Intel Strategic Analysis
Intel Strategic Analysis
Executive Summary
Intel is a semi conductor, microprocessors, and chips manufacturer. It is an industry leader in the market with competitor such as Samsung, ARM, ADM and Toshiba. Intel’s strategy revolves around technological innovations, quality service delivery and maintains a platform that gives them a competitive advantage. They effectively use PESTLE, SWOT and Porter’s five forces to create an effective strategy that has ensured their industry success. In addition, the organization value chain analysis using Porter’s analysis clearly gives the firm an elaborate strategy for efficiency that ensures costs are controlled and quality services to their customers. They also have a short life cycle of one year for new products that ensures they release new innovations regularly as they respond to their customer needs and keeping check of competitors. They heavily apply differentiation to their products that ensure all products are different from competitors’ substitutes. Analyzed resources capabilities using VRIN analysis show how Intel is competitive compared to its competitors.
Table of Figures
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Table of Contents
Executive Summary
Introduction
Industrial Analysis and Intel’s Business Environment
Pestle Analysis of Intel
Intel’s Porter’s Five Forces Strategy
Porter Competitive Model of Industry Forces
Analysis of Intel’s Organization Strategy
Porter’s Value Chain
Intel’s Porter’s Value Chain Analysis
Intel’s Product Life Cycle
Industry Success Factors
Conclusion
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Introduction
Intel Corp is an American company in the business of manufacturing semi conductor chips, microprocessors, network interface controllers, flash memories, graphic chips and components needed in computers mobile phones. The company has a value of more than US54 billion and employs in excess of 100,000 people (Intel Corp, 2012).
Intel’s business environment exists in a market marked with new threats, entry of new products and firms, and increased competition. In spite of this, Intel’s internal environment shows that it has strong strengths that will withstand the new competition. This paper will analyze critically the internal and external environment of Intel with respect to the other company’s operation in the same market segment. Intel’s current strategic situation show that it is faring well compared to its competitors, but ARM current strategy of producing only chip designs have enabled it to cut costs hence increased it competitive advantage against that of Intel. On the other hand, Intel stable financial position as shown by the case study indicates that it has enough funds to invest more in research and development hence the reason of its current strategy of high tech innovations and technological advancements.
Industrial Analysis and Intel’s Business Environment
Intel has a strong market position in the semi conductors segment, which has been the biggest contributor in enhancing its brand image (Rainey, 2011). However, high competition in its markets segment has the potential of reducing the company’s market share and long term profitability. Emergence of new technologies that Intel has failed to capitalize has the potential of eroding its market share. ARM, Intel’s competitor in the microprocessor industry has capitalized on manufacture of the Emerging Smartphone and tablets segment. Intel’s strategic analysis shows that ever changing business environment present the company with numerous opportunities, and threats for the company (Hayden, 2012). These external forces affect the type of products produced, marketing and other organization’s strategies.