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Sales & Distribution Management: Case Study of Intel Incorporation

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Presentation includes all aspects of Sales and Distribution of Intel Corp. SWOT Analysis in depth and 4C & 2S concept of distribution.

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Sales & Distribution Management: Case Study of Intel Incorporation

  1. 1. INTEL Corporation Sales & Distribution: IT-Industry Gaurav Singh Bisen MBA-Tech Program-Marketing NMIMS University
  2. 2. Presentation Flow I.T Industry in India Why Intel? SWOT Analysis Intel’s Product Line Sales Organization & Structure Buyer-Seller Interface Sales Forecasting Intel’s Distribution Channel Conclusion & References
  3. 3. I.T Industry in India. Major Components GDP Revenue Campaign IT Services & BPO 7.5 % till now. More than $48 Billion Digital India Campaign
  4. 4. About Intel Corporation. Market Leader in Microprocessors & Chips Headquarters in St. Clara, USA. High Value Add in India. No Manufacturing 11 Locations in India.
  5. 5. Intel Market Share 2014 F Company Headquarte rs 2014 Total 1 Intel U.S. 51368 2 Samsung South Korea 37259 3 TSMC Taiwan 25088 4 Qualcomm U.S. 19100 5 Micron + Elpida U.S. 16614
  6. 6. SWOT Analysis- Intel Strengths Weakness OpportunityThreats
  7. 7. Strength-Intel • Acceptance • Largest share around the world • Almost every brand which makes computer is using Intel product. • F a c t : P r o v e d i n F i n a n c i a l R e p o r t 2005-2014. • Fact: Intel is a top l e a d i n g i n S t o c k Details in 03 April 2015 • Highest in invest on R&D. • R&D played a very crucial role in the success of Intel brand value. • F a c t : I n t e l , t h e highest spending for R&D for 2013-2014. • Easier for the new p r o d u c t t o b e accepted by the market. • design and develop next generation product . • Gained trust from thousand customer b y p r a c t i c i n g “Industry Standard Research & Dev.Market Value & Share Largest Cust. Base
  8. 8. Weakness-Intel • Accused of using divisive strategies in defense of its market position against its competitors. • Retail prices are higher compared to competitors. • Major weakness is downside trends of PC sales in the recent years. Price SensitivityWrong Market Positioning Dip in Sales of PC
  9. 9. Opportunity-Intel • Keep customer as they are first preference and make changes on regular basis • R e l a t e d diversification would prove to be a huge success: cellular or broadband portion. • Evidence: Intel aware AMD is one of the BIGGEST competitor and that is why Intel keep moving forward and the result where I n t e l g a i n t h e market share of 80% (+/-) and put Intel as competitive advantage. DiversificationCustomer Preference Continous Improvement
  10. 10. Threat-Intel • Mobile and Smartphone chips like ARM may destruct Intel PC business. • Google is planning to make its own ARM- based processor • Cellphones can perform the same task as of PCs Threat from GOOGLEWell established Competitors Increasing Cell-phone Market
  11. 11. Product-Mix INTEL Processors Mobile Devices Boards Chipsets Network Product Server Product Intel Core (i3,i5,i7) Value Processor Intel Xeon Intel Quark Pentium Celeron Intel- Atom- Processor- Z3570 Intel- Atom- Processor- Z3736F Intel- Atom- Processor- Z3530 Intel- Atom- Processor- Z3736G EDISSON GALELIO Server Chipset Workstatio n Server PC Chipset Server board RAID I/O device Adapters Controllers Switches Optics Cables
  12. 12. Design by Management-Hierarchy CEO Brian Krzanich CFO Stacy Smith President Marketing Human Resources Legal and Secretary Finance Treasurer Client Computing HR and Talent Associate Legal and Privacy Sales Staff
  13. 13. Sales Organization and Hierarchy A strong partnership was required between Intel Sales and Marketing and IT leadership for this collaboration. Intel IT implemented a social collaboration platform that enables sales teams to: •Discover content and people. •participate in focused & relevant discussions •Speeding decision making.
  14. 14. Sales Efforts by Intel’s Team Developed a sales collaboration model Evaluation and selection a social collaboration platform Engaged employees through Proof of Concept Employee Transition & Change Management
  15. 15. Buyer-Seller Interface INTEL OEM ODM Others Hewlett-Packard Dell Computers SuperMicro Quanta Source- http://www.intc.com/intelAR2011/business/marketing/
  16. 16. Sales Forecasting-Intel Source- http://www.applematters.com/article/mac-sales-its-all-about-the-chips/P15/ Short Product Lifecycle High Manufacturing Lead Times Derived Demand
  17. 17. Ingredient Branding-Intel + + +
  18. 18. Information Aggregation Mechanism
  19. 19. Intel’s Sales & Distribution Channel The concept of 4C and 2S 4-C 2-S COMPETITORS CHANNELCOLLABORATORS CUSTOMERS SUBSTITUTES SUPPLIERS Raw Materials - Silica, Plastic Reduce Instruction Set Computer: Alternative of Intel Chipset
  20. 20. 4-C’s for Sales & Distribution (INTEL) COMPETITORS CHANNEL COLLABORATORS CUSTOMERS AMD Google Motorola Cycrix Apple Dell HP Toshiba DIRECT INDIRECT Sales Force, Mail, Telemarketing, Some Internet/Catalog, Company Store Stores (department, convenience, supermarkets, Some Internet/Catalog (e.g. Askul) OS Software
  21. 21. 4C & 2S Structure-Intel. IntelSuppliers Competitors Substitutes Channel Customers E N D U S E R Direct C H A N N E L Software Providers • OS • Application CollaboratorsLicensees -IBM -Others RISC: SUN Microsystems KYOCERRA GOOGLE, AMD, MOTOROLA, CYCRIX Retailers & Dealers: • Amazon • Snapdeal - Flipkart - Jumbo - Croma - Brand outlets APPLE,DELL, HP, TOSHIBA
  22. 22. Intel: In News ❖ Intel HDMI Dongle- Plug & Play- Windows 10. ❖ Intel’s Atom Processors: Failure. ARM rated for Mobile Devices on Top. ❖ Marketing & Branding: ❖ Brand Ambassador: Jim Parson aka Sheldon Cooper.
  23. 23. THANK YOU Aditi Jain Ankit Joshi Sanchit Luthra Vaibhav Makkar Parag Samant Gaurav Singh Bisen

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