Analyzing Intel Ireland's Strategic Position and Competition

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This report presents a preliminary strategic analysis of Intel Ireland, examining its competitive position within the international business landscape. It identifies key competitors like AMD, Microchip Technology, and EMC Corporation, analyzing their strategies and Intel's strengths and weaknesses. The analysis uses Porter's Five Forces model to assess the intensity of competitive rivalry, buyer power, supplier power, the threat of substitutes, and the threat of new entrants. The report also discusses changes in the business environment, including technological advancements, data security concerns, and increased competition in the IT sector. It concludes by evaluating Intel's prospects for achieving its objectives, the quality of its marketing, production, and personnel functions, and its financial performance. Desklib provides access to this and other solved assignments for students.
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RUNNING HEAD: Preliminary Strategic Analysis along
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Name of the student-
Topic- Preliminary Strategic Analysis along
University-
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Table of Contents
Introduction...........................................................................................................................................3
Description of company.....................................................................................................................3
Preliminary Strategic Analysis..............................................................................................................3
Competitors of the Intel Ireland Company in the strongest and weakest position..............................3
Strategies move taken or to be taken by Rivals.....................................................................................4
Factors Underpin competitive success...................................................................................................5
Factors developed by the Intel Ireland..................................................................................................5
Industry dominant economic features....................................................................................................6
Competition faced by Intel Ireland........................................................................................................6
The strength of each of the five competitive forces using Porter’s Model............................................6
Changes arising in the business environment and identify the causes...................................................8
Attractive is the Industry in which the company operates...................................................................10
Prospects that the company will achieve its purpose...........................................................................10
Quality of the marketing, production and personnel function in the company.....................................11
Company achieving satisfactory financial results................................................................................11
Conclusion...........................................................................................................................................12
References...........................................................................................................................................13
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Introduction
With the increasing ramified economic changes and complex business factors, each
and every organization needs to use Preliminary Strategic Analysis to run the business
effectively. There are several internal and external factors which impact the business
functioning and strategic planning of the organization. In this report, Intel Ireland has been
taken into consideration.
Description of company
It is the international technologies company which is indulged in microprocessor
business. It designs and builds the essential technologies that serve as the foundation for the
world's computing devices. With the changes in technologies, Intel has built various
advanced technologies and machines for the betterment of the society at large.
Preliminary Strategic Analysis
There are several preliminary Strategic Analyses which are used to assess all the
present and future business factors and rival’s strategic plans of the organization 1
Competitors of the Intel Ireland Company in the strongest and weakest position
Intel Ireland is primarily indulged in semiconductor chip maker business and falls in
the six distinct operations segments with one competitor in each segment.
In the personal computer segment, the most significant rivals are computer processer
manufacturer Advanced Micro Devices, American multinational companies such as IBM,
Nvidia, and Microsoft. 2
1 S., Moskowitz, Cybercrime, and Business: Strategies for Global Corporate Security.
Butterworth-Heinemann/., 2017
2 , N., Good, E.M., Ceseña, P., A., Mancarella, Monti, Pesch, D. and K.A.,Ellis, Barriers,
Challenges, and Recommendations Related to Development of Energy Positive
Neighborhoods and Smart Energy Districts. In Energy Positive Neighborhoods and Smart
Energy Districts (pp. 251-274), 2017
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In the DEG microprocessor segment, Intel Ireland is highly dominated by the current
offering of its major competitors such as Microchip Technology (MCHP). It is the American
manufactures that offer highly advanced technologies products and services at least price.
The Data center group segment, the primary competitor of Intel Ireland is EMC Corporation
which follows product differentiation strategy in the market 3
In Flash memory segment, Intel Ireland, the Boise, Idaho based semiconductor
manufacturers are the strongest competitors who are giving tough competition.
The strongest position of the Intel Ireland is in the microprocessor chip production. It has
been providing highly advance chip processor which is used by the highly advance
organizations in their computer systems.
The weakest position of the Intel Ireland is in Flash memory segment which shows that
company needs to improve its existing business functioning by creating the core
competency in the development of the safest Flash memories for clients 4
Strategies move taken or to be taken by Rivals
There are several strategies which have been used by the rivals such as Nvidia, Microsoft,
Edware, Verisign, Red Had Inc and Unisyc Corp and EMC to attract clients. Microsoft has
used product differentiation strategy to win over the market. It has improved its research and
development department to consistently make the development of its advance technologies
with the changes in the tech- generation needs in the economy. Versigin used the strategic
planning to enter into strategic alliance with the retail stores to increase its overall turnover.
In addition to this, Unisyc Corp followed the online promotional plan by using the cyber
computing enterprises resources planning methods. Nonetheless. Microsoft used price
3 D. Dempsey, and F., Kelliher, Industry Trends in Cloud Computing:
Alternative Business-to-business Revenue Models. Springer, 2017.
