Intel SWOT & PESTLE Analysis

ID : 52264253| Nov 2020| 18 pages

COMPANY PROFILE -Intel

Business Sector :Information Technology, Semiconductors

Operating Geography :United States, North America

About Intel :

Intel Corporation in is an American multinational having its headquarters in Santa Clara, California. It was founded by Robert Noyce and Gordon Moore in July 1968. As of 2020, Intel is the world's second largest chip maker & microprocessor making company based on revenue, after Samsung out ranked it since 2017. It is the manufacturer of the X86 series of chips and is a prime supplier for many computer system manufacturers like Apple, Lenovo, Dell and others. Apart from the manufacture of microprocessors it also manufactures motherboard chipsets, embedded processors and graphics chipsets.
Intel's business model is segmented mainly into PC centric business and data-centric business. The PC centric business Client Computing Group, while the data-centric group comprises the Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and all other businesses. Intel offers a broad array of technologies and products that are used as integrated solutions for a broad spectrum of markets. The company is addressing the needs of the data-centric world by providing end-to-end solutions based on technologies like edge computing, 5G network, the cloud, and the emerging fields of AI and autonomous driving. Intel's business strategy revolves around the following 5 strategic priorities viz., to make the world's best semiconductors, lead the technology revolutions, be a leading provider of an end-to-end platform for the ever-increasing data pile, be focused on operational excellence and efficiency and last but not the least, strengthen the employee base.
Intel's USP or Unique Selling Proposition sprawls in being the world's second-largest semiconductor chip manufacturer based on revenue, a world leader in designing and manufacturing quintessential products and technologies and being the originator of the x86 series of microprocessors, the processors spotted in most personal computers (PCs). Intel Corporation's mission is " to create world changing technology that enriches the lives of every person on earth.." Intel's vision statement reads "If it is smart and connected, it is best with Intel."

Intel Revenue :

USD $ 71,965 million– FY ending 28th Dec 2019 (YoY growth of 2%)
USD $ 70,848 million – FY ending 29th Dec 2018

Competitive Analysis of Intel

SWOT

PESTLE

Intel is transforming from a PC Centric company to a data-centric company by providing workload-optimized solutions to a broad set of customers in order to move and store their surmounting data. For this purpose, the company is hugely investing in data-driven technologies like Artificial Intelligence, IoT, a transition to 5G, and autonomous driving. In 2019, 48% of the total revenue was generated by the data-centric business. To further enhance this opportunity, Intel has invested $13.4 billion in the R&D process of the same. Thus SWOT is a simple tool to analyze more such strategic initiatives taken up by the company in order to attain a competitive advantage over its peers. Moreover, the SWOT analysis is essential to identify the internal strengths and external opportunities that lead to the fullness of the company. The analysis also presents information on the weaknesses and threats to the company that can limit its growth and market share.
Intel is a titan of the global Information and Technology industry due to its intrinsic strengths like market leadership, brand image and value, firm focus on R&D, largest market share in the chip manufacturing sector, extensive product portfolio, compelling acquisitions and mergers, focus on innovation, strong foothold worldwide, etc. Despite all the greatest strengths, Intel suffers from inherent weaknesses like lack of diversification, high dependence on computer brands, major revenue generated from confined market, insignificant presence in the mobile market, lack of self-branded PCs and mobiles. Diversification, acquisitions, digitization, etc. create new channels for revenue source and enormous growth opportunity for Intel. For a whopping 25 years, Intel had been the world's largest semiconductor company until Samsung dethroned Intel and became the world's biggest chipmaker since 2017. Certainly, the Information & Technology industry is relentless and highly competitive. Intel faces huge threats from competitors such as Advanced Micro Devices, Inc. (AMD), NVIDIA Corporation (NVIDIA), and new entrants providing customized solutions, cloud service providers and others.
The SWOT analysis for Intel is presented below in a matrix:

Strengths	Weaknesses
1. Monopoly and strong competitive presence in the microprocessor industry 2. Relentless focus on operational excellence and efficiency 3. Enjoying the first mover advantage 4. Offering a broad product portfolio 5. Leveraging economies of scale 6. Strong Brand Loyalty	1. Unable to tap the smart phone market 2. Dependent on large revenue from a single segment
Opportunities	Threats
1. The rise of Internet of Things (IoT) 2. Progression towards artificial intelligence 3. Increasing potential of data	1. Increase in competition in both microprocessors and semiconductor industry 2. Volatile nature of Microprocessors market 3. Product specialization remains a big threat

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Detailed SWOT Analysis of Intel

Strength

1. Monopoly and strong competitive presence in microprocessors industry: Intel has long acted as a market leader when it comes to the integrated design and manufacturing of microprocessors for servers and PCs. With devices now becoming increasingly inter-connected, Intel has set itself the goal of developing the most energy-efficient silicon solution for such devices. The company uses Intel server chips for storing, analyzing and accessing information in data centers used by a variety of front-end devices. It launched its Hybrid CPUs range in 2020 which is the first to use the 10nm chips that are based on Foveros technology. This new technology is expected to give Intel an advantage over ARM and AMD. Being the largest player in the market it creates a huge entry barrier for new competitors. Intel enjoys what Warren Buffet coined as an “Economic Moat”.

