Despite Intel taking the leading positions on the market, there are several opportunities it can utilize to improve its performance. Intel can establish green partnerships with other companies to address the issue of environmental sustainability. According to Sadovnikova and Pujari, such coalitions have and can accrue positive returns in a year (252). Additionally, the company can take advantage of brand loyalty by introducing new products with no fear of losing money. As stated by Pappu and Quester, innovations can positively affect a company’s performance because of brand loyalty (18). The innovation strategy can be further transformed into diversification to improve market penetration.
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Diversification is an opportunity to improve a company’s performance by covering new segments of the market. Intel can invest more in research and development to create a semiconductor product and enter the household appliance market (Ferguson). Moreover, the acquisition is also a viable option for diversification for Intel. In 2017, Intel completed a $15 billion purchase of Mobileye, which allowed Intel to improve its position in the development of autonomous vehicles (Krzanich). The company can continue looking for further acquisitions to diversify its product lines.
The company can also focus more on their customers and make alterations in business processes to become more client-oriented. First, Intel can improve its presence on social media, which is the most convenient way for the customers to reach the company. Second, Intel can enhance its productivity to meet the customers’ demand and lower the prices. Third, the company can improve its presence in the mobile phone market, as loyal customers are willing to buy mobile devices with Intel processors (Ferguson). In short, even though the company is quite prosperous, there are steps to be made to improve its value and performance.
Intel is the global leader in making chipsets; however, its leadership is in danger. Samsung is expected to overtake the leading position as the largest chipmaker in the nearest future (Bhasin). The primary reason is that Intel produces processors mostly for PCs and laptops. However, today people prefer buying mobile devices, where Samsung is a clear leader (Bhasin). Therefore, Intel is to consider strategies for better penetration into the mobile market.
IBM is known and valued for the quality of its products and innovations. IBM is behind many modern world inventions that have revolutionized everyday life, including floppy disks, ATMs, hard disks, the PC, and magnetic stripe cards (Bhasin). The company specializes in computer software, hardware, and middleware. Intel is to invest more in research and development to compete with IBM.
Advanced Micro Devices (AMD) is a producer of servers, motherboards, and embedded processors. It is Intel’s most significant rival when it comes to the manufacture of x86 microprocessors (Bhasin). Since the acquisition of ATI Technologies in 2006, AMD acquired a dominant position in Graphics Processing Unit (GPU) production (Bhasin). Intel is to improve its presence in the GPU market to save its leading place in the production of microprocessors.
Nvidia is associated with gaming and cryptocurrencies in the technology industry. In 2014, the company stated its four strategic areas of development, including data centers, gaming, auto, and professional visualization, with its latest focus coming in the form of artificial intelligence (Bhasin). The company has also reached the automobile entertainment and navigation systems market and mobile phone processor market by creating Tegra (Bhasin). As in the case with AMD, Intel is to aim at strengthening its market position.
Qualcomm is a US-based telecommunication and semiconductor producer with an increasing presence on the market. While traditionally being treated as a minor threat, the company’s total assets of 52.35 billion dollars show that it is Intel’s fierce competitor. The company is popular in the smartphone industry, where Intel has relatively weak positions. Therefore, Intel should develop adequate mobile processing units to compete with Qualcomm effectively.
Bhasin, Hitesh. “Top 5 Intel Competitors.” Marketing91. Web.
Ferguson, Edward. “Intel Corporation’s SWOT Analysis & Recommendations.” Panmore. 2017. Web.
Krzanich, Brian. “Safety Is Why Intel Bought Mobileye.” Intel Newsroom. 2018. Web.
Pappu, Ravi, and Pascale G. Quester. “How Does Brand Innovativeness Affect Brand Loyalty?” European Journal of Marketing, vol. 50, no. 1/2, 2016, pp. 2-28. Web.
Sadovnikova, Anna, and Ashish Pujari. “The Effect of Green Partnerships on Firm Value.” Journal of the Academy of Marketing Science, vol. 45, no. 2, 2016, pp. 251-267. Web.