SWOT Analysis of Intel Corporation

Intel Corporation is the largest semiconductor manufacturer in the world. It is an American global technology company founded in 1968 by Gordon E. Moore and Robert Noyce. The company’s product line includes network interface controllers, motherboard chipsets and integrated circuits,  flash memory, graphic chips, embedded processors and other devices related to communications and computing. The SWOT Analysis of Intel Corporation is given below:

 

Strengths

 

  1. Intel is globally recognized brand name and has strong brand loyalty.
  2. Intel was the dominant and pioneer supplier of microprocessors for PCs. It is still dominated by numerous memory devices.
  3. Intel is a global technology corporation and the world’s biggest semiconductor chip producer, based on revenue.
  4. Intel is the originator of the x86 series of microprocessors; the processors set up in most personal computers. 
  5. Intel presently has around 80% of the microprocessor market share while AMD has approximately 17%.
  6. Intel Corporation merges superior chip design ability with a leading-edge mechanized capability.
  7. Intel is listed at number 48 in 2010 standing of the world’s 100 most influential brands published by MBO. 
  8. In 1990s, Intel was one of the biggest and most successful companies in the world. Intel was the main and most beneficial hardware supplier to the PC business. 
  9. The operating profit of the Intel during fiscal year 2007 rose by 45.4% over 2006 and net profit increased by 38.3%.

 

 

Weaknesses

 

  1. Intel sometime used divisive strategies in defense of its market position against its competitors.
  2. After 2000, Intel’s leading position in its core business was greatly reduced.
  3. By the end of the 2006, Intel proclaimed a reform that resulted in the dismissal of 10,500 employees or near 10 percent of its labor force by July 2006.
  4. The company faced decreasing revenue in financial year 2008.
  5. Intel has not achieved economies of scale and economies of scope throughout the long history.
  6. Retail prices are higher as compared to the prices of competitors.
  7. Not presence in the ultra-mobile’s processors market.

 

 

Opportunities

 

  1. The company should be customer-oriented because customer preference changes after few months.
  2. Customers always look for new and updated products. 
  3. Product development and markets penetration in the existing markets is also a good opportunity. 
  4. Advancement in technology also provides the opportunity to offer new products.
  5. Intel is in the rapid changing industry; innovation is the only way to remain in the industry and to be leader.    
  6. Diversification in related and unrelated business such as: security devices, broadband, cellular industry, etc.
  7. Backward and forward integration may reduce the cost, improve the quality and service.
  8. Changing circumstances after economic slowdown or financial crises is also helpful for the company.

 

 

Threats

 

  1. Advancement in technology obsoletes the manufacturing facilities and products.
  2. The strong price war is going on between PC producers.
  3. Many competent PC makers are using inferior performance IC’S.
  4. Changing customer taste and preferences along with the reduction in brand loyalty is a major threat.
  5. Currency changeability in different countries create problem for the business of the company.
  6. Intel has strong competitors in the industry such as Dell, IBM, etc.
  7. The company is facing strong competition to sustain its market share. 
  8. Intel Corporation is facing strong political instability, regulation and tariffs in different countries.  

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