International Marketing

Intel Corporation International Marketing

6/28/2014


Contents
Introduction ..................................................................................................................................... 3
Intel Corporation Profile .................................................................................................................. 3
Challenging International Marketing .............................................................................................. 4
Identifying a True Market Need .................................................................................................. 4
Brand-Name Market Power ........................................................................................................ 4
Intel International Marketing Strategy ............................................................................................ 5
Competitive Advantages ............................................................................................................. 5
Intel Valued Chain ....................................................................................................................... 5
Ingredient Branding ..................................................................................................................... 5
Cost Leadership ........................................................................................................................... 6
Intel International Strategy Evaluation ........................................................................................... 6
Products ....................................................................................................................................... 6
Prices ........................................................................................................................................... 6
Promotion and Advertising ......................................................................................................... 7
Weaknesses ................................................................................................................................. 7
Standardization versus Adaptation ................................................................................................. 7
Internationalization Process Theory (IPT) ....................................................................................... 7
Conclusion ....................................................................................................................................... 8
References ....................................................................................................................................... 9








Introduction
Recently, the global market is becoming extremely diverse and with a challenging & fast
nature. Big corporations are like big elephants, where their decisions of market change
are becoming slower and slower than recent startups and small organizations. This can be
justified by the fact of the market value where large corporation has extensive fears on its
market power and value in accordance with the international changes (Hans, 2006) in
marketing theories.
In the recent decades, things change rapidly, even if we dont want them to. This
introduces a new way of corporate marketing to change its stable and comfortable zone of
interest and investigate new product, services or even technologies that are becoming
vital for recent daily life. However markets can succeed in delivering the same kind of
products with the same marketing and same margins (JormaLarimo, 2009), the changing
current nature of our lives and our environments requires a change and an adaptation.
Some international market theories nowadays are totally based on the concept of
survival adaptation.
Intel Corporation Profile
Specifically speaking about Intel, Intel Corporation was incorporated in 1968. It is main
industry is to design and manufacture integrated digital technology platforms. Such
platforms consist of microprocessor and chipset which is called System on Chip (SOC).
Its original clients who it sells their products are the global original equipment industry
providers in addition to the major manufacturers in the computing and communications
industries around the world.

Intel provides platforms that are to be used
in various ranges of applications such as
PCs, Ultra books, Laptops, Tablets and
smart phones. It also sells its developed
software platforms and services, mainly in
security applications and wearables that
integrates several technologies, may be
invented by competitors or other
companies, in one compacted platform under Intel manufacturing process. Intel basically
depends on the acquisition marketing, where it acquired many startups that Intel
envisioned great deal behind them.

Intel provides platforms that are to be used in various ranges of applications such as PCs,
Ultra-books, Laptops, Tablets and smart phones. It also sells its developed software
platforms and services, mainly in security applications and wearables that integrates
several technologies, may be invented by competitors or other companies, in one
compacted platform under Intel manufacturing process. Intel basically depends on the
acquisition marketing, where it acquired many startups that Intel envisioned great deal
behind them. On Jan 2011, Intel acquired the Wireless Solutions (WLS) business. And by
Feb 2011, it acquired McAfee Inc as well. But one the most successful decisions of
acquisition of Intel is to acquire Inter Digital Inc. Inter Digital is a wireless technology
inventor company and it supplied Intel with more than 2000 patents in the first year of
acquisition. This is important to be mentioned because this specific acquisition made a
turning point in I ntel international marketing stratify about wireless communications
patenting.
In addition, Intel offers Microsystems on ship (Micro processing units) with one or
several cores. It also offers graphics functionality as separate chipsets outside the unit
utility. Processor packages may also integrate the memory controllers, optimization
packages and PCI control modules. So all in all when speaking about Intel corporation
international marketing, it will be kind of complicated since Intel is involved in several
markets with different types of them such as the horizontal or the vertical markets.
Hence, lets first investigate in summary what are the bases of the international
marketing.
Challenging International Marketing
Identifying a True Market Need
This is considered the utmost factor of any successful international marketing where
offering services, technologies or products that have compelling customer to have them.
It is a simple principle, customer has a problem that needs to be solved and this specific
service or product will. But this is not the way it goes nowadays since the international
markets are becoming very changeable. Recently, the magic word is the future. As the
corporations ask themselves what will be the needs of the customers after five years from
now? And how the corporation can introduce effective solutions for those needs?
Brand-Name Market Power
With the worldwide internet access and ease of communications, a name for any brand is
well known around the globe. However, being a known brand name around the globe, it
doesnt mean that its products and services will be popular but it means that this brand
will the advantage of the preferring that came from the trust, and this one challenge for
many small local companies is considered one of the most aggressive factors that affects
any large corporation international decisions for marketing.
Intel International Marketing Strategy
Competitive Advantages
Traditionally, Intel has been from beginning seeking to develop innovative technologies
(Chris, 2012), in addition to novel innovative manufacturing methods. And having the
main manufacturing equipments gave it noticeable benefits with lesser costs and
restrictions. And best of all, Intel is always planning on developing innovative solutions
and renews its technologies of manufacturing every two years, providing Intel with
consistent roadmap for its developments
(William, 2010).

