B2B Assignment

Submitted by: - Shivanya Chhabra

200010301050

Intel’s Mission: -

“We engineer solutions for customers’ greatest challenges with reliable, cloud to edge

computing, inspired by Moore’s Law”

Intel’s Vision: -

“We are on a journey to be the trusted performance leader that unleashes the potential of

data”

Intel’s Values: -

Their values are to be customer obsessed, fearless, truth, transparency, inclusion quality and

one intel.

Intel’s Purpose: -

“We create world-changing technology that improves the life of every person on the planet”
SWOT ANALYSIS

Intel’s Strengths (Internal Strategic Factors)

In the global market for semiconductors, Intel Corporation is one of the strongest

competitors. This section of SWOT analysis analyses the companies’ main strengths i.e.,

internal strategic factors that have immediate effect for business success. Intel’s strengths are

listed below:

1. Strong partnership with Microsoft

2. High-efficiency fabrication processes

3. Economies of scale

Intel has a continuing partnership with Microsoft Corporation, which rules the market for

desktop operating systems. This partnership is partially responsible for the success of the two

companies. For instance, Intel continues to benefit from the wide profit margins of its

processors developed for market-dominant Windows systems. In turn,

Microsoft gains through the integration of Intel's processors within its Windows operating sys

tems that give Windows satisfactory performance. Both companies use this strength to

counteract the effects of new technologies. Intel uses the high efficiency of fabrication

processes as a major competitive advantage. The company's efficiency allows it to supply

processors to equipment manufacturers on time and in adequate quantities. In addition, Intel's

long-term focus on semiconductor fabrication has led to economies of scale

that rival companies find difficult to match. In this part of the SWOT analysis of

Intel, strategic alliances and organizational capabilities support the company.
Intel’s Weaknesses (Internal Strategic Factors)

Intel remains a market leader, but sustaining this leadership requires addressing Intel's

weaknesses. This part of a SWOT analysis identifies the organization's weaknesses or

internal factors that impact its performance. Intel has the following weaknesses:

1. Insignificant presence in the mobile market

2. Dependence on Windows machines

3. Limited business diversification

Although Intel has a successful partnership with Microsoft, it has a weakness because

it is compelled to focus on microprocessor design and fabrication for Windows systems.

As a result, the company lacks comparably extensive business processes for other products.

As an example, Intel fails to develop competitive and profitable processors for mobile

devices. Furthermore, the partnership puts the company at risk of a decline in desktop/PC

sales. One weakness of Intel is its limited business diversification. Diversification protects the

organization from market-based risks. In order to address the weaknesses identified in this

part of the SWOT analysis, Intel needs to implement major strategic changes.

Opportunities for Intel Corporation (External Strategic Factors)

Intel's performance can be improved in many ways. In this section of the SWOT analysis,

business opportunities or external factors that facilitate growth are identified.

The following opportunities are available in Intel’s external environment:

1. Business diversification
 2. Product development for the mobile market

3. Flexibility of processors

Intel can improve its performance by diversifying its business. For instance, the company can

develop semiconductor products for the household appliance market. Acquisitions can also

enable a company to diversify. In the context of Intel's generic strategy and intensive growth

strategies, diversification remains an important opportunity that has not been fully exploited.

Due to the lack of successful Intel processors for mobile devices, the company has the

opportunity to develop products for the mobile market. In addition, the company can increase

the flexibility of its processors to increase their potential use. Intel Corporation has

opportunities to increase its efforts outside of developing microprocessors for Windows

systems, in this part of the SWOT analysis.

Threats Facing Intel (External Strategic Factors)

As a result of unaddressed threats in the external environment, Intel's business could decline.

