Intel's Technology and Operations

This assignment examines Intel's technology and operations, utilizing Porter's Five Forces framework to analyze the industry's competitive landscape. It explores Intel's product differentiation strategies, emphasizing the importance of specialization and technological advancements to maintain a competitive edge against rivals like AMD. The report concludes by highlighting key challenges and opportunities for Intel in the evolving semiconductor market.

Running head: TECHNOLOGY AND OPERATION
Technology and operation of Intel
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Industry analysis.........................................................................................................................2
Product differentiation and specialization..................................................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................5

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Introduction
Intel is an American multinational corporation and technology, which started its
journey since 1968 with its headquarters in Santa Clara, California. Intel is among the
world’s largest manufacturer of personal computer’s microprocessors along with the holder
of the x86-processor architecture parent. Intel also manufactures embedded processors,
SRAM, flash, DRAM along with integrated circuits, the network interface controllers, as well
as motherboard and graphics chipsets (Engel & Forster, 2014). In this report, the industry
analysis of Intel will be done along with its product differentiation and specialization.
Industry analysis
In this section, Porter’s five-factor analysis has been done on Intel cooperation so that
the industry’s evaluation is clearly understood.
 Threats to new entrants- the new entrants in this industry brings innovation, new
techniques of doing things and also puts pressure on Intel by minimizing pricing
strategy, lessening costs along with supplying new value propositions to their
consumers. Therefore, the threat is high as any other company can adopt these
strategies (Pisano, 2015).
 Bargaining power of suppliers- Suppliers in the ruling positions can minimize the
margins that Intel can gain in the market. However, it has been observed that the
powerful suppliers in this sector utilize their power of negotiation to obtain high
prices from the companies in this industry. Thus, overall it lessens the profitability of
Intel.
 Bargaining power of buyers- Buyers always wants to get the best by paying minimum
price possible. This pressurizes the profitability of Intel Corporation eventually.

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However, smaller and stronger customer base of Intel Corporation increases the
bargaining power of the consumers, which in turn increases the ability of the
consumers to seek for higher discounts and offers (Akhter, Rahman & Rahman,
2014).
 Threats of substitute products or services- For Intel this threat increases when it
provides a value proposition, which is solely different, the present offerings in the
industry. For instance, Dropbox and Google Drive are the replacements to storage
hardware drives and thus, can be threatening to Intel.
 Rivalry among the existing competitors- Intel Corporation functions in very
competitive industry. However, this competition does harm the comprehensive long-
term profitability of Intel. It has already defeated all other microprocessor developers
like Cyrix and NexGen, now Intel’s real competitors are from the developers of
Athlon, Thunderbird and the CPUs of Sledgehammer. Moreover, from the
Microprocessor SBU viewpoint there will be only one competitor who will stay in the
end: Advanced Micro Devices (Nihoul, 2014).
Product differentiation and specialization
The current products that Intel sells are Devices & Systems, Processors, Solid State
Drives, Chipsets, Boards & Kits, and Server Products, networking & Communications,
Wireless, Software & Services, Intel Gateways and FPGAs. However, AMD is very much
capable of following or improvising on maximum of the technologies given by Intel.
Therefore, without the existence of such technological obstructions, competition often
degenerate into price wars which in turn causes both the organizations to lose their profits?
However, Intel can avoid these expensive price wars if they differentiate their products
towards the particular orientations of the consumers. Moreover, it can be manifested by

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bundling the components into platforms as has been affluently done in the Centrino platform
along with developing technologies, which fits needs of a certain consumer group like the
vPro technology that increases security for businesses. However, unable to acquire the
dominance in the widespread markets, AMD is probable to concentrate attempts in the niche
market of graphic for the gaming machines. Therefore, Intel must try to keep up
technologically in the graphics end by associating with NVIDIA, as collapsing would
possibly allow AMD to inaugurate a reputation first in this elevated prestige market that can
multiply to other sectors as well. As the competition is rising due to affordable mobile
internet devices and classmate PC that are mainly targeted towards the users who are using
this for the first time therefore, the threat of competition is high for Intel because the potential
for development here is maximum. So now, Intel can plan a powerful foothold as soon as
possible by constantly improving their Atom processor and building strong bonds with the
manufacturers of these products. Moreover, they must pay more attention on developing
energy-efficient performance technology and thus, differentiate their products by bundling as
well as specialization (Inoue & Ikawa, 2012).
Conclusion
Thus, from this report it can be concluded that Intel is among the world’s largest
semiconductor manufacturing company. In the industry analysis, Porter’s five-factor analysis
has been done to observe that the strongest among the forces are competitive rivalry and the
threat of new entrants. Lastly, Intel’s product differentiation and specialization has been
discussed which stated that they must keep up technologically in the graphics end by
associating with NVIDIA.

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References
Akhter, S., Rahman, N., & Rahman, M. N. (2014). Competitive strategies in the computer
industry. International Journal of Technology Diffusion (IJTD), 5(1), 73-88.
Engel, J. S., & Forster, F. (2014). USA: Silicon Valley, the archetypal Cluster of Innovation.
Northampton, MA: Edward Elgar Publishing.
Inoue, K., & Ikawa, Y. (2012, July). Sourcing Intelligence: The third intelligence for
corporate strategy in the horizontal specialization era. In Technology Management for
Emerging Technologies (PICMET), 2012 Proceedings of PICMET'12:(pp. 139-146).
IEEE.
Nihoul, P. (2014). The ruling of the General Court in Intel: towards the end of an effect-based
approach in European competition law?. Journal of European Competition Law &
Practice, 5(8), 521-530.
Pisano, G. P. (2015). You need an innovation strategy. Harvard Business Review, 93(6), 44-
54.