A Case study of Intel Essay

IntroductionIn this case, Ive studied the globally known semiconducting material manufacturer, which is the Intel. The purpose of the bank note of hand of line of reasoning is to analyze the objectives and strategies used by Intel, SWOT analyzing and discuss major issues or problems that the company faced.Ab stunnedIntel spate is the biggest semiconductor manufacturer in the universe of discourse and has changed the global commercialiseplace radically since it was founded in 1968. The first handheld calculators and PCs (Personal Computers) were essential through the innovation of Intels microprocessors. In the first 70s change magnituded competition from Japanese semiconductor manufacturers had dramatically trim the gainfulness of this marketplace this made Intel to shift the companys focus to microprocessors.From the belatedly 80s until the late 90s Intel had a 10-year period of unprecedented growth as the elementary hardwargon supplier to the PC persistence, supp lying microprocessor to IBM. Intels harvest-tide line of Pentium processors had become a household name. Today at least 80% of Intels processors ar used in PCs globally. Their product line consists of chipsets, m otherwiseboards, flash lamp memory used in wireless colloquys, net clearing devices, laser printers, industrial machinery, and cellular phone base stations.MissionDelight our guests, employees, and parcel of landholders by relentlessly delivering the political program and engineering science advancements that become essential to the way we work and live.Values customer OrientationResults OrientationRisk TakingGreat Place to lopQualityDisciplineObjectivesExtend our silicon technology and manufacturing leadership demonstrate unrivaled microprocessors and platformsGrow profitability macrocosmwideExcel in customer orientationMajor issues and Problems1. Dust would contaminate the circuits during manufacturing.SolutionIntel turned plumb rooms for keeping dust out of the process. good wordI defend with the decision of the company to develop clean rooms. Now that they already have these rooms, they can now have a product that would work 101% at its best for the consumers. .2. Etch circuit lines on silicon wafers, without having the etched lines fracture and break as the water was heated and cooled repeatedly during the manufacturing process.SolutionTo dope the metal oxide with impurities, making it less brittle. Intel subsequently went to nearly lengths to keep this aspect of the manufacturing process secret from competitors for as long as possible. RecommendationIntel is so intelligent and optimistic for its products. With this problem at that conviction I am pretty sure still Intel thought of this extraordinary solution. With this, the challenge now is to offer this technique or process to forever and a day produce part products.3. Intel underestimated Japanese threats in terms of technology which resulted to dropping off drachma o ne of their flagship product.SolutionIntel did not guess commit a new fabrication facility at a greet of $600 million that might affect the operation of its other products especially the microprocessor. RecommendationIntel shouldve been more(prenominal) conscious and aware of the possibilities and facts that new entrants and competitors will always be a threat for the company. With its decision, it is kind of frustrating for the fact that the DRAM was one time the best innovation and product of Intel. But the company left with no choice scarcely to exit the DRAM avocation. I wouldnt risk my other products to get affected by this mistake.4. The company exited its struggling communication chip business. The workforce was cut by 20,000, while costs were reduced by $3 billion.SolutionThe company did not lose bulk of the need to produce processors for mobile devices. In mid-2008, Intel introduced a new line of low-power consumption chips called atom. Intel has in any case been m aking moves into the graphics chip business. Recommendation tenaciousness and perseverance for your product should always be present in the company. I just commend Intel for creation so flexible and how quick they are in satisfying the ever changing demands of the consumers.StudyKey victor factors for IntelManagementIntel placed top priority on their people, and encouraged openness, fairness, and responsibility, Intel was suit qualified to take full value of its workers.MistakesThe most talented and brightest people that were industrious were given leverage when mistakes were made so that they would be encouraged to develop breakthrough technologies.Hard WorkMoore and Noyce refused to shy away from their inexperience and being willing to do what work they needed. Also admitting their limitations, they were able to seek out qualified employees to help build the company.CompetitionThey learned that the key to entrepreneurial success was by being in a constant adduce of awareness and fear of your competitors, entrepreneurs can become proactive instead of reactive, clutch new opportunities as they present themselves instead of letting them pass them by.ExclusivityBy specializing and focusing on a niche market, Intel was able to not solo stand out from the crowd, but to become market leader in the industry.Competitive Advan seteExpertise in ManufacturingHighest standards in high-quality clean turnoutThe company invests vast sums in R&D and manufacturingIt designs quality productsIt is able to leverage its manufacturing capability. This means it can increase performance to bring product to market in large volumes. Increasing volume and getting the product onto the market as quickly as possible are definitive elements in creating and maintaining a competitive advantage. It has a regular cadence (or rhythm) to the reading of new products or improvements to existing onesAnalysisSWOTStrengthsIntel is a globally recognized brand name and has strong brand loyal ty from its consumers.Intel was the trailblazer