Customer center

We are a boutique essay service, not a mass production custom writing factory. Let us create a perfect paper for you today!

Example research essay topic: Porters Five Forces York Stock Exchange - 1,763 words

NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote

Intel Corporation Intel was founded in 1968; it develops technology to enable the computer and Internet revolution to change the world. The worlds first microprocessor was introduced in 1971. Nowadays, Intel manufactures chips, boards, systems, software building blocks, servers, and networking and communications products. Industry professionals use Intel's products to create innovative computing and communications systems. Intel values its customers, and makes excellent customer service, employee and shareholders relationships its mission by being the primary hardware and software supplier in todays digital economy. Intel currently employs 85, 000 employees, and its revenues for 2004 reached $ 34. 2 billion.

There are currently 294 Intel's offices and facilities around the world, making the company 53 rd in ranking on the New York stock exchange. The purpose of this essay is to provide a strategic analysis of the adoption of courses of action to carry out long-term goals and objectives of the company. Michael Porters five forces of industry attractiveness will be used to benchmark Intel's performance and competitive stand in todays technology market. Michael Porters 5 Forces of Industry Attractiveness Each companys positioning perspective is based on a 3 - 4 - 5 framework. This framework includes the following: three generic strategies, four contexts, and five forces of industry attractiveness. Michael Porter has identified five forces that determine industry attractiveness.

Both buyer and supplier power make an industry less attractive from the perspective of the company, because it means the company itself has less power in comparison with its external contacts. Industry competitors determine how much competition the company has to deal with, and the threat of new entrants determine how easy it is for new competitors to emerge. It is also important to keep track of not only competition within the industry in which the company operates, but also other products that may impose a threat of substitution. This implies that all other products that may satisfy the consumer need should be targeted as potential competition. Bargaining Power of Suppliers Intel believes that by conducting e-business it will not only maximize the companys profitability, responsiveness and innovation, but also improve supply chain management and possible acquire new partnerships. Intel builds its internal infrastructure around its products and technologies by handling numerous transactions online, from processing orders, to managing materials, to computing accounts payable.

In fact, more than 60 % of Intel's transactions and 85 % of customer orders are processed electronically. According to David J. Kuck, the author of Platform 2015 Software: Enabling Innovation in Parallelism for the Next Decade, Intel's desire to research and invent is driven by an incentive to take over suppliers by winning their loyalty, and in the future, cut supplier intermediaries completely by selling directly to the consumer. Intel also realizes that electronic devices are becoming more advanced and proactive, generating more reasons for new entrants to enter a competitive industry of computing. According to web INTEL HONORS 17 COMPANIES WITH ITS SUPPLIER CONTINUOUS QUALITY IMPROVEMENT AWARD, Intel has announced 17 winners of the companys most prestigious suppliers on March 15, 2005 in Santa Clara, California. The Supplier Continuous Quality Improvement (SCQI) award is awarded to suppliers for exceptional assurance of quality and excellence in performance.

Some of the 2004 SCQI winners include Dainippon Screen Manufacturing Co. , Delta Design, Disco Corporation, and Hitachi Kokusai Electric Inc. Bob Baker, senior vice president and general manager of Intel's Technology and Manufacturing Group, confirms that Intel awards supplier companies for reducing input costs, constantly improving technology, and providing exceptional customer service. Mr. Baker emphasizes that SCQI awards encourage suppliers to build knowledge of supply costs and methods.

In order to qualify for an annual award, suppliers must score at least 95 % in performance, ability to meet cost, quality, delivery, technology, availability, and goals. [ web Such approach to supplier relationships portrays Intel's understanding of Michael Porters five forces of industry attractiveness. Porter suggests keeping supplier power to the minimum in order to ensure the lowest input costs, highest quality of production, and dedication to the company on the suppliers part. Prof. Gary Hamilton of the University of Washington suggests, Moving jobs from the U. S. to Europe and Asia generates massive restructuring of production worldwide.

Only lowest cost labour can meet set price points and mandatory targets, meaning that producing in Asia becomes more and more profitable for American companies [ web Intel's establishment of more supplier relations with Asian companies helps the company generate profit margins six times higher than American-made goods do. Economists suggest that such approach lowers the U. S. rate of inflation by lowering costs and increasing productivity, while increasing bottom-line profits for the company. Intel decreases supplier power by giving the Asian manufacturers specifications for the American market, thereby building supplier dependence; in return, Asian suppliers learn how to export to the U. S.

market through large companies like Intel. Such alliances allow Intel to establish supplier loyalty and move suppliers decisions away from price. Bargaining Power of Buyers Since fabricating costs were reduced by 30 %, input costs were reduced as well, which allowed Intel to achieve economies of scale. As defined by World Bank, economies of scale is the effect on unit cost of producing large quantities.

In distance education, for example, the larger the number of users of a course or the larger the number of users of the system, the lower the cost for each person. [ web By reducing input costs, Intel is now able to produce more products and acquire more profits, without increasing market prices for consumer. As a result, buyers power has decreased indirectly through lower input costs, allowing customers to buy more with their money. In addition, Intel increasing number of partnerships with Asian suppliers reduces buyer power even further by offering consumers products that are the same quality as the American-made brands, but because of low manufacturing costs, become significantly cheaper for consumers to purchase. Threat of New Entrants & Threat of Substitutes Intel is a world-leading manufacturer of technology that has established its competitive advantage through a massive operations scale, assertiveness associated with factory networks, and consistent execution of operations worldwide. There are 11 fabrication facilities and 6 assembly and test facilities worldwide. According to Intel's 2004 Annual Report to Shareholders, Intel spent $ 3. 7 billion in 2003 on capital investments in manufacturing capacity and manufacturing efficiency.

