In the semiconductor industry case, the target market is mainly the electronics industry. The promising industry growth and the relatively stable exchange rates promises wealth for the Intel. The increased pace in the technological changes has spurred for the need for the more advanced and higher technology. However, owing to the fact that the demand for the semiconductor is higher than before, this has presented an opportunity for Intel to develop their products at the rate that will keep up with the market demand. The economic factors that affect the operations of Intel Corporation include GNP trends, inflation rate, money supply, and unemployment rate. Social- The main consumers for the Intel are the large companies.
Owing to the dynamic nature of the industry (where innovation and change are everyday words), there is need for Intel to constantly be sensitive to the market preferences and demands. Technological; technology is one of the main macro factors that affects the electronics industry. Fast technological transfer coupled with the increased technological obsolescence is the main characteristic of the industry that Intel operates in. However, the phenomenal increase in the industry productivity is the main driving force that has led to the semiconductor electronics the technology of the choice for the control and computing applications. Although there are signs of the improved consumer confidence and the economic recovery in U. S, the industry that Intel operates in is still faced with much uncertainty.
For instance, the labor market have been experiencing steady gains lately, but there is still a lot of improvements that needs to be done in the household power owing to the stagnant wages. one of the main economic environment affecting Intel is the greenhouse gases and the hazardous pollutants that are as a result of the computer-chip manufacturing.
This has negatively affected the reputation of the Intel. Intel Corporation has been struggling with the anemic sales growth for some period, based on the company’s latest quarterly report, it has dipped into the negative territory. The company’s sales have started to decline as shown by the 4.6% year-over-year decline as recently reported by the company. The electronics industry presents the potential risks for the investors that are unique from the other industries.
The variable costs that are associated with the production varies
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