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Intel Strategy Analysis

In: Business and Management

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...

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