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SWOT Analysis of Intel Corporation Intel Corporation is the largest semiconductor manufacturer in the world.

It is an American global technology company founded in 1968 by Gordon E. Moore and Robert Noyce. The companys product line includes network interface controllers, motherboard chipsets and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing. The SWOT Analysis of Intel Corporation is given below: Strengths 1. Intel is globally recognized brand name and has strong brand loyalty. 2.Intel was the dominant and pioneer supplier of microprocessors for PCs. It is still dominated by numerous memory devices. 3.Intel is a global technology corporation and the worlds biggest semiconductor chip producer, based on revenue. 4.Intel is the originator of the x86 series of microprocessors; the processors set up in most personal computers. 5.Intel presently has around 80% of the microprocessor market share while AMD has approximately 17%. 6.Intel Corporation merges superior chip design ability with a leading-edge mechanized capability. 7.Intel is listed at number 48 in 2010 standing of the worlds 100 most influential brands published by MBO. 8.In 1990s, Intel was one of the biggest and most successful companies in the world. Intel was the main and most beneficial hardware supplier to the PC business. 9.The operating profit of the Intel during fiscal year 2007 rose by 45.4% over 2006 and net profit increased by 38.3%.

Weaknesses 1. Intel sometime used divisive strategies in defense of its market position against its competitors. 2. After 2000, Intels leading position in its core business was greatly reduced. By the end of the 2006, Intel proclaimed a reform that resulted in the dismissal of 10,500 employees or near 10 percent of its labor force by July 2006. 3. By the end of the 2006, Intel proclaimed a reform that resulted in the dismissal of 10,500 employees or near 10 percent of its labor force by July 2006. 4. The company faced decreasing revenue in financial year 2008. 5. Intel has not achieved economies of scale and economies of scope throughout the long history. 6. Retail prices are higher as compared to the prices of competitors. 7. Not presence in the ultra-mobiles processors market. Opportunities 1. The company should be customer-oriented because customer preference changes after few months. 2. Customers always look for new and updated products. 3.Product development and markets penetration in the existing markets is also a good opportunity. 4. Advancement in technology also provides the opportunity to offer new products. 5.Intel is in the rapid changing industry; innovation is the only way to remain in the industry and to be leader. 6.Diversification in related and unrelated business such as: security devices, broadband, cellular industry, etc. 7.Backward and forward integration may reduce the cost, improve the quality and service. 8.Changing circumstances after economic slowdown or financial crises is also helpful for the company.

Threats 1. Advancement in technology obsoletes the manufacturing facilities and products. 2. The strong price war is going on between PC producers. 3. Many competent PC makers are using inferior performance ICS. 4.Changing customer taste and preferences along with the reduction in brand loyalty is a major threat. 5.Currency changeability in different countries create problem for the business of the company. 6. Intel has strong competitors in the industry such as Dell, IBM, etc. 7. The company is facing strong competition to sustain its market share. 8.Intel Corporation is facing strong political instability, regulation and tariffs in different countries.

Assumed Key Determinants for Intel Corporation


Intel has the following factors which gives them an upper hand over their nearest competitor: n Speed to market capabilities ability to develop next generation of microprocessors faster than other players

n Intel Inside campaign creates brand equity and loyalty over time (in 2001 Intel brand name valued at $35 billion) creates bargaining power over, and tension with, computer manufacturers

n Skill and experience at high volume, low cost chip production copy exactly processes; high yield rates in fabs

n Cost and complexity of market entry cost of development and fab is approximately $1 billion

n Intels financial resources allow it to: buy options on a wide variety of new technologies

vigorously defend its patents

Intels Key Resources and Capabilities (Core Competencies) n Resources: Intel Inside Brand Name Financial resources Stock of engineers/ scientists Intellectual property (patents) and lawyers to enforce Relationship with Microsoft, IBM, Compaq, etc.

n Capabilities: Speed to market in chip design and manufacturing ramp up. Yield rates in fabs (manufacturing expertise; copy exactly processes). Ability to attract high quality people (aided by location) Ability to create and sustain brand names(Intel Inside & Pentium).

Intel uses core competencies like innovation, collaborating and marketing in the design and manufacture of integrated circuits, as well as financial resources, global presence, brand recognition and software development technology and R &D department which act as the key determinants for the company. Intel has the scale ,capacity, and global reach to establish new technologies and respond to customer needs quickly. Some of the key factors are: Customer orientation: Intel focuses on developing next generation of products based on the needs and expectations of customers. Their products help enable the design and development of new form factors and usage models for business and consumers. It offers platforms that incorporate various components designed and configured to work

together to provide an optimized computing solution compared to components that are used separately. Architecture and platforms: Intel focuses on improved energy-efficient performance for computing and communications systems and devices. Improved energy-efficient performance involves balancing improved performance with lower power consumption. They continue to develop multi-core microprocessors with an increasing number of cores, which enable improved multitasking and energy efficiency. In addition ,to meet the demands of new and evolving notebook, consumer electronics and various

embedded market segments, they offer and are continuing to develop SoC products that are designed to provide improved performance due to higher integration, lower power consumption and smaller form factors. Silicon and Manufacturing Technology Leadership: Intel's strategy for developing microprocessors with improved performance is to synchronize the introduction of a new micro architecture with improvements in silicon process technology. They plan to introduce a new micro architecture approximately every two years and ramp the next generation of silicon process technology in the intervening years. This coordinated schedule allows them to develop and introduce new products based on a common micro architecture quickly, without waiting for the next generation of silicon process technology. They refer to this as their " tick-tock" technology development cadence. In keeping with this cadence, they introduced new micro architecture using their 32nm process technology in 2010. Strategic Investments: They make investments in companies around the world that they believe will generate financial returns, further their strategic objectives, and support their key business initiatives. Their investments, including those made through the Intel Capital Program, generally focus on investing in companies and initiatives to stimulate growth in the digital economy, create new business opportunities for Intel, and expand global markets for the products. Their current investments primarily focus on the following areas: advancing flash memory products, enabling mobile wireless devices, advancing the digital home, enhancing the digital enterprise, advancing high

performance communication infrastructure, and developing the next generation of silicon process technologies. Business Environment and Software: Intel is well positioned in the technology industry to help drive innovation, foster collaboration, and promote industry standards that will yield innovation and improved technologies for users. Intel plans to continue to cultivate new businesses and work to encourage the industry to offer products that take advantage of the latest market trends and usage models. They frequently participate in industry initiatives designed to discuss and agree upon technical specifications and other aspects of technologies that could be adopted as standards by standard setting organizations. Through their Software and Services Group, they help enable and advance the computing ecosystems by providing development tools and support to help software developers create software applications and operating systems for platforms .The software expertise of its Wind River Software Group in the embedded and handheld market segments will expedite the growth strategy in these market segments. Internet Proliferation and increasing user demand for PCs with greater performance has laid a great platform for Intel to innovate more. Intel's silicon and manufacturing technology leadership can potentially help them to develop low power microprocessors for mobile microprocessors