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Strategic Management

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Manufactures computer chips, semiconductors motherboards, network interface controllers, flash memories, embedded processors and integrated circuits for information technology appliances. The information technology industry has grown phenomenally since the start of the new millennium. The last five years or so have experienced growth in smart technology appliances like smart phones, iPods and many others. The opportunities in the information technology industry have been immense. As a result, many firms have entered into the business to cash on the technology boom. Intel Corporation now has a number of competitors who have joined in the industry and the business will have to evaluate its strategy in order to compete favourably in the end.

To evaluate Intel, a number of analyses will be done to inform management and the public on the best strategy. The analysis of Intel Corporation using porter’s five forces model will evaluate the business’s strengths and weaknesses by evaluating the competition rivalry between players in the information technology industry, the power of suppliers and buyers, threat from new entrants and the threat from substitutes. Intel Corporation is influenced more by the power of suppliers; Intel uses a commonly available commodity called silicon.

Suppliers of this commodity cannot change prices because Intel Corporation can get it from several other suppliers. Other materials used in packaging of manufactured processors are also easily available. There is a close link between the equipment quality and productivity. Supplier power is high in equipment and parts manufacturer, research institutions, raw materials, engineering companies and IT vendors.        Competition rivalry is a force that influences Intel Corporation’s business. The corporation has been enjoying a big market share for some time.

as at 2011, the corporation commanded 79.3% in PC processors market and 84.4% in microprocessors for mobile PCs. the main rivals for Intel corporation include IBM, Motorola, Hitachi, Fujitsu, NEC, AMD among others. Competition rivalry is very high due to technological innovations and advancements. Intel Corporation has to be ahead of its competitors in technological innovations in order to survive in the industry. The bargaining power of buyer is very high because many buyers are price and quality sensitive. The switching costs are also low because customers can always go for competitor’s products with easy.

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preview essay on Strategic Management
  • Pages: 8 (2000 words)
  • Document Type: Essay
  • Subject: Management
  • Level: Undergraduate
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