SWOT Analysis For Intel Corporation

Company Introduction:

Intel is the largest semiconductor manufacturer company in the world. It is an American of global technology which was founded in the 1968 Gordon E. Moore and Robert Noyce. Intel is headquartered in Santa Clara, California, the US. Intel develops integrated digital technology products and components for the computing and communication industries. The company focuses in the expansion of its business operational and geographical presence through obtaining and associating with the market leading companies across the world. The company offers microprocessors, chip sets  motherboards, flash memory, wired and wireless connectivity products, communications infrastructure components, including network processors, and products for networked storage.

The company also develops computing platforms, which defines as integrated hardware and software computing technologies that are designed to provide an optimized solution. Its business activities are classified into three business segments, PC Client Group (PCCG), the Data Center Group (DCG), and the other Intel architecture IA. The company’s operations are spanned across America, Asia Pacific, Japan and Europe. In the process, the company recently acquired certain assets related to Cray Inc.’s high-performance computing (HPC) interconnect program. The company also signed an agreement to acquire Real Networks’ foundational streaming media patents.

Over 80% of the personal computers in use around the world are based on Intel Architecture microprocessors. The company has a strong market position in the semiconductors industry, which enhances its brand image. However, intense competition in all its market segments could reduce the company’s market share and profitability.

SWOT Analysis:

The analysis consist of the internal and external factors of the company Strengths, Weaknesses, Opportunities and Threats.

Strengths:

  • Intel is globally recognized brand name and has largest market share all over the world and has strong brand loyalty attached to it.
  • It has a strong brand image as well as strong market position.
  • The company products have the advanced technology capabilities to meet today’s need of speed and accuracy with strong durable semiconductor solutions.
  • Intel is the first company which came up to the market with the idea of microprocessor, and it has continued that bequest by making advanced in them rapidly with passage of time.
  • If we glance at the company revenue them we will come to know that it is the largest number global technology company which has the maximum business of its industry.
  • Most of the computers have x86 microprocessors and almost every brand which makes computer is using Intel products in it.
  • Intel gains the market share of more than 80%which seems more or less a monopoly for the company, it may have AMD has its competitors but no need to worry, because they still don’t harm them in any way due to large number of revenue.
  • Earlier in 1990’s it become the world’s largest and reliable supplier to the PC business.
  • The company has the loyal customers all over the world and in many parts of the world; people are not familiar with any other brand apart from Intel.
  • Intel has invested very heavy amount in its Research and Development department, which has played a very crucial role in the success of its brand value.

 

Weaknesses:

  • Sometimes Intel caught in a very technical strategy in response to its competitors, which is not easily understood, by most of the people.
  • Intel has taken the advantage of being a brand leader, by not taking the benefits from economies of scale, and provides cheaper items t its consumers.
  • Intel saw a loss in the financial year of 2008 in terms of revenue; they failed to meet their expected profit.
  • They don’t have focus on the mobile market, which is considered as the future of the internet.
  • They saw a great steep earlier in the 2000 because of the revelation of the AMD.
  • No doubt that the company has good market, although it needs to concentrate on the customers.

 

Opportunities:

  • Intel should keep customers as their first preference and make changes on regular basis to meet the needs of their users.
  • Market permeation and product development will be more than useful if they focus on their existing market.
  • They have relations with partnerships and alliances.
  • They are expending growing market.
  • Intel launched the Atom processors.
  • Related diversification would prove to be a huge a success for Intel if they focus on cellular or broadband portion.
  • They can reduce their production cost by opting for forward and backward integration. It will not only reduce cost but will also result in better quality also.
  • They can make partnerships with some of the other brands to make sure they rule the market in every possible way.

Threats:

  • Change in currency value makes it difficult for the company to come up with the perfect pricing strategy, which will benefit all.
  •  As the technology is increasing rapidly, the present manufacturing might just go to waste.
  • Customer taste might change and their preferences will shift to the other competitive products if they do not get what they need.
  •  Some of its other strong competitors, which it should take into considerations, are Dell and IBM etc.
  •  Political issue has become quite a problem in some of the areas.
  • Market share becomes very hard to maintain with emergence of new and cheap local companies.     

Conclusion:

Aside all the factors, the collective image of the company is the trust worthy in all the situations and it can be presented in the market for a very long time and succeeded greatly in these years. Recently Intel also has introduced the 3D transistor, which is known as tri-gate transistor to stay in the market and increase their market share. Here the company only requires the continuous updating in the products and make a convenient solution to update the old products to make a new record in the market.

Analysis of Intel Company has focused on both negatives and positives of the organization and it helps them in a great in the future that what possible options are available to them. With its present market share, it does not need to worry much about others but it is always works in the best interest of the organization to stay on the safer side. Intel has surely won the heart of millions and has promised to do that in the near future also. Scopes of the products are very high and users are satisfied with the products and still no chances have occurred about the complaint registration concerning company products.

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February 23, 2013 · Admin · No Comments
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