1.
Business diversification
2.
Product development for the mobile market
3.
Flexibility of processors
Business diversification is an opportunity for Intel to improve its performance. For example, the
company can develop semiconductor products to target new segments in the household appliance
market. Acquisition of other firms can also diversify the business. Diversification remains a
significant opportunity that has not been fully exploited, considering
Intel’s generic strategy and
intensive growth strategies
. In addition, the company has the opportunity to develop products for
the mobile market, considering the lack of successful Intel processors for mobile devices. Also,
the company can increase the flexibility of its processors to widen their potential use. In this part
of the SWOT analysis of Intel Corporation, the opportunities point to increased effort outside of
developing microprocessors for Windows systems.
Threats Facing Intel (External Strategic Factors)
Intel’s business could potentially decline as a result of unaddressed threats in the external
environment. This part of the SWOT analysis specifies the threats or external strategic factors
that reduce or end businesses. In this case, Intel faces the following threats in its business
environment:
1.
Rapid market shift to mobile computing
2.
Competition with ARM in the mobile processor
3.
Competition with AMD and ARM in the PC market
Intel leads in the PC processor market, especially because of the dominance of Windows
systems. However, the rapid market shift to mobile computing is a growing threat against the
company. For example, as PC sales decline, mobile device sales increase. This condition
threatens Intel, which has failed to capture the mobile device processor market. In relation,
competition with ARM devices is a major threat against the company. ARM Holdings develops
processor architectures used by the majority of companies in the mobile device market.
Moreover, in the PC market, minor competitor AMD has potential to capture a bigger market
share, and ARM Holdings has potential to succeed with its enhanced processors for desktop
systems. Intel must ensure competitive advantage in the PC market and develop a competitive
product for the mobile device market to address the threats specified in this part of the SWOT
analysis.
Intel’s SWOT Analysis – Recommendations
This SWOT analysis of Intel indicates current stability based on business strengths. A dominant
industry position shows that the company has what it takes to withstand the effects of
competition and new entry. However, weaknesses make the company vulnerable to threats in its
business environment. For example, because of its insignificant presence in the mobile market,
Intel is vulnerable to the threat of the rapid market shift to mobile computing. Also, the company
is dependent on Windows machines, making it vulnerable to the threat of competition with AMD
and ARM. Nonetheless, Intel has opportunities to address these issues.
