The Intel Corporation
Introduction The main purpose of this case analysis is to find the issue and problem that Intel Corporation faced and how they improve their performance and solve problems. First, I will summarize the history of Intel Corporation. Second, to point out the challenge that Intel Corporation has. And, third, I will use SWOT analysis to analyze the internal strengths and weakness and external opportunities and threats of Intel Corporation. Eventually, I will give some recommendation.
History of Intel Corporation Intel Corporation is a leading microprocessor producer for personal computer (PC) in the world. Intel Corporation was formed by In 1968, Robert Noyce and Gordon Moore founded Intel
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Moreover, the customers will never feel satisfaction with buying the same or few types of microprocessors. In order to satisfy various demands, Intel always spend huge amount and put a lot of efforts into their R&D department which makes Intel is able to introduce new products before its competitors. Consequently, Intel can provide the choices to the demand from high-end product with high price and the low-end demand with lower price.
3. Economic of Scale Intel has almost dominated the PC, laptop, and corporate computer’s CPU which allows Intel to build up highly barriers for the new entrants because of the large economies of scale. Once Intel reaches the economies scale, they have a significant cost advantage over its competitors and that this dominant ability will make its competitors are essentially price takers, with little power to set up their own prices.
Weakness
1. The Struggle of Expanding Smartphone Business Many experts claim that the smart phone will be flagship product in high tech industry for next decades. However, currently, ARM (The Architecture for the Digital World) dominates the smart phone chip market and acknowledges the first mover advantaged. As a result, it is very difficult to expand smart phone chip business for Intel and lose its competitive advantage.
2. Downward Microprocessor Demand
Intel operates in an industry, which is comprised of products involving high research and development costs, continuous product improvement and new innovations. The companies in the industry are having high economies of scale and are knowledge based. It helps both the service and manufacturing sectors in the growth process. Intel is positioned as a leading company with its ability to adapt to technological changes and its strong relations with other businesses who are major buyers of integrated circuits. The industry in which it operates is very competitive and comes with high risks as
How and why did Intel’s added value change over time? What would you identify as the crucial events, decisions, or moments in that transformation?
Another way of achieving the profit of the added value is investment in software development to leverage the advantage of the high performance processors. And that was achieved by development of complementors, although Intel had a relationship with Microsoft, but it was enough, since it required Microsoft years to develop the software, were Intel is moving faster, by adopting the strategy of complementors, Intel build its capital. Intel strategy was to invest in companies that fit strategically into Intel’s business strategy as well as offered a financial return.
This is especially important for an IT company such as Intel as it can be the key for the companies to survive or the reason which made the failure of some IT companies. There are more and more consumers in the wireless industry, nobody can argue that the PDA and cell phones have become so popular; they are the new digital trends of this era. Intel cannot ignore this profitable industry. So it has researched and announced the new chip “Atom” for mobile devices which is believed to “unleash new innovation across the industry." said Intel executive VP and chief sales and marketing officer Sean Maloney (Geoff, 2008).
Intel began supplying microprocessor to IBM. To meet the demand, Intel licensed to as many as 12 other companies to produce 8086 chips, which left Intel with just 30% of the total revenues and profits for that product. Gradually, they reduced the number of licensee to only IBM. Thus they retained the “profits pool” within their value chain.
In 2013, Intel spent more than 10.6 billion in Research and Development (R&D), and became the third biggest spender in R&D. Intel invests in R&D to get on with Moore’s Law, an observation by company co-founder Gordon Moore in 1965 that computing power doubles every two years. As the company works to cram more transistors onto its circuits, development eats most of the company’s R&D spending. “It’s getting more expensive to do the development piece of it
In the 1990s, one of the largest and most successful companies in the world was Intel. For PC business, Intel was a significant and beneficial hardware provider.
For years, AMD held the place of a distant follower of the large microprocessor market leader, Intel. Up to there, the competitor Intel led the market (with a “push” strategy) by creating consumer needs thanks to technological innovations. Those were linked with strong marketing campaign in order to facilitate a quicker adoption process of their new product line. However, in 2003, AMD change its traditional strategy to use a widely different one by switching into a blue ocean strategy. Indeed, AMD has changed course to become a “starter” firm. AMD has decided to launch at first its own brand server microprocessor range, called “Opteron” before one of Intel. At this moment, the firm made the decision to initiate the moves of server segment and therefore take heavier risks in term of investments, sales, pushing partners
QuikTrip (QT) Corporation is a privately held company established in 1958 that specializes in convenience stores that service Western states. Through analysis of QuikTrip’s operating environment, we identified and evaluated opportunities the company can change or pursue. This analysis was accomplished utilizing a strengths weaknesses, opportunities and threats (SWOT) analysis ensure a systematic evaluation is conducted.
In one and half month the single word of one mathematician has turned into a worldwide campaign against us. AMD, Cyrix, and Nexgen are benefiting most from these events. They proved to have become quicker in manufacturing clones of our innovative products. Given this shorter time to market, they may jump on this opportunity to deliver Pentium clones any time. Our strategy to stop competitors copying our new products was heavy patent protection for the Pentium brand, however if our brand image is continually damaged to such extent, that protection would not give us the competitive advantage we expected. Although we have been the chips of choice for most of users, with the current negative publicity, the competitors may find their niche and expand their market share. Cost of switching from one type of processor to another (for example from Intel to AMD) is not significant for computer manufacturers due to the modular nature of this product. We know that this flaw would not affect any significant portion of the personal users (about 3.7 millions chips sold). The business users with heavy calculation needs such as engineering and specifically financial sectors would
America was not buying into that claim and 90% of computers used are Intel based. (Lai, E. (2007) Vista, Mac Use Both Increase. Retrieved January 9, 2008, from PCWorld Web site http://www.pcworld.com/article/id,140422-page,1/article.html).
Over the last decade, electronic-based companies such as Samsung and Apple have collaborated with cellular-phone carriers, and have studied the average consumer to find endless ways to improve the cellular phone. As a result, the smart phone was born. With their ability to provide users with instant access to communication, entertainment, Internet access, calendar, news, social media, and much more, the smart phone revolutionized and shifted the path of modern technology. In 2006, Apple began this revolution with their release of the iPhone. Being the first proper smart phone, many other companies attempted to mimic the unbeatable features and technology that Apple had included with the iPhone.
i believe i am a funny person in general, so people tend to be easy around me and not feel uncomfortable if they do not know me.
One night in 1981, Jeff Munks, a police office in San Jose, CA responded to an urgent call and arrived at a residence where a Vietnamese immigrant who spoke no English was screaming and waving his arms agitatedly. Next to him, his son was having trouble breathing. After Jeff guessed what had been happening and immediately called for an ambulance, he kept thinking about emergency situations where danger is exacerbated because of a language barrier. This resulted in Telephone Interpretation being offered since that year. This service connects trained interpreters via telephone to Limited English Proficient (LEP) Individuals. Cyracom International is one of those companies that provide critical
Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.