Question

Do PESTEL Model Analysis for intel corporation in 2017

Answer 1

Intel Corporation ensures the long-term success of its semiconductor business by addressing issues in its remote or macro-environment, such as the ones shown in this PESTEL/PESTLE analysis of the company. The PESTEL/PESTLE Analysis allows business decision-makers and investors to look into the external factors that affect the firm and its remote or macro-environment. In this case, Intel’s business performance is constantly under the influence of such external factors. The company must continually develop and implement strategies that address these factors. As a leader in the semiconductor industry, Intel has the resources and capacity to withstand the possible threats from such external factors. Also, the company is in an industry position that empowers it to effectively exploit opportunities in its remote or macro-environment. Continuous evolution of strategies is needed to support Intel, especially when considering the rapid rate of innovation in the global market for products that involve microprocessors, such as laptops and smartphones.

A PESTEL/PESTLE analysis of Intel Corporation points to the changing characteristics of the remote or macro-environment of the business. The changes are linked to the dynamic nature of the global market for semiconductors, particularly markets for computing system processors. The analysis shows that Intel faces a wide variety of external factors that determine the conditions of the semiconductor market. Some of these external factors highlight opportunities that the company must include in its considerations for long-term strategic direction. Exploiting opportunities, especially new ones, is critically important in Intel’s business, which faces issues in its dependence on Windows systems

Political Factors Affecting Intel’s Business

The remote or macro-environment of Intel Corporation is subject to changes or trends in the political landscape. This aspect of the PESTEL/PESTLE Analysis accounts for the effects of government activity on firms. In this case, the following political external factors are significant in Intel’s business:

1. Continuing government support for globalization (opportunity & threat)
2. Improving intergovernmental action against monopoly (opportunity & threat)
3. Improving intergovernmental support for intellectual property protection (opportunity)

Government support for globalization presents an opportunity for Intel to expand its business based on improving market conditions. However, this external factor also creates the threat of increasing potential competition, as more foreign firms gain access to the global market for semiconductors, especially microprocessors. On the other hand, the improving intergovernmental action against monopoly facilitates Intel’s growth based on the increasing number of firms that sell products like laptops and desktops. However, the same external factor imposes the threat of potential increase in competition in the semiconductor market. Nonetheless, Intel can benefit from the opportunities linked to improved protection for its intellectual properties, as governments cooperate to develop appropriate legal protections. For example, the company can expect enhanced protection for its patents as it develops and fabricates new microprocessors. In this aspect of the PESTEL/PESTLE analysis of Intel, strategic decision-making must consider the notable threats in the remote or macro-environment.