunication, space science and industrial engineering. By working with them Intel could gain a wider market presence and a diverse portfolio. Also, an effective advertising strategy which focuses on educating the customers about the power of technology through videos, blogs and interactive websites needs to be implemented. This would help highlight the emphasis laid on technology and also...

Words: 1205 - Pages: 5

Premium Essay

Intel's Marketing Strategy

...Name: Alexander Tsakirides Assessment: Marketing Strategy Analysis Topic: Intel Corporation Introduction Intel Corp. is an American multinational company that specializes in the development of chipsets and processors such as motherboard chipsets, NIC (Network Interface Controllers), integrated circuits, flash memories, graphic chips, embedded processors and generally computer and communication based devices. However, they are mostly known for their Intel Processors. The company was founded on July 1968 and its headquarters are located in California, Santa Clara. It is one of the biggest companies worldwide as on 2013 they were placed on #61 position of the top 100 companies with the highest value in the market as published by Millward Brown Optimor. During the 2000-2010 decade, however, another brand entered the market causing Intel to lose part of its market share, that brand was/is AMD (a tier 1 competitor to the chip and processor market industry). Later on, Intel begun research in electrical transmission and generation that would increase energy efficiency and they released the 3-d transistor on April 29, 2012. One of the most important aspects of Intel’s expansion and strategic movement is the acquisition of several brands, from 2009 up to January 2015 Intel acquired 14 brands associated with Software, Mobile CPUs, Location Services, Communication Processors and New Devices. Since Intel emphasizes and heavily promotes diversity all these brands were, as expected, located...

Words: 2958 - Pages: 12

Premium Essay

None

...Intel Final Paper MGMT 480- Frankforter Executive Summary As the world’s “foremost semiconductor maker,” Intel Corporation has a reputation to uphold and a future to build. Founded in 1968, Intel has grown to a company of over 90,000 employees who operate Intel’s facilities in nearly fifty countries. Intel produces processors, motherboards, chipsets, network adapters, flash memory, software, storage devices, and wireless products. Many of us are the end-users of a wide variety of Intel’s products, but the Intel’s numerous other customers are primarily OEM manufacturers who utilize Intel’s components, end-user consumers (which includes individuals, large and small businesses, and service providers), and “other manufacturers, including makers of a wide range of industrial and communications equipment.” Intel has capitalized on its ability to lead the semiconductor industry by continuous innovation. Gordon Moore, one of Intel’s founders, introduced a principle that continues to guide Intel which states that “the number of transistors on a chip roughly doubles every two years.” In keeping with Moore’s Law, Intel’s key to success in the semiconductor industry has been constant innovation. Such a strategy has allowed Intel to remain a leader among competitors such as Texas Instruments, Advanced Micro Devices, International Business Machines, and Freescale Semiconductor, among others. The semiconductor industry is extremely competitive, but...

Words: 11699 - Pages: 47

Premium Essay

Intel Research: Exploring the Future

...Intel Research: Exploring the Future This report discusses the case study ‘Intel Research: Exploring the Future [1], published in 2005 by the Harvard Business School. The discussion is divided into three different sections: overview, analysis and conclusion. 1-Overview In 2013, Intel spent more than 10.6 billion in Research and Development (R&D), and became the third biggest spender in R&D. Intel invests in R&D to get on with Moore’s Law, an observation by company co-founder Gordon Moore in 1965 that computing power doubles every two years. As the company works to cram more transistors onto its circuits, development eats most of the company’s R&D spending. “It’s getting more expensive to do the development piece of it because wafers get more expensive over time as more steps get added to the process,” says Michael Mayberry, vice president and director of components research at Intel. “Complexity drives cost.” One recent example of the company’s R&D efforts includes the 14nm Intel Core M processor, which is half the size of the previous generation of chips with 20% longer battery life and 60% less energy expenditure [2]. In late 1999, Intel Research was formed to perform a new model of conducting information technology (IT) research. At that time Intel already had a process for research in new product development (Figure 1). In this research approach, the approximate feature capabilities of a new product can be predict by Moore’s Law. Then the technical...

