Strategic Goal Controlling and Executive Summary
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MarketAnalysis.docMarket analysis
Market analysis
Market analysis
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Market analysis involves a quantitative and qualitative assessment of the market. The analysis will look into the size of the market, the completion, customers and the economic environment. Intel manufactures computer devices like processers, motherboard chipsets, flash memory, graphic chips and integrated circuits. The big computer manufacturers like Apple Inc, Lenovo, HP and Dell use Intel’s processors in their computers. This means the company’s core business is the manufacture of processors. The growing mobile market has also seen the company trying to increase its presence in that market.
The industry has been growing over the last few years as seen with the growth of the company’s revenue which grew in 2016 from $59.4 billion to $70.8 billion. As at the current year a combined $412.02 billion will be spent on sales of semi conductors. The current semiconductors are on the maturity state. The industry is largely saturated with competitors like AMD also increasing their market share. The company has begun changing its products to meet market demands with the release of the new 10nm chips. The competition is high and sales have started to shrink. Target markets for Intel will include big computer manufacturing companies, consumers and resellers. Big computer companies are the biggest customers as they will use the semi conductors in production of their desktops and notebooks. Customers also form part of the target market as they use the semi conductors to replace worn out in their desktops and notebooks. The company will need authorize resellers from across the globe to sale their products worldwide.
Big computer companies are companies dealing with the manufacture of computers and notebooks. These companies have a high customer base for their products and usually sale their products worldwide. They use the semiconductors during the manufacture of their products. These big companies are looking for innovative company that is able to change with the changes in technology and packages that suit their products. The companies have various products for their customers and require customized semiconductors for each product. The company should be able to change based on technological changes in the market. The target market is not a niche as products are not developed specifically to meet certain markets but these are big companies that develop products that suit the whole market. They make sure that their products are acceptable to the whole market.
The biggest competitor in the semiconductors industry is Advanced Micro Devices. This company develops computer processors for both business and consumers and is based in Santa Clara USA. The company has reliable suppliers of the raw materials it uses in the manufacture of computer processors. The company is also good at developing new products and keeping at par with new technologies in the market. Some of the weaknesses of the company are; a very low rate of investment in research and technology which makes it unable to compete with some leading industry players. When compared with other companies in the industry their attrition rate is higher in the workforce as they spend a lot in training and developing their workers.
Intel’s strategy market is the same as Advanced Micro Devices since both companies have their computer processors in desktops and notebooks. There is an increase in Personal computer sales and notebooks that have AMD’s micro processor.
One legal trend that will affect how Intel does business is lawsuits due to data privacy. The hefty fines charged have led to Intel sponsoring a bill in Congress to shield them from such fines. The bill will make sure they are protected if they attest to the US Federal Trade Commission that strong measures have been taken to protect consumer data.
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