Case Analysis Of Intel

1) What actions did Intel take to create an industry standard in microprocessors? Intel achievements as a microprocessor company can be based or rather it was premised on the diversity that was in existence in the IT world, where the company faced a lot of offers that were coming from who was who in the innovation world for instance, Samsung, HP, Dell etc. This was therefore considered to be the reason as to why the company was able to sell their microprocessors at expensive prices. Although they have been faced by stiff completion from Samsung and Toshiba which are currently manufacturing their own processors has thus reduced the price of the of the Intel products. Intel’s customers such as Samsung, Dell and HP have medium power of buyers …show more content…
Intel has as an advantage of bargaining power with suppliers, since the material used to manufacture the system are abundant such as metal, silicon and plastic, thus gives intel the advantage of working with several suppliers who have the best quality and giving them at an affordable price. The threat of substitute is low; this is because mobile phone, computers and other high-tech devices rely on processors in order to function. The Threat of new entrants is now huge due to the developments in technology; this will eventually lead to barrier of patents that cover Intel’s developments. Finally, the competition of rivalry is low because Intel has the largest share of the Market in mobile processor and PC, and they have loyal suppliers like Dell, Nokia and H par loyal suppliers. The competition in the processor industry is low and the quality difference is somehow high, this is because there is a high cost involved in …show more content…
In using the VRIO framework to analyze how Intel has been able to stay afloat was due to the following. Value which shows that they truly valued technological innovation, which would allow them to stay an inch or steps in front of their competitors. The managers tried to incorporate everyone so that they could be easily make a mistake but in the quest of solving it they develop a more complex gadget. They ensured that the products that they were making were not rare in that there were other companies that were making this commodities, what they had to do was to ensure that the products that they were going to channel out to the market were slightly different compared to that of their competitors which made it rare. With regards to inimitability, the company advanced in the research and developments that would be helpful in the development of the creation of the processor. The organization that the company has is that it is more concerned with the future and it will therefore be responsible in handling any issues that would arise in future. Therefore, Intel has been able to differentiate their products by adding extra features and making them affordable for all its customers with signs of differentiation focus something that are different from what other competitors offer