Intel Strategy

2401 Words10 Pages
Strategic Analysis of Intel Corporation

A Report to the senior manager of Intel

Module: BUAP08 Programme: MBA Student Number: 1814589 Due Date: 19 Apr. 2010 Date Submitted: 20 Apr. 2010 1450 words

1.0 Introduction
Intel Corporation is one of chipsets maker who is famous throughout the world. It is Intel who predominate the chipsets industry and the market share of chipsets of Intel is far more than its’ competitors. This report will examine whether there are strategic problems ahead and propose strategies for the future. First the analysis of external environment will be given, which includes macro environment analysis, industry analysis and Key
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i.e. TSMC, for lower tech products. So the bargaining power of suppliers is low but may increase.

The bargaining power of buyers is relatively low because the market share of Intel is significantly higher than its’ competitors. The sales of the chipsets of Intel account for a lower portion of the seller’s annual revenues because the revenue of Intel stream PC Makers(HP, Dell etc) plus emerging market. So the bargaining power of buyers is low but may increase.
The threat of substitute products or services is low because Intel hold more than 80% market share in chipsets industry. The real competitor is AMD. Customers may find that it is not easy to choose the product of AMD.

To conclude the industry analysis, the chipsets industry is oligopoly and it is hardly possible for other company to enter.

From the analysis that mentioned above, the following Industry driving forces, Key success factors, Opportunities and threats can be concluded, as presented and explained in Table 2, 3 and 4, below.

Table 2: Industry Driving Forces | IDF | Explanation & Implications | Globalisation is cutting company costs and increasing Brand image | Globalisation can enlarge the market share of Intel chipsets and build strong brand image. | The demand of fast speed and lower heat of chipsets. | Consumers want chipsets to be faster and power should lower. | Various product type of chipsets (like PC server & notebook) | It depends on the various demands of consumers for chipsets
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