4 M., Papert, A. Pflaum, and A., Leischnig, 2017. A Business Process Perspective on IoT
Implementation: Findings from a Comparative Case Analysis.
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skimming strategy planning to win over the market and moved towards the advance
technologies and parts used in its current offering 5
Factors Underpin competitive success
There are several factors such as market growth, advancement in the technologies, experts
employee hiring, and research and development department of Intel Ireland. The main
competitive advantage of the Intel is based on the use of advance technologies and machines
in its current offering. Intel focuses on the anti-virus software program which assists the
company to attract more clients in Ireland and international level and increases the overall
market share6
Factors developed by the Intel Ireland
The main factor which has been developed by Intel Ireland is based on its pricing
methods. Intel Ireland offers all of its advance products and services at very least cost which
may be hard for other rivals to follow in the market. However, in order to keep the price of
its software’s and other programs on an international level, company keeps the cost of its
software's low and follows double taxation avoidance treaty and lower traits program with
countries 7
5 Y. Diao, and K.K., Bhattacharya, International Business Machines Corp,. Estimating
value of information technology service management based on process complexity
analysis. U.S. Patent 9,600,784., 2017
6 M.,. O'Driscoll, Ireland, West Germany and the New Europe, 1949-1973:
Best Friend and Ally?. Oxford University Press, 2018
7 M, O'Driscoll, Ireland, West Germany and the New Europe, 1949-1973: Best Friend
and Ally?. Oxford University Press, 2018
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Industry dominant economic features
The economic network of the Intel Company is spread across the cities like Taiwan,
China inclusive of Hong Kong and the United States. When compared to its competitors the
revenue of the Intel took a jump in the year 2017 by 4.15% year after year. The company's
priorities were the growth areas and data center was in the first stage. The biggest revenue
was accorded by the PC division. It is considered as the bedrock for the company. Thought
the size is reducing to flat but Intel has recorded more than the profitability could be in
terms of its competitors. Moreover, Intel is versatile in other sectors like which are different
from the existing PC structure.
Competition faced by Intel Ireland
With the changes in economic and clients choices, Nvidia, Microsoft, Edware, Versigin,
Red Had Inc and Unisyc Corp and EMC are coming up with the advance technologies
development in their current offering. Product life cycle introduction program is ideally used
by these companies in Ireland to increase the sales of their overall products. The main
competition is faced by Intel Ireland is based on the product differentiation and cost
leadership program. Each and every company has been focusing on selling advance tech
products and software’s at very least price to attract more clients. It may result to decrease in
the overall market share of company 8
The strength of each of the five competitive forces using Porter’s
Model
The portal five forces model helps to identify all the external factors which may impact the
business functioning of Intel Ireland Corporation.
Portal’s five forces Description Strength
8 D. Dempsey, and F, Kelliher, Industry Trends in Cloud Computing: Alternative
Business-to-business Revenue Models. Springer., 2017
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Preliminary Strategic Analysis along
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Buyer’s power There are several
competitors who have
focused to offer advanced
technologies and software's
to clients at least price. Intel
needs to keeps the price of
its offering low if it wants to
grab more market share9
The buyer’s power is high
in the market.
Supplier’s power Intel Corporation has set
strategic alliance with the
suppliers. In addition to this,
it could also use forward
integration and backward
integration due to its
advance research and
development department 10
The supplier’s power is low
in the domestic market of
Ireland.
Rival’s offering There are several rivals such
as Nvidia, Microsoft,
Edware, Versigin, Red Had
Inc and Unisyc Corp and
EMC who are offering
The rival's offering in the
domestic and international
market is quite high may be
a negative indicator for the
9 S.R.,. Elefant, Comparative Analysis of Healthcare Innovation in Israel,
Ireland, and Switzerland: A Systematic Literature Review (Doctoral
dissertation, Central Michigan University), 2017
10 J., Stewart, MNE tax strategies and Ireland. critical perspectives on international
business, 2017
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advance technologies,
machines and software are
to attract more clients in the
market.
Intel.
The threat of new
Substitutes
There are several
substitutes' products such as
the computer is being
replaced by the laptops and
mini systems. Play station is
being replaced by X-Box
and other I-Pad devices 11
The threat of new
substitutes is quite high.
The threat of new rivals The new entrants in the IT
market may face difficulty
due to the high fixed
investment in research and
development department.
However, an entrepreneur
with the innovative
technologies could
dominate the existing
market 12
The threats of new rivals are
average.
Changes arising in the business environment and identify the causes
There are several changes in the business environment which are given as below.
11 K. Mamonov, and D., Prunenko, Study of information security in the system of information
and analytical support of formation and use of intelligent capital of construction
enterprises. Technology audit and production reserves, 5(5 (37)), pp.34-38, 2017
12
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Preliminary Strategic Analysis along
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Changes in the business environment Identify the causes
Advancement of the technologies and
system devices 13
Need of people and their inclination towards
the high technologies devices and system.