SWOT analysis specifies the threats or external strategic factors that reduce or end a

business. In this case, Intel faces the following threats in its business environment:

1. Rapid market shifts to mobile computing

2. Competition with ARM in the mobile processor

3. Competition with AMD and ARM in the PC market

Intel dominates the market for PC processors, in part due to the popularity of Windows

systems. Although the company faces a growing threat from the rapid market shift to mobile

computing. For instance, PC sales decline, but mobile device sales rise. Intel faces this threat

because it has not captured the mobile device processor market. The company is especially at
risk from competition with ARM devices. A majority of mobile device manufacturers use

processors developed by ARM Holdings. Moreover, AMD, a minor competitor in the PC

market, has the opportunity to capture a bigger share, while ARM Holdings has a chance to

succeed with its enhanced processors for desktop systems. To address the threats in this part

of the SWOT analysis, Intel will have to ensure competitive advantage on the PC market and

introduce a competitive mobile device.

Intel’s SWOT Analysis – Recommendations

SWOT analysis of Intel shows the company's current stability based on its business strengths.

Its dominant industry position shows the company's ability to withstand the effects of

competition and new entrants in the market. Despite Intel's strengths, weaknesses make the

company susceptible to threats in its business environment. For instance, the company is

vulnerable to the rapid market shift to mobile computing due to its insignificant presence in

the mobile market. As a result, Intel is vulnerable to AMD and ARM's threat of competition,

which puts it at risk from Windows PCs. Intel has the opportunity, however, to address these

concerns.

A recommendation resulting from this SWOT analysis is for Intel to focus on developing

competitive and profitable mobile processors in order to increase its market share in the

semiconductor industry. To reduce its dependence on Microsoft, it is also recommended that

the company enter into new partnerships. It is also recommended that Intel diversify its

business to reduce market risks and to mitigate the negative impact that declining PC sales

might have on its business. This can be done by expanding into other industries or through

mergers and acquisitions.

INTEL’S CUSTOMER SEGMENTATION

OEMs and ODMs are the main purchasers of their products, as ODMs offer designs and

manufacturing services to branded and unbranded private labels. In addition, they provide

their products to makers of a wide range of industrial and communication equipment. Also

included in their customer base are those who purchase their products via distributors,

resellers, retailers, and OEMs. There are thousands of indirect customers throughout the

world -- systems builders who purchase microprocessors and other products from Intel's

distributors.

Boxed processors are a product they offer distributors that allows them to sell them in small

quantities to customers of systems builders. They also offer boxed processors for direct retail.

Lenovo Group Limited accounted for 12% of our net revenue, followed by Hewlett-Packard

Company with 17% and Dell Inc. with 15%. They had no other customer who accounted for

more than 10% of their net revenue.

They sell their products through sales offices around the world. The sale of their products is

typically handled through purchase order acknowledgements which include standard terms

and conditions concerning payments, warranties, and indemnities for specific issues specific

to their products, like patents and copyrights. their customers may periodically enter into

additional agreements with them covering, for instance, changes to their standard terms and

conditions, new product development and marketing, private-label branding, and the like.

The majority of their sales are conducted electronically through their web-based processes,

which allow customers to review inventory availability and follow the progress of specific

orders. The price of a particular product may change depending on its volume and other

factors. To encourage customers to adopt their products and technology, they offer them

rebates, discounts, and other incentives.

Even in arrangements in which revenue recognition and consideration of cost of sales are

deferred, they typically ship their products to customers on terms that transfer title. They

usually require payment within 30 days of shipment or delivery in their standard terms and

conditions of sale. In order to control Intel's credit risk arising from unpaid invoices, their

credit department sets accounts receivable and shipping limits for individual customers. A

quantitative and qualitative assessment of credit risk, which is followed by a decision about

whether one or more credit support devices will be used, such as a parent guarantee or

standby letter of credit.

OVER FRAMEWORK

Intel’s Offering

The organization's output or products are defined by this component of the OVER

framework, including all goods and services. Microprocessors are Intel's most well-known

product as a semiconductor company. In addition to memory chips, the company also makes

computing devices and devices for data transmission. As a result of the company's growth

and expansion, this product mix is a reflection of its past. Companies add new products to

their product mix as they grow, for example, wireless technology. Products are grouped in

Intel’s product mix, as follows:

1. Devices & Systems

2. Processors

3. Boards & Kits

4. Chipsets

5. Solid State Drives

6. Server Products

7. Networking & Communications

8. Wireless

9. Software & Services

10. Intel Gateways

11. FPGAs

12. Technologies (Solutions)

A range of devices and systems are offered by the company, including cable modems and

Intel Compute Cards. Processors of different types are also offered. These processors include

Intel Core, Xeon, and Atom. Other product lines include a variety of products. There are

some products included in the company's product lines, including items manufactured by

equipment manufacturers containing its products, like laptops containing Intel processors.