Words: 1122 - Pages: 5

Free Essay

Mba Case Satellite

...Case Analysis Intel Corporation: 1968-2008 Case 6 Name: Po-Hsun Lo ID: 11018704 Date: 01/22/2012 Abstract Intel, the leading manufacturer of microprocessor since 1985, possessed 77.46% worldwide share of microprocessors for personal computers in 2007. Revenue of Intel kept increasing even during the recession of 2007, and Cost of goods sold reduced from 2005 to 2007. Such overwhelming performance pushed its major competitor, AMD that was expected to lose $1 billion on sales in 2007, to the edge. Although Intel had ruled the microprocessors for PCs, the growth of PCs market started showing slump, which meant exploring new market is getting importance to Intel. Corporation Overview Founded by Robert Noyce and Gordon Moore in 1968, Intel started business by manufacturing dynamic random access memories (DRAMs) based on the technique from Fairchild. Besides the two founders, big part of early success of Intel was attributed by Andy Grove, one of researchers hired as Intel founded. Andy was charged as director of operations, so he had designed the first manufactory of Intel producing in competitive cost. His attributions and performance resulted in that he was named CEO in 1987 and positioned CEO until 1998. His management philosophy was detail oriented; everything must be constantly checked, especially about driving down cost and speeding up development processes. Therefore, Intel is always leading on product innovation in microprocessors industry. Intel strongly grew...

Words: 1625 - Pages: 7

Free Essay

Chipping Away at Intel

...Case Study: Chipping Away at Intel Ivy Cuttino Strayer University Dr. Bobby Barrett HRM 560- Managing Organizational Change April 20, 2012 Intel was in the bad shape in the Barrett’s tenure and he had to implement changes to cope with internal and external pressures. The specific pressures that required Intel to change were Intel’s bad products with delays and shortages, overpricing, bugs in its system, shares going down, slowing global chip demand, slowing economy under impact of September 11, 2011 and its rivals becoming stronger. It was a really hard time for Intel and a big challenge for Barrett in order to remain the company’s reputation. Discuss the different changes at Intel over the first 3 years of CEO Barrett’s tenure. When Barrett came in Intel three years ago, he took some bold moves. He expanded into the production of information and communication appliances as well as services related to the internet. He also reorganized internal system to avoid duplications and improve coordination within the organization. The example of duplication was that the network operations group and the communications unit sometimes were in competition with each other, selling similar products to the same customers and Barrett needed to reorganize them. Moreover, new business units were created to enable decentralization and delegation of decision making, which makes the company better coordinated and more nimble. Barrett also wanted to change the culture of the organization toward...

Words: 1086 - Pages: 5

Premium Essay

Advanced Marketing

...combined to form a sort of white paper for the doctors to come to very important decisions based on the type and category of service that they plan to have. This will allow the doctors to speak about the very important concept of price differentiators so that the orthopedic centre ad come to broad price based strategies. This intelligence is a very important tool for taking very important moves for doctors in terms of inputs for services and output for types of services that are expected to be given to target customers. It is also important for Doctors to know if this will be viable in the vicinity and if it is even right for them to start such a service. References Kotler, P., & Keller, K. L. (2012). Marketing management (14th ed.). Upper Saddle River, NJ: Prentice Hall. Discuss how Intel changed ingredient-marketing history. What did it do so well in those initial marketing campaigns? In 1991 Intel marketing manager Dennis Carter created Intel. Intel is an American multinational company, manufacturer of semiconductor computer circuits. Intel has become world’s most recognizable computer brand after it started the long running Intel inside...

Words: 619 - Pages: 3

Premium Essay

Ingredient Branding Case Study Intel

...VIEWPOINT Ingredient branding case study: Intel Introduction 1. Introduction to ingredient branding 2. The need for an ingredient brand 3. Developing the ingredient brand strategy 4. Intel co-operative marketing strategy 5. Creating a quality standard 6. Intel campaign investment 7. Ingredient branding results 8. Ingredient branding success factors 1. Introduction to ingredient branding Every month more than 4 million billion (4 x 1015) transistors are produced; more than half a million for every human on the planet. Most computer chips each comprise more than 7 million transistors. Twelve years ago computer chips, in the eyes of consumers, were a generally unknown component of PCs - a commodity product. From a competitive standpoint, a computer chip is a typical commodity. Take one out, put another in, no performance difference. Chips are something most customers don't see, many don't understand, and large numbers don't care about. But Intel has built a brand around a commodity. The company was founded in 1968 and went public in 1971. By 1997, it controlled 90% of the world's market for personal PC microprocessors. Although the market is more competitive today, Intel is still the largest chip manufacturer in the world. 2. The need for an ingredient brand Intel developed the chips which set the standard for personal computing during the 1980s, beginning with the 8086 chip and then developing a series of product improvements. Competitors rapidly adopted the same naming convention...

