Technology and Operation of Intel-Free-Samples for Students

Question: Analyse and discuss the innovation technology Management initiatives in Intel Company. Answer: 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 worlds largest manufacturer of personal computers 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 motherboardand 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, Porters five-factor analysis has been done on Intel cooperation so that the industrys 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. 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 Intels 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 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 worlds largest semiconductor manufacturing company. In the industry analysis, Porters five-factor analysis has been done to observe that the strongest among the forces are competitive rivalry and the threat of new entrants. Lastly, Intels product differentiation and specialization has been discussed which stated that they must keep up technologically in the graphics end by associating with NVIDIA. 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. InTechnology 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.