The Best INTEL Desktop for Computer Laboratories of NVSU

By:
Cadiz, Glaiza Faye
Dulnuan, Dhanne Mark
Dulnuan, Krizelle Joy B.
Martinez, Nholan
Tadeo, Jay-cee

May 2019
 INTRODUCTION
Intel Corporation is the biggest semiconductor manufacturer in the world and has changed
the global marketplace eventually since it was founded in 1968. The first handheld calculators and
personal computers were developed through the innovation of Intel’s microprocessors. In the early
70’s, there was a competition from Japanese semiconductor manufacturers, this had dramatically
reduced the profitability of the market and this event made Intel to shift to company’s focus to
microprocessors. Intel has been the primary hardware supplier to the PC industry, supplying
microprocessor to IBM. Today, at least 80% of the Intel’s processors are used in personal
computers globally. Their product line includes the following: chipsets, motherboard, flash
memory used in wireless communications, networking devices, laser printers, and industrial
machinery and cellular phone base stations. Intel has become one of the world’s most recognizable
computer brands following its long running Intel inside campaign which was started in in 1991
and was created by Intel marketing manager Dennis Carter. It distinguished itself from a
commodity like position and established itself as the brain of the computer industry. The Intel
inside advertising campaign sought public brand loyalty and awareness of Intel processors in
consumer computers.

As time passes by, Intel focuses on improving and upgrading its processors for better
performance, security, manageability, connectivity, configurability, reusability, efficiency and
compatibility. By specializing and focusing in niche market, Intel was able to not only stand out
from the crowd but to become the market leader in the industry. Intel maintain its strong market
position in the semiconductor industry which enhances its image. However, intense competition
in all its market segments reduce the company’s market share and profitability considering many
competitors in the marketplace. Nevertheless, it is able to leverage its manufacturing capability
meaning it can increase production to bring product to market in large volumes. It has a regular
cadence to the development of new products or improvements to existing ones which will be an
advantage to students in a university and employees. Despite being in a competitive industry, Intel
faces attention threats from other companies who imitates its innovative products and affected
Intel’s future revenue but they managed to rise up because of better and upgraded products and
having consistency in innovation. Lastly, Intel’s business strategy relied on making newer
microprocessors dramatically faster than the previous ones to entice buyers to upgrade their
personal computers.
 The eventual goal if Intel is to design a chip that would fit into the next generation of mobile
devices and smart phones including innovation and modernization of product. It develops
technologies, products and initiatives to continually advance how the people work and live.
Eventually, Intel has its strengths, weaknesses, opportunities and threats.

STRENGHTS

 Intel is a globally recognized brand name and has strong brand loyalty from its
consumers.
 Intel was the pioneer in microprocessors for PCs and memory devices.
 Intel is a global technology corporation and the world’s largest producer of
semiconductor chip based on revenue.
 Intel presently has around 80% of the microprocessor market share whereas AMD has ro
ughly 17% of the market.
 Intel distinguished itself from a ‘commodity’ like position and established
itself as the ‘brains’ of the computer industry.

WEAKNESSES

 Intel has been accused of using divisive strategies in defense of its market position agains
t its competitors.
 Intel had uses its market dominance to unfairly stifle competition.
 Since 2000, Intel could not maintain the position as the dominant supplier of
microprocessor in the industry.
 By the end of the 2006, Intel restructured the company and resulted in the dismissal of 10
,500employees.
 The company faced decreasing revenue in financial year 2008.
 Retail prices are higher compared to competitors.

OPPURTUNITIES

 Product development and markets penetration in the existing markets is also a good oppo
rtunity.
 Advancement in technology also provides the opportunity to offer new products.
  Offering more diversification with their products in related and unrelated business
such as: security devices, broadband and cellular industry.
 Backward and forward integration may reduce the cost, improve the quality and service.

THREATS

 Advancement in technology obsoletes the manufacturing facilities and products.

 The strong price war is going on between PC producers.
 Many competent PC makers are using inferior performance IC’S.
 Changing customer taste and preferences along with the reduction in brand loyalty is a
major threat.
 Currency changeability in different countries create problem for the business of the
company.
 The company is facing strong competition to sustain its market share.
 Intel Corporation is facing strong political instability, regulation and tariffs in different
countries.
 Product specialization of Intel can become a big threat. Having a limited product line
 Intel runs the riskof being forced out of the market by a better product.
 The fast development of cell phones and other mobile gadgets can perform the same tasks
as PCs and is having a major negative impact on the PCs market.

Intel has also been making moves into the graphics chip business. Some of the decision
criteria and key success factors for Intel are the following:

Management
 Intel placed top priority on their people, and encouraged openness, fairness, and responsi
bility, Intelwas able to take full advantage of its workers.
Mistakes
 The most talented and brightest people that were employed were given leverage when mi
stakes weremade so that they would be encouraged to develop
breakthrough technologies.
 Hard Work
 Moore and Noyce refused to shy away from their inexperience and being willing to do
what work theyneeded. Also admitting their limitations, they were able to seek out
qualified employees to help build thecompany.
Competition
 They learned that the key to entrepreneurial success was by being in a
constant state of awareness and fear of your competitors, entrepreneurs can become
proactive instead of reactive, seizing new opportunities as they present themselves
instead of letting them pass them by.
Exclusivity
 By specializing and focusing on a niche market, Intel was able to not only stand out from
the crowd but to become the market leader in the industry.

Social Cultural

 Social values like demographic factors such as population, age distribution, literacy level,
migration, ruralurban mobility or cultural factors like social attitudes, customs, beliefs, ri
tuals influencebusiness practices. Intel has invested heavily in China and Vietnam; both c
ountries have a very high literacyrate and a large workforce. The high unemployment rate
for educated worker offers Intel a cheap and reliable workforce.

Technology

 Technological factors offer great opportunities but also threats and must be taken into acc
ount when formulating strategies. Any technological breakthroughs can influence the
company’s products services, markets, distributors, marketing practices and competitive
position.It can also open up newmarkets, change the relative position of an industry and r
ender existing products and services obsolete.

Environment

 With the focus on environment conservation major industries have the social responsibilit
y to becomemore environmentally friendly especially with their wastage and CO2 emissi
 ons generated by theirmanufacturing plants. Intel’s goal is to reduceglobal computer CO2
emissions by 54 million tons per year,equivalent to the annual output of 11 million cars.

Legal

 The rules of competition, trade mark rights and patents, price controls and product quality
laws have become important as industries become more globalized.

Recommendation (pang huli)

Advertising Strategy

Joint advertising with corporate giants like Microsoft, Oracle and EA games could
benefit Intel computers and giving reimbursement on advertising done by companies using
Intel products that would motivate more exposure for Intel.

Pricing Strategy

If Intel reduces the price on chipsets it might face a profit loss but putting a massive mark
up on compatible upgrades may recoup the market share. Pricing seems to be the necessary
measure, but unsold inventory that is forced on the market may flood the retail market and
cause a further plunge in prices. Reducing the price of Intel’s older generation products can
boosts sales dramatically.

Content and Promotional Strategy

Content strategy and content collaboration are growing challenges. In today’s web-
oritented world, the number of marketing channels has explode. Companies are faced with
massive content marking requirements today. Intel should invest more into these channels
especially blog post, facebook, twitter, IG, and youtube. If Intel uses a per hit system where
bloggers can get a percentage based on web hits it could reach more people globally and far
more important blogs would have been done in that countries native language. Video
advertising could have a greater impact and more people could be reached through youtube.
Therefore, every aspect of the internet is a potential market for Intel.