Words: 1605 - Pages: 7

Premium Essay

Global Business Environment Analysis of Apple

...1 The volatility and evolution of computer industry Starting from 1976, Apple computer created the personal computer (PC). After IBM transformed the PC from proprietary systems into open structure, PC has been dominated by Wintel (Windows + Intel) structure. Apple insists in adopting proprietary and niche market strategies made them keep losing market share till less than 3% in 2001. However, its strategy with ignoring the market trends makes it lose the market after years. 1.1 Industrial changes: Apple lost PC market because of ignoring industrial changes The PC industry has evolved in the past decades. There are 3 phases. Let’s take a look at these phases and Apple’s position in each phase. Before 1981: Proprietary Systems. Every PC producer had to develop self own hardware and software. It was proprietary. Most buyers were technical people. There were 2 main streams in the market: Apple style machine and IBM style machine. During this period, Apple was the leader. Its strong developing ability made the Apple II became a family commodity. However, Apple didn’t use patent or trade secret to protect its products. Many computer companies re-engineered Apple II and made cheaper similar products to compete in the market. For example, Acer copied Apple II and developed the Little Professor Series. 1981- 1997: Open structure. IBM turned the PC into open structure. Compaq, HP and many other producers started to show in the market to produce IBM compatible PC...

Words: 3744 - Pages: 15

Free Essay

College

...Breanna McCarthy NT 1110 comp. strategies & logic Unit 5 Analysis 1 Pentium Flaw Nature of Pentium flaw: Engineers discovered a flaw in the microprocessor in the floating point math subsection. This would cause low order bits to be incorrect. This could quickly lead to larger errors in calculations When and how it was discovered: This flaw was discovered in 1994. Apparently Intel engineers found it but decided to keep it quiet until a professor, Dr. Thomas Nicely, discovered it and made it well known to the world, after not receiving a response from Intel on the matter. Intel’s response to the flaw: This incident actually helped make Intel a commonly unknown computer supplier to a household name. They responded with the Intel inside campaign, and becoming more user friendly in their business practices. They fixed the flaw in the microprocessors to come. Did Intel handle the problem correctly?: I feel that this was actually good for Intel. It helped them to become a well-known computer supplier and put them in gear to head in the right direction. They are a very successful company as of today even with the flaw. What did Intel do to satisfy customers?: Intel launched the Intel Inside Campaign as well as to create awareness to avoid a lasting negative impression to customers. What would happen if the same type of flaw happened today?: If the same thing were to happen today, I’m not completely sure that it would make it out into computers. With the constantly...

Words: 272 - Pages: 2

Premium Essay

Intel Corp.

... | |Case: Intel Corp. | |Objective: This case covers a wide range of financial policy issues: the competitive dynamics of innovation; the appropriate capital | |structure for a firm in a highly innovative business; the fundamentals of cash disbursement policy; common stock repurchases; and | |consideration of more complex hybrid securities. Intel needs to change its financial policies as they grow/mature into a cash cow from a | |startup. The case revolves around an understanding of the Microprocessor Industry. From a market structure perspective the case deals with the| |advantages and disadvantages of being a first-mover vs. being a second-mover. The competitive role of financial flexibility must be addressed.| |Finally, what are the major issues associated with holding cash (costs and benefits)? Again several financial management issues must be | |addressed. There are tax issues, agency issues, signaling issues, timing issues, just to start. The dynamics of cash disbursement policies, | |particularly dividends and stock repurchases must be treated holistically. | Executive Summary The subject of this Harvard Business School case analysis is the Intel Corporation (NASDAQ: INTC) from its creation...

Words: 2483 - Pages: 10