in microprocessors for PCs and memory devices.Intel is a global technology corporation and the worldslargest producer of semiconductor chip, based on tax revenue.Intel presently has rough 80% of the microprocessor market share whereas AMD has roughly 17% of the market.Intel distinguished itself from a commodity like limit and established itself as the brains of the computer industryWeaknessesIntel has been accused of using divisive strategies in defense of its market position against its competitors.Intel had uses its market dominance to unfairly stifle competitionSince 2000, Intel could not maintain the position as the dominant supplier of microprocessor in the industry.Retail prices are high compared to competitors.Opportunities crossroad development and markets penetration in the existing markets is also a good probability.Advancement in technology also provides the opportunity to offer new products.Offering more diversificati on with their products in connect and unrelated business such as security devices, broadband and cellular industry.Backward and forward integration may reduce the cost, improve the quality and service.ThreatsAdvancement in technology obsoletes the manufacturing facilities and products. The strong price war is divergence on between PC producers.Many competent PC makers are using inferior performance ICS.Changing customer tasting and preferences along with the reduction in brand loyalty is a major threat.Currency changeability in different countries create problem for the business of the company.The company is facing strong competition to sustain its market share.Intel Corporation is facing strong political instability, regulation and tariffs in different countries. product specialization of Intel can become a big threat. Having a hold in product line Intel runs the risk of being forced out of the market by a better product.The fast development of cell phones and other mobile gadg ets can perform the same tasks as PCs and is having a major negative impact on the PCs market.ConclusionTechnology StrategyIntel began in memory production and development in 1968Competition with Japanese firms with bigger economies of scale reduced Intels market share (see operable constitute of Intels DRAM market share) Intels development of the microprocessor (first designed in 1970) led to more and more R&D being delegate to this branch of the company Technology system change came from the middle of the company, DRAM was still pursued from senior managements perspective until 1986 Microprocessor development allowed Intel to sustain its revenue increases In 2001, Intel produced microprocessors with integrated Wi-Fi In early 2000s, Intel invested heavily in semiconductor production facilities to achieve raise economies of scaleAlso in early 2000s, Intel launched several products into non PC markets for their semiconductor technology, most of which were unsuccessfulIntels techn ology strategy has changed from a focus on DRAM, to a focus on microprocessors, and then on to heavily specialising in the field of microprocessors to achieve overwhelming productivity that has enabled Intel to sell their logic products at competitive prices to companies producing things other than PCsProduct/Market StrategyAggressive marketing strategy in 1980 (Project chat up) coincides with IBMs entry into the PC market, this repeats with Project CHECKMATE to secure more IBM contracts Intels primary buyer shifts to Compaq in 1986 because IBM would not commit to 80386, Intel can efficaciously play the big buyers (see functional map of buyers revenue) against each other, Intels higher revenue (see functional map) suggests more power lies with IntelIntel Inside marketing strategy to engage with the end user in 1990 lead to big gains in revenue 1990-1995 (see functional map of Intel revenue) Developed pricing strategy to increase premium on new chip designs to reduce demand when pr oduction was being ramped up, this extra profit also helped to cover start-up costs (see functional map, price of different processors) Marketing strategy moved away from PCs in late 1990s, early 2000s as the prices of semiconductor products came down Diversified buyers as Intel produces chips for different types of products, e.g. phones, TVs, communications equipmentIntels product/market strategy has changed from having buyers only in the PC industry to having buyers in many different industries that assert on semiconductor products. Its current efforts are to increase its market share in these non-PC areas.Development GoalsDevelopment goals from 1968 to early 2000s remained constant, be the first to market with the best product This goal was not achievable in DRAM, but was achievable in microprocessors Practically, the development of the company had shifted towards the logic side of the business before the official stance changed, so Intel was well positioned to take advantage of conditions within the industry (using clever marketing and buyer manipulation) to emerge as the star player As the PC market for semiconductors matured, other industries capable up that required logic, in the early 2000s Intel was trying to develop into a supplier for many different industries, and in some cases selling without delay to consumers Intels goals have changed from dominating the PC semiconductor industry to diversifying their products and buyers to record in more markets.Bibliography and Referenceshttp//news.softpedia.com/news/Intel-Says-Its-Back-With-a-Vengeance-66998.shtmlhttp//news.softpedia.com/news/Intel-s-Branding-Plans-Desconspired-12675.shtmlhttp//www.docstoc.com/docs/61656370/Marketing-Strategy-for-Intelhttp//essaysforstudent.com/print.html?id=78018http//essaysforstudent.com/Business/Intel-Pestel-Five-Forces-Analysis/75349.htmlhttp//www.zdnet.com/blog/computers/is-intel-pricing-itself-out-of-the-tablet-pc-market-with-new-atom-z670-processor/5271?tag=content search-results-rivershttp//www.intel.com/pressroom/kits/bios/lcrone.htm