Founded in the year 1968 by Robert Noyce, Gordon Moore, and Andy Grove, Intel has become a common household name when computer chips are concerned. During its initial stage, it produced memory chips such as DRAMs and EPROMs. Those were the foundations that gave way to the development of groundbreaking microprocessors that brought about a revolution in the industry. The year 1971 was historic for Intel, as it introduced the very first 4004 microprocessor. There on, the company has associated itself with producing a varied range of products that targets areas such as wireless networks, networking, cloud computing, and AI. Recently Intel has focused itself on developing and broadening the 5G network for seamless internet use.
Although headquartered in California, Intel has spread its roots all over the global map. The firm has three assembly and test locations in China, Vietnam, and Malaysia whereas Ireland, Arizona, New Mexico, Israel, and Oregon serve as water fabrication locations. Furthermore, it enjoys a pristine position in the international market, and China including Hong Kong stands as the biggest market for Intel products as more than 30 percent of the firm’s total share amounts from there.
Intel growth strategy
Intel as a global brand employs a variety of strategies to ensure its growth while appropriately reflecting its core values, mission, and vision. The list for the same is provided below for better comprehension.
Intel has secured a very reliable partnership with Microsoft Inc which has been dominating the computer market for decades and the partnership has greatly benefitted Intel, in terms of sales as well as establishing a brand name. Intel today has marked its area by creating a strong brand value of approximately $25.845 billion. Furthermore, the core strength of Intel lies in its heavily invested and efficient R&D feature that allows Intel to acquire an edge over other technological giants. Also, Intel boasts of a huge market share. Being one of the most renowned and trustworthy names in terms of microchips, Intel has acquired a vast customer base case study assignment help. This also secures them from the threat of new entrants as people trust the brand and are loyal to its products. Additionally, Intel has a driven and trained human capital and ensures up-scaling their human capital in every way possible.
There are several weaknesses borne by Intel and the most primary one is its tendency to overproduce semiconductor chips that over-floods the market. Previously Intel tried to tap into the smartphone market but did not gain any significant success in that arena. Therefore, its business segment is limited to a single arena and this over-dependency leaves a wide room for irreparable losses. Additionally, the marketing platform of Intel is not refined as it lacks a unique selling proposition and that might be a vantage point for competitors. Intel is also infamous in the industry due to the high attrition rate of its employees and therefore, it bleeds heavy money into the induction and training of new employees. Along with the above, Intel has stagnated its progress in developing nations such as India and Bangladesh. you can access our essay plagiarism checker for a glitch-free experience.
Consumer behavior has been rapidly changing over the last decade and that attribute might be a great area of growth for Intel as it can tap into products that are in demand. This way they can curate an entirely new segment and accordingly generate revenue from there while establishing themselves better. Furthermore, their prior investment in online channels can also be used for this purpose to analyze consumer demands and accordingly shape their products. Additionally, they can employ AI to expand their features and provide consumers with tools like never before. With the current economy where the economy is getting back on track after the pandemic and people have become more reliant on computers, they can explore a booming market with fresher concepts and powerful AI tools. Our online essay elpers offer instant assignment help No matter what is your deadline,
Along with an ocean of opportunities, Intel is also susceptible to threats from the external environment as it depends too much on a single product. Therefore, if a better deal on the same product is offered by a competitor then Intel will lose its edge and succumb to it. Although Intel enjoys a superior market position, it has equally competitive rivals such as IBM and AMD as they too have a great R&D. Furthermore, the core product of their material is based in China. However, the Chinese are notorious for producing and selling low-grade products. This may pose to be a problem for Intel especially with competitors close by. Lastly, several other companies are selling chips at a lower cost than that of Intel with the same basic features. This is a constant threat to Intel sales along with the rising price of raw materials.
Loyal customer base
Partnership with Microsoft
Strong brand value
Great R&D feature
Driven and skilled workforce
Reliability on a single product segment
Failure in the smartphone arena
Overproduction of semiconductor chips
Marketing without USP
High attrition rate
A booming market for AI-infused tools
Creation of an entirely new product segment based on data analytics
Rising economy reliant on computers
Competition from IBM and AMD
China-based production relating to quality issues
Dependency on a single product and therefore is susceptible to threats
This PESTLE analysis is aimed at understanding how external factors such as political, economical, social, technological, legal, and economic aspects affect Intel.
In the current political scenario, several governments are focusing on globalization and that can be a great opportunity for the firm to expand its global space. However, the same factor can also pave way for Intel’s competitors. In addition, due to the pandemic, governments of several nations have still imposed restrictions on travel along with goods and services transportation and sale which can affect the economic position of the company.
The current economy is bouncing back from the Covid-stricken era when several nations had to shut themselves down to save their people. However, a plus point that stemmed from such lockdowns was the dependency on computers and PC’s which is Intel’s growth arena. In addition to that, people have increased their disposable income and this factor has provided a great boost towards product sales from Intel. Similarly, the economic stability of developed markets is also an asset for Intel.
According to social trends, the internet and computers have become an essential part of everyone’s lives and this provides a great growth opportunity for Intel. Furthermore, the social spectrum has been witnessing improved wealth distribution among the people which readily increases the buying capacity of the masses. In addition to that owning technological gadgets and tools are a status symbol today and the same has greatly benefitted Intel.
The time right now can be considered to be the digital era and this has provided a huge opportunity to firms like Intel as the requirement for faster processing and wider storage has dramatically risen. The global digital transformation has been rendering devices obsolete at a fast pace therefore, Intel is at risk of heavy investment in R&D as well as has an opportunity to develop groundbreaking technology to get ahead of its competition.
Intel is spread over several nations and is to follow suit concerning their rules and regulations. Following this, some governments have stricter regulations over trademark and patent rights and Intel has to face this issue frequently. In addition to that, Intel has to abide by waste regulations dictated by nations and proceed which at times might be financially draining for the company.
The masses today have aligned themselves with firms who do their bit to protect the environment, therefore, Intel has also adopted a few measures to contribute towards the safety of the environment. The firm has developed more energy-efficient processors which consume less energy and aligns with the sustainable factor of the company. It has also opened itself to several environment protection programs to market itself as an ecologically conscious company.
In summation, from the above information, we can assess the current position of Intel in the international space as well as understand the measures that are responsible towards it. Intel as an element has many strengths to its side but needs to work on its weaknesses and opportunities to ensure long-term presence.
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