Along with additional expenditures in manufacturing, Intel has invested over $ 4. 4 billion on Research and Development in 2003. The company undertook such action to insure product differentiation and foundation for future growth. Intel's investment is focused on overcoming technical barriers impeding companys manufacturing and product plans. Such approach is reflective of Michael Porters suggestion to reduce threat of substitutes and threat of new entrants.

By investing in Research and Development, Intel will be able to improve its current product quality, thereby reducing the risk of customers switching to substitutes offered by other companies. In addition, Research and Development will allow Intel to invent new products of high quality that will create barriers to entry to new companies. A well-established company with a well-known name that is introducing new products into the market is more likely to attract new customers and retain old customers, than an unknown firm that has just made its way into the industry. Furthermore, Intel realizes that rapid advances in design and manufacturing technologies create potential threat of substitution to the company. In addition, Intel is rapidly evolving its microprocessor architecture to support increasing demands established by even changing consumer market. Intel wants to utilize chip-level multiprocessing by introducing Platform 2015, which will dramatically improve performance without using too much power and heat.

Intel is looking to incorporate rich and diverse communication capabilities, and introduce advanced power management, in order to minimize threat of substitution as well as bring the amount of new industry entrants to the minimum. Intel is working hard to live up to its promises of better quality and affordable prices. In order to sustain old customers and obtain new ones, Intel will have to put in a lot of effort into the development of Platform 2015. Customer satisfaction is expected to influence buyer purchasing power by meeting new demands for programming models, performance and capabilities of computer software.

According to David J. Kuck, Intel Fellow and Director, Parallel and Distributed Solutions Division Software and Solutions Group Intel Corporation, new applications will meet some diverse human activities and concerns for: Enjoyment: Games, hobbies, puzzles Education: Learning at all levels Existence and origins. Genealogy, psychological or religious questions Necessities and daily concerns. Financial, interpersonal relations, personal exposure to an epidemic [ web All of the functions of the new software introduced above will not only allow Intel to ensure its protection against competitors entrance into the industry, and well as substitutes will not pose a significant threat as well due to Intel's product superiority and reasonable pricing. Competitive Rivalry between Existing Companies Intel realizes that computers impose a profound effect on business and society, and that over the next 10 years nearly 10 billion people will be members of computer and Internet community. Such change will lead to intense rivalry between already existing companies in the industry.

For that reason, Intel is introducing changes already, one of which includes a conversion of the 200 mm silicon wafers to 300 mm silicon wafers, which also leads to cut downs in chip fabricating costs by at least 30 percent. Such approach demonstrates how Intel is starting to reduce industry competitiveness through introducing innovations to its already existing profitable products. Intel is determined to introduce a new way to experience quality through reasonable prices by increasing chip efficiency. Conclusion On a final note, it is important to emphasize the importance of Michael Porters five forces in any business. It is crucial for any company to constantly evaluate itself against its competitors to create room for improvement, innovation, and additional customers.

Intel is a successful technology company that has a well-established reputation of being number one quality provider of todays latest innovations in technology, computing, and communications. Through its use of Porters five forces, Intel is able to minimize the number of industry competitors, create barriers to enter to new industries, eliminate threat of substitutes, decrease supplier power, and most importantly, increase buyer power to the maximum by providing exceptional quality combined with reasonable price. Bibliography: Rather, Justin, et al. Platform 2015: Intel Processor and Platform Evolution for the Next Decade, Intel Corporation, 2005. web web Supplier Quality, web Technology@Intel Magazine, web NYSE, New York Stock Exchange, web Intel Corporation, web web:


Free research essays on topics related to: supplier power, porters five forces, york stock exchange, intel corporation, research and development

Research essay sample on Porters Five Forces York Stock Exchange

Writing service prices per page

  • $18.85 - in 14 days
  • $19.95 - in 3 days
  • $23.95 - within 48 hours
  • $26.95 - within 24 hours
  • $29.95 - within 12 hours
  • $34.95 - within 6 hours
  • $39.95 - within 3 hours
  • Calculate total price

Our guarantee

  • 100% money back guarantee
  • plagiarism-free authentic works
  • completely confidential service
  • timely revisions until completely satisfied
  • 24/7 customer support
  • payments protected by PayPal

Secure payment

With EssayChief you get

  • Strict plagiarism detection regulations
  • 300+ words per page
  • Times New Roman font 12 pts, double-spaced
  • FREE abstract, outline, bibliography
  • Money back guarantee for missed deadline
  • Round-the-clock customer support
  • Complete anonymity of all our clients
  • Custom essays
  • Writing service

EssayChief can handle your

  • essays, term papers
  • book and movie reports
  • Power Point presentations
  • annotated bibliographies
  • theses, dissertations
  • exam preparations
  • editing and proofreading of your texts
  • academic ghostwriting of any kind

Free essay samples

Browse essays by topic:

Stay with EssayChief! We offer 10% discount to all our return customers. Once you place your order you will receive an email with the password. You can use this password for unlimited period and you can share it with your friends!

Academic ghostwriting

About us

© 2002-2024 EssayChief.com