Swot analysis of Intel. Intel Corporation is a tech US multinational company. Robert Noyce and Gordon Moore were the founders of Intel, and they laid the foundation of Tech Corporation on July 18, 1968. The headquarter of the company in Santa Clara, California, USA.
Intel’s main products and services are; Vehicle Automation Sensor, Flash Memory, Bluetooth Chipsets, Wi-Fi Chipsets, Solid-State drives, Mobile Phones, Modems, Network Interface Controller, Motherboard Chipsets, Systems-on-chip, Integrated Graphics processing units, and Central Processing Units.
According to an estimate, the annual revenue of Intel in March 2021 was 77.712 billion dollars, and it has increased by 2.61%. Out of which, the net income of the tech corporation was 18.599 billion dollars, and it has declined by 18.19%. However, the company has employed more than 110,600 employees to manage its worldwide operations.
Today, we’ll discuss the swot analysis of Intel. It’s going to analyze the internal and external factors impacting the world’s leading tech company. Here’s the swot analysis of Intel as follows;
Strengths of Intel
The motherboards, IGPU, CPU, and many other sensors are the main elements of computers. In fact, many worlds’ leading computer manufacturing brands like Lenovo, HP, Dell, and others use the processors, graphics chips, flash memory, integrated circuits, motherboards, and other supplies of Intel.
Intel has established a strong tie-up up business model with other tech companies, and it boosts the growth of both companies.
Intel has made many acquisitions over the years and they’ve strengthened the company’s market position. For instance, Mobileye in 2017, Movidius in 2016, Saffron Technology in 2015, Altera, Omek Interactive in 2013, Telmap in 2011, Infineon’s in 2010, McAfee in 2010, and many others.
Intel is operating its business across the globe. The vast and worldwide consumer market of the computer market of the top brand shows the influence and power of Intel in the international market.
According to an estimate by Mercury Research, the market share of Intel CPU x86 in 2020 was 78.3%, and it has increased by 0.7%. However, the market share of Intel in laptops and desktops was 81% and 80.7%. These statistics prove the market leadership role of Intel in the global market.
Innovation & Creativity
Intel is a highly innovative and creative brand. Tech Corporation always works on the growth and development of technology, it helps the company to come up with efficient technology.
Research & Development
According to an estimate, the research and development budget of Intel in 2020 was 13.904 billion dollars. The reason for spending billions of dollars on research and development is because of the company’s commitment to research, innovation, and creativity. That’s why the tech company has achieved the global market leadership position.
According to an estimate by Interbrand, the brand value of Intel in 2021 is 36,971 million dollars and it has decreased by -8%. The tech corporation ranked at the 12th position of the Best Global Brand in 2020. However, Intel came at the 12th position of World’s Most Valuable Brands in 2020 and at the 4th position of Just Companies in 2021 according to Forbes.
Weaknesses of Intel
Intel is indeed the market leader in the CPU and processor market. It doesn’t mean that the company doesn’t have competitors. In fact, the market is highly competitive and the growth of competitors jeopardizes the company’s market leadership role.
Limited to PC
Intel offers products like supplies, IGPU, CPU, chips, semiconductors, processors, and many other products for computers. The confinement only to the PC accessories makes the company’s portfolio very risky.
Opportunities available to Intel
Intel has acquired many companies and invested in various brands and research and development facilities, and it paid off very well. Now the tech company should keep following the same pattern of a merger, acquisition, and investment in other developing companies. It would help the brand to diversify its resources and expand its portfolio.
Mobile smartphones hardware and software is a highly growing field with a lot more growth potential. Since Intel is already working on the chips, CPU, microprocessor, and other semiconductors, and it has the expertise and manufacturing capacity to enter the mobile hardware segment. It would diversify the company’s business and lower the risk.
Threats Intel has to face
Samsung, Apple, IBM, and Qualcomm are the main competitors of Intel. In fact, many android and mobile companies prefer the hardware of Qualcomm and other companies than Intel. It shows the shifting of market trends and preferences and it’s not good for the business of Tech Company.
Slow in Mobile Industry
The growth of smartphones and mobile devices is decreasing the usage of computers and other devices. Intel is weak in the production of mobile and portable devices.
Pandemic of Covid-19
The pandemic of covid-19 has decreased the net profitability of Intel by 18.19% in 2020. It’s because the sale of computers and laptops declined because of the lockdown and shutdown of offices. PC companies like Dell and HP are the users of the company’s products.
Conclusion: Intel Swot Analysis
After a careful study of the swot analysis of Intel, we’ve realized that Intel is indeed the world’s leading tech company. Lagging in the production of mobile and portable hardware, competitors, and economic recession are some of the main challenges. Intel should utilize its resources and brand name to expand its portfolio and grow in the mobile portable market.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.