Intel Analysis

Topics: Gordon Moore, Intel Corporation, Advanced Micro Devices Pages: 16 (569 words) Published: November 3, 2014
Presentation prepared by: Hryko L.V., Kondratenko

Short historic overview:
 Founded by Robert Noyce and Gordon Moore in 1968.
 Largest semiconductor chip manufacturer in the

 Manufacturing plants
found all over the world.





Packard Bell



Bargaining power of suppliers
 Abundance of suppliers
 Invest in own suppliers Intensity of exciting rivalry

 Suppliers do not have much power.
 With such few semiconductor manufacturers, price

has to remain competitive from suppliers.
 Suppliers have to be able to maintain high demand for
supplies in random spurts.

Threat of new competitors:
 Customers and buyers trust intel and AMD
 High capital requirements.

 Advanced technologies are required
 Patents limit new competitor
 High learning curve

Threat of substitute
 A lower performance
 Limited number of substitute

 No substitutes are available outside of the current

competitors within the industry.
 Fake chips are currently being produced overseas.
 New materials are trying to be developed as

Strategic groups:
 The value based ( Celeron)
 Mainstream ( Xeon)

 High- performance category ( Pentium 32- bit)

Industry life cycle : EMBRYONIC
 Intel first introduced 1k DRAM
 TI and Mostek had better design and low cost

 Intel lost a full generation to Japanese
 Intel faced strong price competition from Japanese
 Intel introduced 1 – megabit DRAM but has lost the


 1980 – “Project Cursh” +Design Wins (Intel and IBM):

IBM open standard, success in format war, being a free
rider by design wins.
 1983 – License Control: restrict licenses, more design win and more revenue, set up the industry standard
 Intel vs AMD: 1990 Red X camping - specifically
against AMD and the “Intel Inside” end-user branding
and advertising program.

 In June 1994, Intel engineers discovered a flaw in

the floating-point math subsection of the P5 Pentium
 The New York Times ran a piece by journalist John
Markoff spotlighting the error
 Intel offered to replace every chip. This resulted in a
$500 million
 1994: Pentium Bug: good response by product flow
and effective end user promotion.
 1990—95: Architectural competition: RISC vs CISK.

MATURE: Evaluate Intel’s shift in
strategy under CEO Craig Barret
 Aggressive strategy moves
 To enter new business: spent roughly $12 billion on
acquisitions and internal ventures in new markets
such as networks, wireless, communications, and
online services from 1998 to 2000
 To shift to the new position: changed the corporate
mission statement to “being the preeminent building
block supplier to the worldwide internet economy” in

Intel has not reached the decline stage because of
their ability to change, re-invent itself and re-grow

Intel is dependent on the effectiveness of its
leadership adopting sound values, strategies, and
creating an aligned, empowered organization

Political Factors
 Increased regulation of chemicals used within

 Environmental obstacles
 Patents, copyright, trade secrets
 Workers Safety
 Monitoring Chemicals
 Looking for ways to reduce water use
 Lawsuits with patent infringement

Economic Factors
 Concerns with World Economy
 Moore’s Law

 Taxes at home and abroad
 How the World’s economic state is affecting Intel
 How PC’s are being replaced

 Intel getting into new industries to grow profits

Social Factors
 Consumers are dependent on technology
 Shift in social norms

 Corporate Corruption
 Focus on Corporate Social Responsibility
 Intel is trying to create newest and best...
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