Intel Porter’s 5 Five Forces (2021)

Intel Company Overview:

Intel is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. They are the world’s largest and highest valued semiconductor chip manufacturer, based on revenue, and have been the inventor of the x86 series of microprocessors, the processors found in most personal computers (PCs). Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactures motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors, and other devices related to communications and computing. Let’s now go over Porter’s Five Forces Model of Intel.



Intel Competitive Rivalry:



Intel has a very competitive rivalry for their company. They have to stay on top of the newest technology coming out in order to continue being the best option available. Intel also has to pay attention to what their competitors are doing because they could be taking business away from them if they are not careful. The main point about this rivalry is that it will be difficult for any other company to take Intel’s place in the technology world. This is because they already have such a stronghold on the market and all their competitors know this.



Intel Bargaining Power Of Suppliers:



The suppliers for Intel will most likely keep their prices stable, as it would be difficult for them to raise prices to them. Their suppliers also know that Intel is a strong company and they will need their products in order to remain afloat. The bargaining power of suppliers can be looked at like this: there needs to be a certain amount offered for it to go through, if anything goes too much higher than the average price then it may not happen.



Intel Bargaining Power Of Buyers:



If Intel wants to keep its business afloat, it will need to have good bargaining power over the buyers. This means that when people are considering buying something from them, they are willing to pay whatever price is offered. They also need enough people wanting their product or no one will buy it at all. The bargaining power of buyers would be Intel wanting to keep the market where they are in charge, but if they raise prices too high or offer products that are not worth anything then people will look elsewhere.



Intel Threat Of New Entrants:



The threat of new entrants is something that Intel must be aware of because if they fail to keep up with the newest technology coming out, then there will be a competing company that can offer it. There are many new companies on the market right now, but Intel still holds the majority of the market for this type of business. In order to combat this threat, Intel needs to be able to complete any tasks necessary in order to stay afloat while still holding onto their customers.



Intel Threat Of Substitutes:



Intel has to be aware of the substitutes for their company because there are quite a few out there that can take over if Intel does not focus on what they are doing. The substitute for this company is other technology companies, but where Intel holds the majority of the market. They need to continue with this in order to not lose their business. The threat of substitutes would be if Intel does not keep up with what they are doing, but there is always something new on the market that will take its place.



Intel Porter’s 5 Forces Conclusion:



Intel is one of the best companies out there for their technology and this will continue to be true. They have an advantage over other companies because they are known for doing good work. As long as they do not lose sight of what they are doing, then their company will remain one of the strongest in the industry. The main point about Intel’s business is that there are five forces acting on it and they will continue to do so for the foreseeable future.


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