Intel Strategy Analysis

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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…show more content…
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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