Intel Valued Chain
Intel had used the technology introduction of
E-commerce very progressively in its
international market value. With E-
commerce advancements, orders can be
executed over the internet and this produced
around $1 billion of sales per month. Hence,
in terms of company value chain, e-
commerce provided companies with
enormous benefits. And by the examination
of the Intel value chain, we can see that marketing decisions sometimes is totally based
on e-commerce.
More interesting fact is that those Intel developments behind the E-commerce are
exponentially increasing, with the new space of applications being invented or even
upgraded. Intels main reputation or market share power came from the fact that it is the
biggest microprocessor provider in the world is also due to the completion of E-
commerce solutions.
Ingredient Branding
Along the past of history of the industrial electronic devices, the eye of consumers were
in general going to bulk product not interested in each component inside which are the
commodity products. And from the practical consumer point of view, commodity
products are not important if one fails, get it out and replace it with a new one.
Consumers dont notice the performance difference when using this component rather
than the other one may be they dont understand. But Intel took this leap of initiative to
build a commodity brand (Brand, 2005). Intel controlled around 90 percentage of the chip
market for personal computers. Intel strategically planned for dominating this area of
industry since it will be crucial for competitors to compete at the moment of the market
entry because of the nature of this specific industry that analytically will need around four
years to do so.
Cost Leadership
In cost focus, corporation seeks a cost benefits only in its objective industry. However
with differentiation focus, corporation seeks differentiation in its target segment. Any
corporation that employs the latter approach of cost focus seems to have several industry
aspects. However, it may also have core technology or industry to pay more attention to.
Intel dedicated its cost strategy to be generic one, through cutting the whole budget in its
supply chain to dominate cost control on different sectors. Intel diversified its activities in
healthcare, wireless communications and of course its core chip manufacturing industry.

Re- Engineering the market
And as usual obstacle for large corporations, Intel always intends to cut its expenditures
in its supply chain to ensure market continuity. Intel thought that building the right
quantity of products with the correct manufacturing process is not always helpful
sometimes it is very exhausting. So the company reengineered its supply chain from back
to back. By this, it maintained the same levels of competency in international markets
while heavily cutting the budget out. For example, in 2004, Intel had saved one billion
dollars by just getting out of the box and reengineering its processors than the
competitors processors by that time (Annual Report, 2012).
Intel International Strategy Evaluation
On the evaluation of any international market strategy, there are several marketing
elements (Roxana, 2011) that should be studied before the judgment.
Products
As discussed before, Intel is a commodity company that mainly produces components
rather complete products. Intel occupied the first place in the global market in commodity
industry. This came from its strategic planning on the fact that components are hard to
manufacture, it is slow industry and required a lot of initial money. Through this, Intel
built an empire to dominate the market without severs competitors.
Prices
Intel has got a progressive advantage for having the equipment capability than its market
competitors. In commodity industries, one of the most stopping obstacles is the constant
costs in equipments. This provides Intel with great deal of freedom to higher its price
competency. Also, Intel aims to re engineer the current market for best savings ever along
with maintain the leading in the market.
Promotion and Advertising
From beginning, Intel had identified that the commodity industry has a little popularity.
Hence, it launched its first successful co-op program in which they convinced major
manufacturers to use the "Intel inside" logo unit in their advertising and other marketing
material. This was kind of self marketing strategy or self promotion, where efforts are
exerted from the side of manufactures not Intel itself. The aim behind the Intel inside
campaign was to educate both retail sales and consumers about the value of Intel
components. Best of all, this campaign resulted in stunning fact about I ntel. I n late
1991, I ntel research market centers indicated that only 24% of the European PC
consumers were familiar with the I ntel I nside. One more year, they reported that the
percentage jumped out to 80% and to 94% in 5 later years.
Weaknesses
It can be deduced that Intel and likely as any large corporation is like a big elephant. It
means that to take a decision to transition or to change the future roadmap from business
to other, it may take years to practically execute that change. This has several reasons like
the long line of managerial approvals but the most important reason is the distributed
places and industries around the world. This negatively affects its moves toward
competitors. For example in 2007, I ntel world ranking of the most powerful branding
is dropped 10 ranks. Simply, it was because it couldnt take a quick move toward the
tablets and smart phones industry. Hence, by this time it is called for only the high
power devices.
Standardization versus Adaptation
Intel is an international corporation that markets its services and product universally. It
has research centers, offices and fabrications firms around the globe. Hence, the
administration cant be fully centralized and its major market cant be regionally
determined by certain place. Intel investments are exerted in different and many regions
in the world. It has several diverse markets types and product-aimed to specific
customers needs. So in conclusion, I ntel is adopting the adaptation more than the
standardized in its markets, distribution of products and physical existence.
Internationalization Process Theory (IPT)
Internationalization is the process by which the companies try to establish their presence
in the international market. However there is no clear definition on the concept. There are
many theories which explain the way in which this expansion is done. The process
adopted would be varying between companies (UK Essays, 2013).
The Uppsala or internationalization process theory can be employed in Intel because it is
expanding its market in international countries around the globe. One major principal that
the IPT depends on is the market commitment. And since Intel is adopting the adaptation
model that describes its activities to be in many regions around the globe, this one factor
of commitment is totally maintained by the diversity of markets that Intel has.
Conclusion
For all the aforementioned examples and discussions, it can be inferred that Intel is a big
corporation, that is adopted a generic type of international marketing. It used efficiently
its competitive advantages over its competitors around the world. It always seek to
employ re engineering methods of the market to maintain one step ahead of meeting
consumer needs with cutting the needed supply chain. It is proved as well that Intel
adopts the adaptation model, where the internationalization process can be used in Intel.
















References

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