1. Welcome EverybodyWelcome Everybody 
Name : Md. Mozahidul Islam Sikder
Id. : 2013121018
Program : HND in Business

2. About Intel: An Intelligent Company
 Integrated Electronic Corporation
 Founded on July 18, 1968
 Largest semiconductor chip producer in the world
 Manufactures the processors that are used in the majority of laptop computers and makes many other
devices that relate to computing and communication
 Biggest customers are Hewlett-Packard and Dell
 According to Tech Report, In Q2 2013, Intel achieved a net income of $2.4 billion on $12.9 billion, plus or
minus $500 million.

3. Market Structure
 Perfect competition: Large no. of buyers and sellers, no market power.
 Monopoly : There there is only one provider of a product or service.
 Monopolistic competition: Many producers and many consumers but competitive product
 Oligopoly : Buyers are many, sellers are few, and competition is high.
 Duopoly : Two companies own all or nearly all of the market for a given product or service.

4. There are all about 2 main and majorThere are all about 2 main and major Processor's Manufacturing Company.Processor's Manufacturing Company.
They are :They are :
Intel andIntel and
AMD (AMD (Advanced Micro Devices)Advanced Micro Devices)
An another also well known company named ARM (ARM architecture) which isAn another also well known company named ARM (ARM architecture) which is
used for mobile processor technology.used for mobile processor technology.
So,So, IntelIntel can be said as acan be said as a DuopolyDuopoly Market Structure. Because, There are onlyMarket Structure. Because, There are only
two Companies in the market with same product or same services.two Companies in the market with same product or same services.

5. Core competencies:

6. Porter’s five forces model:Porter’s five forces model:

7. Bargaining Power of Suppliers :
 Abundance of suppliers : With thousands of suppliers for Intel to
work with and negotiate with, each supplier has little negotiating
power and Intel has the upper hand when making negotiations
 Suppliers have few alternatives : With few alternatives to sell
to, Intel's suppliers have less bargaining power

8. Bargaining Power of Customers
 Limited buyer information availability: When buyers have limited information, they
are at a disadvantage in negotiations with sellers. Limited buyer information positively
affects Intel.
 Large number of customers: When there are large numbers of customers, no one
customer tends to have bargaining leverage. Limited bargaining leverage helps Intel
 Limited buyer choice: When customers have limited choices they end up paying more
for the choices that are available. Limited buyer choices are a positive for Intel.

9. Intensity of Existing Rivalry
 Relatively few competitors :Relatively few competitors : Few competitors mean fewer firms are competing for the sameFew competitors mean fewer firms are competing for the same
customers and resources, which is a positive for Intel.customers and resources, which is a positive for Intel.
 Large industry size:Large industry size: Large industries allow multiple firms and produces to prosper withoutLarge industries allow multiple firms and produces to prosper without
having to steal market share from each other. Large industry size is a positive for Intel.having to steal market share from each other. Large industry size is a positive for Intel.
 Very few rivals:Very few rivals: Intel faces very few competitors in the market of microprocessors, it alsoIntel faces very few competitors in the market of microprocessors, it also
enjoys very large market share in this sector. Intel's direct competitors is AMD with approx.enjoys very large market share in this sector. Intel's direct competitors is AMD with approx.
19.5% market share, Qualcomm and other has less than 0.5% and Intel controls 80%. 19.5% market share, Qualcomm and other has less than 0.5% and Intel controls 80%.

10. Threat of Substitutes
 Substitute has lower performance: A lower performance product means a customer is less likely to switch
from Intel to another product or service. … This qualitative factor will lead to an increase in costs.
 Substitute is lower quality: A lower quality product means a customer is less likely to switch from Intel to
another product or service.
 Substitute product is inferior: An inferior product means a customer is less likely to switch from Intel to
another product or service
 High cost of switching to substitutes: Limited number of substitutes means that customers cannot easily
switch to other products or services of similar price and still receive the same benefits.
 Limited number of substitutes: A limited number of substitutes mean that customers cannot easily find
other products or services that fulfil their needs. Limited substitutes are a positive for Intel.

11. Threat of New Competitors
 Entry barriers are high: When barriers are high, it is more difficult for new competitors to enter the
market.
 High capital requirements: High capital requirements mean a company must spend a lot of money in order
to compete in the market.
 Advanced technologies are required: Advanced technologies make it difficult for new competitors to
enter the market because they have to develop those technologies before effectively competing.
 Patents limit new competition: Patents that cover vital technologies make it difficult for new competitors,
because the best methods are patented.
 High switching costs for customers: High switching costs make it difficult for customers to change which
products they normally purchase, due to costs.

12. Elasticity of Demand:Elasticity of Demand:
The Demand will be change with the change ofThe Demand will be change with the change of
demand …..demand …..
Elasticity > 1 Elastic DemandElasticity > 1 Elastic Demand
Elasticity < 1 Inelastic DemandElasticity < 1 Inelastic Demand
Elasticity = 1 Unit ElasticElasticity = 1 Unit Elastic