Intel Corporation: SWOT & Situation Analysis





Intel Corporation is known as an American Multinational corporation which specializes in manufacturing high technical products and services. It is a technology organization whose headquarter is situated in Santa Clara, California. Intel was established by Robert Noyce and Gordon Moore. In this paper, we will study about the competitive position and capabilities of the market in meeting the different requirements of the market. External environment and SWOT analysis study enable us to know the features, and qualities of the organization to survive in the market on long term basis (Spoon, 2014). The organization is considered as a highest valued semiconductor chip manufacturers as per its revenue. It is considered as an inventor of the x86 series of microprocessors. The quality of products makes the organization different from the other existing organizations. Intel Corporation provides different processors for computer system producers like Lenovo, Dell, Apple and Hewlett-Packard. It is an organization which spent a huge amount of its revenue in conducting research and development activities. The high quality of research enables it to introduce innovativeness in its product. The organization was established in 1968. It deals with a range of products such as motherboard chipsets, flashes memories, embedded processors, network interface controllers, graphics chips, and other devices related to computing and communications.

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SWOT & Situation Analysis

SWOT analysis helps us in measuring the strengths, weaknesses, opportunities, and threats of the Intel organization. Effecting conduction of SWOT analysis helps the organization in determining appropriate strategy so that it can utilise its strengths in a right direction. Strengths and Weaknesses are considered internal to the organization, on the other hand, Opportunities and Threats are consider external to the organization. It is utilized by the business houses to analyze a changing environment and respond proactively.

SWOT Analysis


  • Intel is a well-known brand name and has strong brand loyalty in existing market.

  • Pioneer and dominant suppliers of microprocessors for personal computers.

  • World’s largest chip and semiconductor manufacturer, based on revenue (Fan, 2008).

  • Superior chip design which enables the organization to deal with growing edge mechanized capability.

  • Large market shares of the microprocessor.

  • Broad portfolio of high-quality technical products.

  • Utilization of advanced technology during a production of products such as composite and utility transmission line.

  • Core competency in developing differentiated products such as microprocessors.

  • Global Presence in countries like US, UK, and Germany.

  • Expansion of portfolio to include products with higher stiffness, and impact, improved wear and enhanced the appearance or low emissions (Annual Report, 2015) 


  • Utilization of Decisive strategies to defend its market position.

  • Poor decisive strategy lost its leading market position.

  • Faces a high financial loss during 2008 which bring a decline in its revenue level (Annual Report, 2015).

  • Failed to get the economies of scale in its existing market.

  • The absence of business in ultra-mobile processors market.

  • High capacity constraints due to labor disruption or production delays


  • Changes in preferences of customers bring opportunities to the organization to meet their demands with the changing products.

  • Growing demand for personal computers as well as innovative products such as laptops, and tablets.

  • Continuous development of technology provide opportunities to offer new and innovative products.


  • High-level completion between competitors of the industry.

  • Increasing volatility in prices and availability of raw materials has a significant negative impact on the financial margins.

  • Fluctuations in environmental regulations concerning climate change influence the profitability level

  • Presence of various unanticipated operational or commercialization difficulties such as the development of competing technologies

Impact of External marketing factors

External factors influencing Intel organization are following: 
Competition: Competitive strategy of Intel highly influenced by the economic conditions, size of market, its cost advantages and structure of the industry. High competition influences the profitability of the organization in high context and also decrease the sale of products in the potential market. Effective competitive strategy and high quality of product help the organization in facing the existing completion in an effective manner. If it is incapable of facing the completion, it will lose it overall existence in the market.
Economic: There are lots of economic factors which can influence the position of the organization in a significant manner. Some factors are following:
GNP Trends
Unemployment Rate
Money Supply
Rate of Inflation
Labor cost is considered the important reason for the organization to move its production plants to third world countries, even in an unstable economy the manufacturing cost of the organization becomes so low that it can enhance the profit level in an significantly compared to first world countries. Due to the reason Intel has spent a huge amount in Vietnam and China.
Competitive Analysis
Competitive analysis is considered as a process of recognizing the potential competitors and their strengths and weaknesses. It helps the organizations to develop product or services which are unique from their potential competitors. Competitive analysis of Intel is done in the following manner. 

Key Competitors

The close competitor of the organization in revenue and operating segments are IBM and NVidia. IBM is considered as the largest manufacturer of personal computer processors or advanced micro devices. On the other hand, NVidia is considered as the largest manufacturer of the system-on-a-chip unit or graphic processor.
In the manufacturing of DEG microprocessor, Microchip Technology is considered the closest competitor of the Intel Corporation. MCHP is especially dealing in manufacturing microcontrollers, and analogue and memory semiconductors (Fleisher, 2015).
In the manufacturing of motherboard, DEG chipset, Advanced Micro Devices is considered the potential competitor of Intel Corporation. it is the organization which competes with the Intel in several important markets. 
EMC Corporation is also considering a strong rival of Intel in producing data centre products. It is an information infrastructure organization which was acquired by Avago Technologies during 2014 ( It is mainly dealing in production of MIPS processor, NetApp, semiconductor and PMC-Sierra. 

Differentiating Factors

The technology utilizes by Intel for the production of innovative goods make it different from the other existing organizations. The following factors make it different from others:
Intel vPro™ technology helps the organization in efficient management of business user experiences and security in the desktop, notebook and various internet segments. It is mainly designed to provide businesses improved upgradeability, security, and energy-efficient performance while lowering the ownership cost of the organization. 
Utilisation of RealSense technology enables the organization to conduct depth analysis as an individual does (Annual Report, 2015).
Utilisation of True Key™ technology permits the organization to access devices through biometric technologies, and other facial recognition. 
Intel Quark Processor: It is specially designed with a combination of different applications and technologies, facilitates high quality of produced products (,).
Intel Atom Processor: Specially designed for mobility in tablets and smartphones. This will enhance the power-efficiency in micro servers.

Key Competitive Advantage

The below mentioned are some key advantages of Intel corporation:
Transitions to next-generation technologies: The organization is considered as a market leader in transitioning the next-generation process technology and producing a latest product by utilizing such technology. The products of the organization are mainly utilising 14 nm process technology in its existing market and it focuses more only on the development of next-generation 10nm process technology for its products (Annual Report, 2015). All these advancements in products facilitate the organization in different areas such as energy efficiency, cost, and performance features. 
Products are especially utilized to operate on multiple operating systems. High-level collaboration with its customers and third parties facilitate the organization in operating significantly on multiple operating systems and end-user platforms and products (
Alignment of its network of assembly and manufacturing with different test facilities. The organization spent a significant amount on conducting research and development activities, which facilitate the organization to have more control over its manufacturing processes, design, development and quality control of products ( 


  • Completion in the industry limits the potential return of the organization by placing a ceiling on the prices of products.

  • Demand for substitute products reduces the demand for organization products and services.

  • Lower the size of the market because the competitors of an organization also capture a part of the existing market.


  • With the high-level competition, the organization can significantly enhance its innovative thinking by which it can offer high innovative products to its customers (Grant, 2016).

  • High competition gives an opportunity to the organization to improve its quality of service. Competition enforces the organization to deliver efficient goods to its customer. This can be efficiently done by improving the quality of its existing services.


After studying all this, it can be said that innovativeness and high quality of existing products enable the organization to capture the large size of existing market. With the help of SWOT analysis, the organization can utilize its strengths in an efficient manner to capture the available market opportunities. Large focus on the quality of products also facilitates the organization in providing high-level customer satisfaction to its target customers. The organization should also focus more on an expansion of its business activity which can be efficiently done by enhancing its product portfolio.

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