Question

What is Intel’s current Strategic Competitive Strategy?

Answer 1

When we think of Intel, first thing that comes into our mind is microprocessors used in our computers. Everyone is familiar with Intel. Intel Corporation is the world’s largest manufacturer of semiconductor chips. The company founded in 1968, today operates across most of the parts of world including North America, Asia, Europe and son on. Company’s product line consists of microprocessors, integrated circuits, flash memory, motherboard chipsets, wired and wireless products, and many other advanced technologies for communications and computing industries.

We all know that Intel has become a most preferred brand by producing high quality microprocessors, thereby leaving its competitors behind. The reason behind company’s inspiring success lies in its competitive strategy. Intel follows a generic competitive strategy to maintain its overall competitive advantage and an intensive competitive strategy which determines how the company can build its market position and brand image by competing with others,

Intel’s generic competitive strategy mainly focusses on product differentiation wherein the brand provides value-added features in its products and services to customers. By introducing microprocessors back in 1971, the company was able to establish itself as unique provider of technology. Currently also, the company’s new products such as Intel Core 2 Quad, Quad-core and dual-core Intel Xeon processors and mobile processors which offers advanced features, has helped Intel gain huge competitive advantage over its strong competitors like AMD.

Intel’s intensive competitive strategy is based in taking advantage of its product research, innovation, development and manufacturing capabilities to offer something that is better than its competitors. This majorly includes:

• Integrating the idea of development of new products or improving existing ones in its mission and vision statement.
• Developing a core team which included members from all functions areas, R&D, manufacturing, technology, design, and packaging. Many other companies are not able to combine these functions together.
• Investing dollars of amount in R&D and manufacturing which may not be possible for its rivals to match.
• Developing solutions that adds value for the customers on three fronts, product-related, user-related and market-related.
• Optimising its highly productive manufacturing plant to produce the product in large volumes in a day. Many of its rivals are not even near that number in a year’s time.