High data security program features With the high-security issues and malware
attacks of the ill-intentioned people, the
personal information of the client is being
used by them for their personal benefits. It
causes losses to clients in monetary and
personal terms14
Increased completion in the IT sectors IT sector offers high profitability which
attracts new entrants and well-established
business organization to diversify their
business in IT business 15
13 E.N. Malyuga, and S.N.,. Orlova, Linguistic Pragmatics of Intercultural
Professional and Business Communication. Springer, 2017
14 , A., Bohne Decision-Making and the Internet of Things: Influences and
Impacts on Business Decisions and Supply Chains., 2017
15 M., Dobski, G., Frankowski, Meyer, M. and Pilc, M., MiƂostan, September.
Security Monitoring and Analytics in the Context of HPC Processing Model.
In International Conference on Parallel Processing and Applied
Mathematics(pp. 406-416). Springer, Cham, 2017,
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Attractive is the Industry in which the company operates
Intel has started Data Centre Group (DCG), which is considered the most important business
of Intel over a long term. It is large and very profitable having a long-term growth prospect
for the company 16Although Intel is primarily the specialist of processor manufacturing, it is
working on DCG with the same interest because this is showing a remarkable share of the
company's revenue. This is completely different from the existing type of business Intel
working on but being a new product available with the high technology used by the
company, this has created huge attraction of the customers for new products of DCG
Prospects that the company will achieve its purpose
With a successful opening of the year, Intel has shown a total growth of 4.1% in the
quarterly revenue rose to 17.05 billion from 16.37 billion. This makes a rise of 75 cents per
share new the last year. The company has decided to achieve a total growth of 20% by the
end of this year. In the mid of 2015 company had acquired Altera a new programmable logic
specialist for $16.7 billion, the company has planned to strengthen the Altera's core
programmable business by building future chips for Altera using the Intel's new technology
of chip manufacturing. This could be the major factor in the company's market share
growth. In the same direction, company has also decided to integrate the Altera's existing
FPGA technology by replacing its processor with the new one manufactured by the Intel
itself. This strategy aims at both the Internet of Things and Server market to achieve its goal
by the end of this year17
16 A., Bohne, Decision-Making and the Internet of Things: Influences and Impacts on
Business Decisions and Supply Chains., 2017
17 L Bengtsson,. and, S., Tavassoli The Role of Business Model Innovation for Product
Innovation Performance (No. 2018/4). Lund University, CIRCLE-Center for Innovation,
Research and Competences in the Learning Economy, 2018.
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Quality of the marketing, production and personnel function in the company
There are certain segments which Intel is approaching to explore its growth and opportunity
rate like two in one gaming concept. The company is having a bullish thought of data and
cloud computing concept. There are a virtual expansion and growth in analytics which the
company is focusing on.
Coming to the research department of the Intel Research, it adopted an open collaborative
research model. In this model, the researchers function directly with expert professors and
can share their ideas and knowledge freely. The contract was a combined reject of which is
owned jointly by the Intellectual Property and host university. Labs are provided to the
personnel management and research and development department to avoid any further
conflict and misunderstandings. Further, Intel refocused its efforts on commitments
regarding 5g concept which a profitable segment for the company's overall growth. The
department is focusing on the penetration method and believes in carving an opportunity and
connect with the end to end customers. The research department also focuses on the areas
which do not core to the Intel's business. The ubiquitous networking and sensor computing
created a platform for the Intel users to elevate the demand 18
The personnel department of the Intel is widely scattered at different levels and stages. Each
stage is following a hierarchy from the corporate level to the functional level of
management. The employees are focusing the mobility which is a critical concept for the
Intel's growth. The employees are functioning in various projects and enhancing skills
through training and seminars to deliver the best possible services 19
18 S.,. Moskowitz, Cybercrime, and Business: Strategies for Global Corporate Security.
Butterworth-Heinemann/., 2017
19 L Bengtsson,. and, S., Tavassoli The Role of Business Model Innovation for Product
Innovation Performance (No. 2018/4). Lund University, CIRCLE-Center for Innovation,
Research and Competences in the Learning Economy, 2018.
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Company achieving satisfactory financial results
The company has increased its overall revenue by average 22% since last five year which
reflects the positive indicators for the business development of the company on the
international level. Another source of high revenue of the company is its Data Centre Group
(DCG), which is considered the most important business over the long term, for the overall
revenue growth of the company. Therefore company decided to build out a portfolio of new
products aimed at the customers of Data Centre Group.
Conclusion
The manpower is reallocating and resources are pushed into potential areas by the
employees. This enables the employees to create a sense of competition among them and
new ideas are discussed among the co-employees to choose the best strategy that will fit
with company's resources and requirements. Now in the end, it could be inferred that
company has improved its business with the drastic rate. However, in order to give tough
completion to other rivals, it needs to consistently increase he overall technological
advancement in its research and development department.
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