Intel Strategy Analysis

6425 Words Sep 5th, 2012 26 Pages
Intel Corporation
Strategic Analysis

Maithilee Deshmukh-123
Siddhesh Hegde-51
Swapnil Wagh-53
Swati Agrawal-54


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
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7) Brand Loyalty(-)
Difficult to challenge the existing brand loyalty of Intel by a new entrant
Bargaining Power of Suppliers (Low) 1) Commoditized nature of generic components that make up processors(-) 2) Low switching costs(-)
If a supplier raises costs a microprocessor firm has minimal incentive to remain with that company
Bargaining Power Of Buyers(Low) 1) Critical Component to the buyer(-) 2) Buyer information availability (-)
Difficult for manufacturers to forgo the advantage of “Intel Inside” Logo after its aggressive marketing efforts. 3) Exclusive contracts and pressure from Intel to keep AMD out of the buyer’s machines(-) 4) High threat of forward integration by Intel(-) 5) Low threat of Backward integration by Buyers like Dell etc.(-)

Existing Rivalry among Competitors(High) 6) 2 main competitors: AMD & Intel 7) High Brand loyalty among consumers towards Intel(-) 8) Concentrated Industry: 9) Zero-sum game, where one company's gains are another's losses because fixed costs are high and marginal costs are low and incremental customers are to be shared 10) Strong exit barriers(+) 11) Due to high specialization of facilities and the structure of the business, both Intel and AMD have attempted to diversify into other PC component but these products still remain linked to their microprocessors due to compatibility issues. Hence, each firm is

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