The brand shows that it is capable of more than just microprocessors, as it is associated with

more product lines. It's likely that Intel will add new product lines in its effort to gain new

revenue streams and enter new markets. The introduction of new products can lead to

changes in the organizational structure of the company. A new product line such as this

would reflect the current situation of the company and the global semiconductor market. The

company's product development and strategic alliances are a measure of its organizational

progress.

Intel’s Value

Intel's pricing is based on market conditions and on its overall competitive advantage relative

to other semiconductor firms in terms of price points and ranges. Intel has the following

pricing strategies:

1. Premium Pricing Strategy

2. Market-oriented Pricing Strategy

In order to maximize its profits, Intel Corporation uses premium pricing. Due to this strategy,

the company's prices are relatively higher than those of its competitors, such as AMD.

Having a pricing strategy that maximizes profit margins is an advantage. Due to its

complexity and possible failure in price-sensitive markets, it is a disadvantage. The price

strategy used by Intel succeeds simply because it maintains a premium brand with a high
perceived value among its target audience. As an example, the company advertises its brand

and products as leaders in the semiconductor industry. As a result, Intel products are

perceived as superior by consumers. Despite cheaper products from competitors, the

company is able to sell its products at higher prices and expect growing revenues.

Alternatively, a market-oriented pricing strategy involves determining the market's conditions

and its competitors' prices. The Intel pricing strategy guides the adjustment of premium

prices. Premium pricing is still the main strategy used by the company to set prices. The

premium price point Intel offers, which is backed by its premium brand, ensures high

profitability.

Intel’s Experience

In this aspect of the framework, Intel identifies the different places or venues where it can

reach and interact with its target customers. Business distribution strategies and distribution

networks are defined by these transactions. The company uses the following venues to reach

its target market:

1. Intel Shop

2. IT resellers

3. Authorized sellers of embedded products

Intel’s Relationships

Intel Shop is the most direct outlet for the company's products to be distributed and sold. Intel

Shop, for example, is part of its official website. Moreover, Intel Shop locations are located

around the world in key areas. In addition to those who sell computers based on Intel

microprocessors and boards, there are also vendors of embedded products. To maximize its

global market reach and distribution and sale of products via these places, the company

utilizes a combination of venues. Market penetration is one of the company's intensive

strategies for achieving growth by using this element of its marketing mix.

The strategies, tactics and tools used to promote a company's products are included in the

marketing mix. Products are promoted by Intel to consumers and others who use computing

technologies, as well as to direct customers, typically laptop and desktop manufacturers.

Promotions play a key role in determining the ability of a firm to maintain or grow revenues

despite competing firms. Intel’s promotional mix involves the following promotion activities:

1. Advertising

2. Public Relations

3. Direct Marketing

Intel uses advertising as a marketing tool to promote products that contain Intel processor

chips and boards as well as equipment manufactured by other companies. By launching the

"Intel Inside" advertising campaign during the 1990s, Intel successfully increased consumer

loyalty and raised consumer awareness of its products. A sample of another advertisement the

company used in the 2017 Super Bowl is shown below. The company also uses public

relations to promote. In addition to sponsoring science shows for high schools, the firm

sponsors special events. Through such sponsorships the company is able to build customer

loyalty and promote brand awareness. Corporate social responsibility is addressed through
these public relations programs as well. Additionally, the company uses direct marketing to

promote its products. In order to reach profitable agreements, the company communicates

directly with equipment manufacturers and sellers. This represents an aspect of Intel's

marketing mix that demonstrates the importance of advertising, public relations, and direct

marketing equally for achieving the company's promotional goals.

Magazine Ad