2. Relentless focus on operational excellence and efficiency: Intel is in the process of becoming a data-centric company by paying greater attention to operational excellence and efficiency. The company has reduced investments and activities with lower levels of growth and has also achieved the simplification and automation of several daily processes and activities. These steps are also duplicated for its product design processes, where the company is constantly seeking ways to develop simpler designs that are more efficient and which lead to better quality. The company is thus able to achieve scale in its core operations. This helps in creating a stable and cost-effective platform for the developing, designing and delivering new products. The operational excellence thus achieved assists Intel in funding the expansion of its TAM through big-bet investments.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threat

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The semiconductor industry is expected to observe a y-o-y growth of 5.9% in 2020 compared to that of the previous year. This growth is governed by the following technological trends:
- High demand for Data-Centric infrastructure
- Emerging fields of Artificial Intelligence
- The transition of the network (5G network)
- Edge and Cloud computing
- Internet Of Things is a driving force to global digital transformation
- Autonomous driving
Consequently, Intel’s PESTLE analysis illustrates all the pertinent external factors, influencers, and current trends that have a huge impact on the IT & Semiconductor industry and precisely on Intel Corporation. The PESTLE analysis helps to understand influencers like political, economic, social, technological, legal and environmental that impact Intel's business model, growth trajectory, business case, and market strategy.
The US has imposed restrictions on the export of US-regulated products and technology to Chinese companies, bases on allegations of data theft, which includes some of Intel's customers. Thus, political turmoil between US-China and their trade wars have a significant impact on Intel's business. Being a mammoth of the IT industry, Intel is subjected to legal issues like Intellectual Property Rights, Software licensing, Copyrights, Trademarks, the safety of users confidential information and IP protection. Key macro-economic factors that affect Intel's liquidity and cash flows are fluctuations in global economic conditions, currency exchange rates, tax rates, interest rates, inflation rates, commodity prices, and equity prices. Intel’s social impact initiative- Intel Innovation Generation focuses on empowering the next generation by allowing them to leverage their technical skills and experiences. Its purpose is to "inspire and empower young people around the world through technology, closing the global youth skills gap and ensuring that the next generation of innovators is empowered, more diverse and inclusive." There are tremendous benefits available through technology for both business and society but not at the cost of a negative impact on the environment. Thus, Intel focuses on being a leader in environmental sustainability, in the last two decades Intel's sustainable water management resources have helped it to preserve billions of gallons of water. Also, the company endeavors to continuously improve energy efficiency, reduce emissions and save resources throughout its operations.
Find below the PESTLE analysis of Intel, presented in a MATRIX:

Political	Economical
1. Government regulation over monopoly and competition 2. The newfound interest in the public sector towards Big Data	1. Developed economies of the target market 2. Economic nature of microchip industry 3. Increasing labor cost and trade war impact
Social	Technological
1. Improvement in the global socio-economic conditions 2. Digitally enabled global environment	1. The rise of Structured and Unstructured data over the past few years 2. Increased requirement of fast storage and processing 3. Internet of Things (IoT) driving global digital transformation
Legal	Environmental
1. Increased regulation over patents and trademark rights 2. The increased focus on rule of competition	1. Combating the increase in E-waste 2. Reducing operational impact on climate and energy 3. Increase in environmental concern over hazardous emissions

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SWOT & PESTLE (combined)
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Detailed Pestle Analysis of Intel

Political

This section is available only in the 'Complete Report' on purchase.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

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Technological

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Legal

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Environmental

1. Combating the increase in E-waste: Developed and developing countries are having to battle with a new form of waste which is electronic waste. Processors have a tendency of becoming obsolete very fast which results in large amounts of waste which leach out toxic pollutants like lead, mercury, and cadmium. Developing countries especially are seen to lack the necessary infrastructure to manage this e-waste. This has led to Intel and other manufacturers to initiate recycling programs which help in the proper recycling and disposal of e-waste. Intel® NUC and Intel® Compute Stick US Recycling Programs are two such programs started by Intel to help protect the environment.

2. Reducing operational impact on climate and energy: There is a need for companies around the world to focus on reducing their environmental impact. This is achievable through direct and electricity-generated emissions. Intel has also been working on this and has invested over $200 million for energy conservation projects all over the world. These projects have enabled the company to save over 4.5 billion kWh and achieve savings of over $500 million. The LEED Platinum building in Israel inaugurated in 2019 has been provided with smart innovation applications like sensors that monitor lighting, temperature, ventilation, parking as well as other building services and systems.

The remaining section of “Environment” is available only in the 'Complete Report' on purchase.

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Free Summary Report

This report contains the table contents only. In case you need the complete report please purchase using the buy options displayed.

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SWOT & PESTLE (combined)
Complete Report
USD 12.53

with PayPal
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On purchase, the report will reach your email inbox within minutes. At rare times, a slight delay not exceeding 4 hours might be caused.

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Intel Porter's Five Forces Analysis
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Intel

Comprehensive SWOT & PESTLE Research Reports

Intel SWOT & PESTLE Analysis

COMPANY PROFILE -Intel

Business Sector :Information Technology, Semiconductors

Operating Geography :United States, North America

About Intel :

Intel Revenue :

Competitive Analysis of Intel

Detailed SWOT Analysis of Intel

Strength

Weakness

Opportunity

Threat

Detailed Pestle Analysis of Intel

Political

Economic

Social

Technological

Legal

Environmental

You may also be interested in other analyses of Intel:

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