Strategic Outline SIS INTEL Essay

Name: Lyka Dominguez Date: March 25, 2015

Case: Intel Corporation Strategic Issues Summary (SIS) External Environment
General External Environment Analysis:

Legal
1982 cross licensing agreements
Rules of competition in trademarks, patents
Intellectual property
Economic
Money Supply
Inflation rate
Global
Partnership with Japanese manufacturers
Licensing to Canadian company
Competition with British company—ARM holdings
Environmental
Arizona plant were not hitting benchmarks because of it’s drier air
Technological
Shifted focus to wireless mobile devices
Products and competitors advancements in R&D

Porter’s Five Force Analysis
Buyers
Consumers have no bargaining power in the past when Intel was the only producer of microprocessors but with the increase in competition has given consumers a choice and a more competitive price
Suppliers
Low bargaining power
Concentrated market gives more power to company
Substitutes
High substitute
Mobile devices and Tablets as new technology emerges
New Entrants
Barriers to entry is higher
High capital requirement
Strong brand loyalty
Economies of scale for brand leaders—Intel and AMD
Competitive Rivalry
Rivalry is the fierce competition among companies in an industry to gain a greater market share
Price Wars with rivals

Identify the Industry’s Driving Forces of Change (DFC)

Technological change
Management change
Innovation
Change in demand
Increased globalization

Internal Analysis

Key Factors of Success (KSF) in the Firm’s primary Industry?
Brand recognition
Superior R&D
Strong financials
Knowledgeable engineers
Innovative

Discuss the firm’s most important Resources and Capabilities that address the KSF’s.

a. Tangible Resources
Financial
Leading manufacturer of microprocessors in 2012
Reported revenues of $ 53 billion and net profits of $ 11 billion
80 % of sold PC used intel microprocessors
Physical
Patents for memory chips and microprocessors
16 High-tech manufacturing plants all over the world top of the line equipment
Human / Culture
Knowledgeable and well experienced management
Strict management style—Andrew Grove
Hardworking engineers
b. Intangible Resources
Innovation
Intel Inside marketing campaign
Microprocessors
Reputation
Leading company in manufacturing microprocessors
Third most valuable brand name on the planet
c. Capabilities / Value Chain
Operations
Complex manufacturing process
Low cost
Increasing output
Marketing and Sales
Intel inside Campaign
Human Resources
Promotions based on performance
Engineers have confidence in their work
Technology
New machines to manufacture processors—large wafers
Dehumidifiers

Does the firm possess any Distinct Competencies (DC), or a Sustainable Competitive
Advantage (SCA)? What are they?

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