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Comprehensive S.W.O.T Analysis of Intel

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What is SWOT Analysis? SWOT analysis is a simple but effective method to analyze a company’s Strengths, Weaknesses, Opportunities, and Threats. It helps a company build more upon what it does well, be aware of where the company can improve, understand who its competitors are, and know the opportunities so that it can take maximum advantage of them.

 

In this blog, we shall be looking into the marketing strategy and SWOT Analysis of Intel.

 

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About Intel

 

SWOT Analysis of Intel | IIDE

Intel is a multinational corporation and technology company. Headquartered in Santa Clara, California, this company was founded by  Robert Noyce and Gordon Moore on the 18th of July, 1968. Intel is the world’s largest semiconductor manufacturer by revenue. The company supplies microprocessors for computer system manufacturers such as Lenovo, Dell, and HP  to name a few. It also manufactures motherboard chipsets, integrated circuits, embedded processors, network interface controllers. Currently, intel has a revenue of 77.87 billion US dollars and continues to grow by the day.

 

Marketing Mix of Intel

 

1. Product:

Primarily known as a semiconductor firm, Intel is mainly known for producing microprocessors. However, the company manufactures various other products such as memory chips, processors, chipsets, solid-state drives, server products, wireless, software, and services.

SWOT Analysis of Intel | IIDE

 

2. Place:

Intel is spread across 63 countries. It uses physical and virtual venues such as Intel shops, IT resellers, and authorized sellers of embedded products. Out of the three, Intel Shop is the most direct avenue for the purchase of the companies products.

3. Promotion:

The strategies and tactics used by Intel to promote its products to buyers, who are mostly manufacturers of the laptop, desktop, and other similar products by using three main promotional strategies. These are Advertising, Public Relations, and Direct Marketing.

Advertising is an expensive but effective method of promoting the company and its products. Public Relations are maintained by sponsoring events that not only bring brand awareness but also ensure customer loyalty. Direct Marketing mainly comprises direct communications with potential buyers.

4. Pricing:

Intel Corporation uses two main pricing strategies, namely, Premium Pricing Strategy and Market Oriented Pricing Strategy. The Premium Pricing strategy aims to maximize profits by keeping the prices above its competitors. This displays the brand as a premium product. However, this strategy may fail in a price-sensitive market. Market Oriented Pricing Strategy, on the other hand, determines the price of the product based on market conditions and the price offered by its competitors.

 

Segmentation, Targeting and positioning

 

1. Segmentation:

Intel follows a demographic as well as a psychographic segmentation strategy.

2.Targeting:

Since most of the products offered by Intel are standardized as easily available all over the world, it uses an undifferentiated targeting strategy.

3. Positioning:

Intel positions itself based on the usage of its products and as a company that offers products with many benefits.

 

SWOT Analysis of Intel

 

SWOT analysis is a process where a company analyzes 2 internal factors i.e. Strengths and weaknesses, and 2 external factors i.e. Opportunities and threats

Let’s see each one in Detail

 

1. Strengths of Intel

SWOT Analysis of Intel | IIDE

 

  • Technology leader: 

Intel inside has been one of Intel’s strongest marketing campaigns and has made Intel the leader in terms of technology.

  • Ranking:

Intel is ranked 7th in the Brand Values of the top 10 technology companies. This adds to the brand value of Intel as well

  • Brand Value: 

Intel ranks 40th worldwide (according to brand finance report 2016) and 7th amongst technology giants.

  • Market Share: 

Intel is the worlds largest microchip manufacturer in terms of revenue.

 

2. Weaknesses of Intel

 

  • Not Diverse:

Intel is limited to the personal computer segment.

  • Overproduction:

Intel often overproduces, which causes flooding in the market.

  • Service in Developing countries: 

Intel’s services are relatively slower in many developing countries like India.

 

3. Opportunities for Intel

SWOT Analysis of Intel | IIDE

 

  • The era of Technology and Computers: 

The Demand for computers has been on a rise. There was a steep increase in the sales graph of computers due to the pandemic as well. Work from home and Online education has caused an increase in sales.

  • Drones: 

Drones are gradually gaining a lot of popularity and are destined to be the future of logistics, surveillance. Intel can work on processors for Drones.

  • Automatic Cars: 

This is another segment that requires processors and hence presents a great opportunity for a company like Intel.

 

4. Threats to Intel

 

  • One product:  

Intel puts a major focus on one product only. If another company releases a better version of the current product which Intel offers, it will be a huge loss for Intel.

  • Competitors:

Intel Faces competition from companies like AMD, Dell, IBM.Intel needs to ensure that its price, quality, and technology always stay ahead of these companies.

  • Price: 

Many companies try to gain Intels customers by offering their products at a lower price. A price-sensitive market will be attracted to much lower prices.

 

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Conclusion

Intel is one of the technology leaders of the world. Its marketing strategy and digital marketing presence are both commendable. The SWOT analysis shows the current stability of Intel which is based mainly on the company’s strengths. Intel is at a dominant industry position that shows that the company has what it takes to withstand the effects of competition and even However, Intel has certain weaknesses as well which make the company vulnerable to threats in its business environment. The new entry, but if it focuses on its strengths, grabs the right opportunity, and continues to develop in its distinctive approaches then Intel will undoubtedly be able to maintain its rising trajectory for even longer.

With this, we reach the end of this case study on the SWOT Analysis of Intel. I would want to thank you for reading this and I hope this was insightful, to read more such blogs, click here

 

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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