Competitors like AMD have considerable market shares but Intel has the biggest market share. Also, the low availability of substitutes weakens the threat of substitution against Intel.
This is a significant opportunity, considering the rapid growth of the mobile device market. Political ideology and political stability or instability strongly influence the pace and direction of the economic growth.
In addition, the moderate market growth rate imposes limits on the level of competition. As a result, the company can expect corresponding improvements in revenues from these markets.
As a result, they are more capable of purchasing computing devices with Intel processors. The changes are linked to the dynamic nature of the global market for semiconductors, particularly markets for computing system processors.
For example, Apple has the foundations necessary to develop advanced processors for non-Mac systems and capture a significant market share Read: This aspect of the Five Forces Analysis deals with the influence of buyers or consumers. This external factor imposes a strong force against Intel.
It is also recommended that Intel should continue its efforts to capture a dominant share of the smartphone processor market. The intensity of such threat is considered in this aspect of the Five Forces Analysis. The firms must focus on economic trends in segments that affect their industry.
These external factors are responsible for the condition of the competitive landscape. This external factor exerts a moderate force on firms like Intel.
For example, this ecological external factor discourages consumers from purchasing computers that use processors with low energy efficiency. For example, the company maintains significant control on its supply chain. Also, the company is in an industry position that empowers it to effectively exploit opportunities in its remote or macro-environment.
For instance, the company must highlight differentiation in developing products to ensure competitive advantage.
However, the rising complexity of waste disposal regulations around the world threatens the company because of their implications on how e-waste is addressed.
Advanced technologies are required Intel Advanced technologies make it difficult for new competitors to enter the market because they have to An improvement in overall competitive advantage enables the company to deal with competition and the threat of new entrants.
On the other hand, the relatively low performance-to-price ratio of substitutes exerts a weak force in the industry environment. Also, it is recommended that the company must find new alliances in addition to the one it already has with Microsoft.
Technological factors represent major opportunities and threats which must be taken into account while formulating strategies. This external factor exerts a moderate force on the company.
On the other hand, the moderate degree of brand differentiation strengthens new entrants to a limited extent. While competition and the threat of new entry are the forces with the highest intensities determined in this Five Forces analysis, Intel must develop strategies to remain resilient in the face of the other forces.
Facing tough competition, Intel must ensure its competitive advantage. As a leader in the semiconductor industry, Intel has the resources and capacity to withstand the possible threats from such external factors.Porter five forces analysis From Wikipedia, the free encyclopedia A graphical representation of Porter's Five Forces Porter five forces analysis is a framework for industry analysis and business strategy development.
It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and. Intel Corporation PESTEL/PESTLE Analysis & Recommendations. Porter’s Five Forces Analysis of Intel Corporation). This aspect of the PESTEL/PESTLE analysis of Intel shows growth opportunities in the remote or macro-environment of the semiconductor industry.
Analysis of Intel Corporation using the Porter’s 5 forces Model Intel Corp is an American company famed for making semiconductor chips, microprocessors, network interface controllers, flash memories, graphic chips and other components found in many computers and mobile phones.
The porter’s Five. The Five Forces Analysis was created by Harvard Professor Michael Porter in and it provides a framework for industry analysis and business development.
Porter proposes there to be five forces which either inhibit or prohibit a company’s. Intel’s Five Forces Analysis (Porter’s model) on competition, buyers, suppliers, substitutes, and new entry are shown in this processor business case study.
WikiWealth’s comprehensive five (5) forces analysis of intel includes bargaining power of supplies and customers; threat of substitutes, competitors, and rivals.Download