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What Is Porter's Five Forces Of Intel

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Porter's Five Forces Analysis Using Five Forces analysis brings the purpose to analyze the industry in order to determine the level of intensity regarding the competition and attractiveness of the industry (Porter, 1979). The attractiveness of an industry is measured in terms of profit; more profitability means a more attractive industry and otherwise. According to Porter (1979), the nature of competitiveness in a given industry can be figured as a composite of the following five forces: rivalry among competitive firms, potential entry of new competitors, threats of substitute products, bargaining power of suppliers, and bargaining power of consumers. Intel’s porter five forces analysis conducted to look for the influences of competitive environment within the PC components industry. The collective strength of these forces …show more content…

Buyers of Intel Corp’s products include computer and mobile phones manufacturing companies such as HP, Dell, Samsung, Acers, and Nokia among others. The buyers include end-user home computer builders and small "PC-Clone" shops that build customized machines in most cities. Buyer power in this industry has fluctuated from time to time, but for the most part, the "Intel Inside" logo has been considered by most manufacturers to be too important to forgo. The diversity of its buyers is advantageous to Intel Corp because it makes it hard for them to set or demand for their own prices. Consumers had no bargaining power in the past when Intel was the only producer of microprocessors but with the increase in competition has given consumers a choice and a more competitive price. However, several of these companies such as Samsung and Toshiba are now making their own processors and can therefore demand for lower prices and set the terms of business for Intel Corp. This is because they have several suppliers for the same products Intel Corp is

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