• Founders: Gordon Moore, Robert Noyce

• Founded: July 18, 1968

• Headquarters: Santa Clara, California

• Largest Semi-Conductor Chipmaker based on Revenue

Strength• Huge R & D Spend•Innovation•Market Leadership•Global Presence•Strong Tie ups

Weakness• Highly Confined to PC Segment•Small existence in Mobile Processors Market

Opportunity•Mobile Segment –Hardware as well as Software• Unmanned Aerial Vehicles (Drones)

Threat• Lagging in Mobile & Portable Segment

Product Mix &

Industrial Marketing Environment

Product Mix of INTEL

Processor Mobile DevicesNetworking

Products

Intel-Atom-Processor-Z3570

Value Processor

Intel Core

Chipsets

Controllers

Adapters

Boards

Galileo

Edison

Intel-Atom-Processor-Z3736F

Intel-Atom-Processor-Z3530

Intel-Atom-Processor-Z3736G

Intel Xeon

Intel Quark

Pentium

Celeron

Switches

Optics

Cables

Workstation Server

Server Chipset

PC Chipset

Server Products

RAID

Server board

I/O device

The Interface Level

Buyer’s Interface

Intel Buyers

Input Supplier

Manufacturers (OEM’s)• HP , Dell , IBM

Manufacturers (ODM’s)• Quanta, SuperMicro

Users• Google

Distributors• Processor Chipsets

For Assembled PC’s

Seller’s Interface

Intel BuyersSuppliers

Raw Material - Silicon- Copper- Plastic

Capital- Vanguard Group, Inc- State Street Corp- BlackRock Fund Advisors

Facilitator’s Interface

Intel Capital - 1250 companies in 52 countries- Building Technology Ecosystems

Developer Tools - Intel XDK

Advertising Agencies - Venables Bell & Partner

Intel Promoters - OEM’s “Intel Inside”

Intel BuyersSupplier

s

Facilitators

Market Segment

Intel

Facilitators

Buyers

Market Segments

Suppliers

Competitors - AMD- Nvidia- Texas Instruments Inc.

Market Share PC => 79.3%Mobile PC => 84.4 %

Publics

Financial Publics• Institutional ownership : 64.65%

• Total value (Millions) : $ 113,932/-

• Major Investors: Barclays Global Investors UK Holdings group, Vanguard Group Inc.

Independent Press

• Intel developing voice-embedded software in local Indian languages

-by Press Trust Of India, Jun 05, 2013

• Overheard: More Chips on Intel

-Wall Street Journal, Jan 16, 2015

General Publics

For an Industrial marketer like Intel, the demand for its products by the

customers depends directly on the final demand by the end user, thus

general public satisfaction also plays an important role.

Vigyaan Yatra, UP, India Educating India campaign by Intel

Internal Publics

• Intel believes that employees are the company's assets and thus on a regular

basis, it comes up with different programs which help employees enhance their

talent. For example:

• ‘Aarambh’ - wherein managers are made to interact with the newcomers;

• ‘Anubhav’ - an experiential learning program;

• CAIR (Careers At Intel Realised) Fair - where employees are provided with

resources, tools and support to work on areas they are passionate about.

Macro-Environment

6 Major Factors affecting Intel

Economic Factors

Product demand

• Customer product needs

• Competitors pricing

• Tax rates

• Standard of living

• Market acceptance

Ecological Factors

Design semi-conductor keeping environment in mind

Responsible operations(supply chain)

Engaging employees to reduce impact

Recycling- Follows WEEE directive

Chip life extended up to 10 years

Physical Factors

• Obtaining the resources or products

• Subject to theft, loss or misuse of personal data and components

• Risks of global operations

• Employees: Hardware and Software Engineers

Technological Factors

• Complex process of producing integrated circuits

• Response to technological and market developments

• Third party threats

• Process of Transition

Demographic Factors

Increasing

population

Age

discrimination

Booming IT sector

Industrial Marketing Strategies

Industrial Environment Marketing Strategies

• Independent Strategies

• Cooperative Strategies

• Strategic Manoeuvring

24

Intel’s Independent Strategies

Competitive Aggression

Product Differentiation

Speed, innovation & manufacturing techniques

Competitive Pacification

Improving Competitive Relations

Implicit Cooperation

Technology Leadership

“Strategies to reduce environmental uncertainties using its own resources & ingenuity .”

Political/Legal

• Indirect Lobbying• Anti- Trust

regulatory issues (May 2009)

Resource Supplies

• Resolution of irregular demand

• Vendor Managed Inventory (VMI)

Publics

• Corporate image advertising

• Commitment to interest groups

Intel’s Cooperative Strategies

“Strategies involving cooperation with industries, firms, groups etc.”

Intel’s Strategy

Ingredient Branding Strategy

Association with publishers & media

Intel Inside Campaign (1991)

“To educate both the retail sales associates and the consumers about the value of Intel microprocessors, and to explain to them the differences between the

microprocessors.”

Campaign Highlights:• Association with 200 OEM’s for Brand Recognition.

• 1st Trademark in the Electric Component Industry.

• “Intel Inside” aka Quality & Reliable product for Buyers.

5 years later:• Intel’s link with World Market Leaders : COMPAQ, IBM !

Current Scenario:• Brand value quantified at US$35 billion (Initial investment US$3.4 billion)

Intel’s Strategic Manoeuvring“Strategies that are designed to alter or change the firms relationship

with respect to its interface environment.”

• Domain Selection

• Discovery of new markets with limited regulations & competitions.

• Example: Intel’s R&D in Drones & Intel Atom for Smartphones.

• Diversification

• Geographic Expansions.

Government Regulations on I.T. and Hardware equipment

Court Cases against and by Intel

• Intel v/s Independent Indian Tech firms

• Intel and its subsidiaries taken to Competition Commission of India in

2011

• Ruled in favour of Intel in 2014

• European union imposed a fine of $1.44 billion on Intel in 2008 and

the ruling was sustained in 2014

Conclusion

• Survival of Intel through thorough search of Macro-Environment

• Introduction of new opportunities due to opening up of new markets.

• R&D partnership with Ascending Technologies, Germany may lead to change of market dynamics.