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Intel Consulting Project

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Executive Summary:
Intel is one of few companies that remains exceptionally successful while maintaining a
first place spot for decades, leading the rest of the industry. Intel has managed to stay ahead of
their biggest competitors while surpassing others in the industry due to their constant push for
innovation. They successfully listen to their customers and uphold their brand image of leaders
in innovation and creativity. However, despite all of Intel’s successes over the years, the idea that
no company is perfect is not dismissed as there is always something to be improved upon.
Therefore, it is necessary to acknowledge these flaws and accept them so they can be fixed and
Intel can flourish more than ever before.
To be more specific, there are some marketing opportunities Intel can take advantage of
to spread their reach further. After examining each aspect of the company in great detail, it has
been discovered that, overall, there are four areas of weakness for Intel regarding its marketing
efforts. These four areas are: brand awareness, Intel’s outreach events, the mobile device
industry, and appealing to older generations. Addressing each of these areas of weakness will
strengthen the company as a whole and increase the customer base significantly. Currently, Intel
is struggling to maintain brand awareness, which is no easy task for a company that produces
products so advanced the general public has a hard time grasping. It becomes even more
complicated because these consumers never come in contact with the actual products since the
processors are hiding within a frame, powering their laptops, desktops, tablets, etc. The next area
where Intel struggles is their outreach events, not necessarily the events themselves, but how
they choose promote these events. Intel participates and holds a copious amount of positive
public events, however, Intel is not gaining the attention it deserves and that is due to a lack of

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promotion in the general public’s view. Another weakness of Intel is their slow and almost
unnoticeable effort to transition into the mobile device industry. This industry has been rapidly
increasing yet Intel still has not yet taken full advantage of this opportunity. Finally, the last
struggle for Intel, along with any other tech company, is appealing to older generations. There is
a whole, virtually unaffected customer base available to any tech company that can breach the
information gap regarding technological devices.
Therefore, with these four weaknesses being acknowledged, Intel should view them as
opportunities and once they are improved upon they can push themselves even further ahead of
their competition. We have been able to provide some solutions to these issues, which will be
expanded on in the overall recommendation section. First is to combat the brand awareness by
dissecting current TV advertisements and releasing new commercials that establish Intel once
again, as they did in the past, for this new generation that is unfamiliar with Intel and its
products. This will also help Intel’s next weakness, promotion of outreach events, because
people will be more knowledgeable about Intel and be encouraged to read about Intel’s excellent
charitable events and programs. Next, Intel needs to take advantage of the growing mobile
device industry and begin supplying their chips to put in smartphones, while advertising the
benefits of having “Intel Inside.” Lastly, Intel can push to teach senior citizens about their
company and more about how technology works by offering informational programs to make
them more comfortable using a technological device on their own. By implementing these few
suggestions and acknowledging that even a company as successful as Intel can have flaws, every
weakness has the ability to be nurtured and shaped into a strength with enough creative ideas and
determination.

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Table of Contents:
Introduction ………………………………………………………………………… 5
Analyzing Needs and Trends in the Marketing Environment
Demographic Environment ………………………………………………………… 7
Economic Environment ………………………………………………………… 9
Natural Environment ………………………………………………………… 15
Technological Environment ………………………………………………………… 17
Political/Legal Environment ………………………………………………………… 19
Social/Cultural Environment ………………………………………………………… 22
Recommendations for this section ………………………………………………… 25
Consumer Markets, Competition, Segmentation, and Positioning
Company ………………………………………………………………………… 27
Markets ………………………………………………………………………… 36
Competitors/ Competitive Rivalry ………………………………………………… 39
Customers ………………………………………………………………………… 42
Recommendations for this section ………………………………………………… 47
Product and Place Strategies
What products are available? ………………………………………………………… 50
Product Profile ………………………………………………………… 53
New Product Development ………………………………………………………… 62
Channels of Distribution ………………………………………………………… 65
Recommendations for this section ………………………………………………… 70
Promotion Strategies and Pricing Strategies
Marketing Communications Mix ………………………………………………… 73
Diagnostic Advertising Profile ………………………………………………… 77
Diagnostic Sales Promotion Profile ………………………………………………… 82
Public Relations, Direct Marketing and Internet Promotions………………………… 85
Current Pricing ………………………………………………………… 90
Recommendations for this section ………………………………………………… 93
Overall Recommendations ……………………………………………………….... 94
Citations …………………………………………………………………………………….. 100

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Introduction:
We are the consulting team who has analyzed and researched Intel’s business products,
marketing strategies, target market, sales promotions and much more. We researched both Intel
and its main competitors by examining online articles, company postings, customer reviews,
published documents and a multitude of websites. After all this research, we have compiled
information into this document along with our recommendations for improvements. Our final
and most valuable recommendations for Intel are concluded at the end of this analysis. While
Intel has had a long history of successful innovations and technology advancements, we believe
Intel needs to consider these recommendations in order to stay competitive in the ever changing,
fast paced world that we live in.
The following document will start by analyzing the needs and trends of the marketing
environment, followed by the section on ​consumer markets, competition, segmentation, and
positioning, then the product and place strategies, and finally the promotion strategies and
pricing strategies. We concluded this analysis with our final recommendations and solutions for
these problems.

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Analyzing Needs and Trends in the Marketing Environment Team Assignment #1
Demographic Environment
Intel is a company with products that appeal to a wide variety of consumers, from major
corporations to young children. Intel’s most popular line of product are their processors. Anyone
who owns a computer, has a processor and with little competition many people use Intel
processors and might not even realize it. In 2014, Intel controlled 82.7% of the market share in
desktop computers (Kay). It should be important to continue to dominate the market share over
AMD, but this hasn’t been seen as a huge issue for Intel. Intel should be focused on getting their
products in the hands of people that generally wouldn’t buy them. In addition to simply finding
their target market, there are many factors and obstacles Intel must overcome. The high demand
for their products creates challenges such as obtaining the raw materials required. Intel will need
to take all of these factors into consideration to maintain the success of their company. In this
analysis, Intel will be examined on 5 different levels; first, the demographic environment,
followed by the economic environment, then the natural environment and technological
environment, then the political/legal environment and finally the social/cultural environment.
Age is a huge demographic factor in the use of computers and Intel products. In 2013,
over 92 percent of people aged 15­44 years old had a computer in their household. However,
only 65.1 percent of people 65 years or older had computers in their household (File and Ryan).
This creates a pretty large market that Intel is missing out on. It would be very beneficial for
Intel to introduce their products to those who are hesitant to adapt to newer technology. Studies
have shown that technology can actually be beneficial to the health of older people. The
tendency to experience loneliness and feelings of isolation are not uncommon in this

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demographic ("The Potential Of Technology"). Through the use of the internet and social media,
older generations can gain tools to combat these problems.
Another very important demographic factor is household incomes. In 2013, people with
incomes of over $50,000 had computers in over 92 percent of households. In comparison, only
62.4 percent of people with incomes under $25,000 had computers in their households (File and
Ryan). Seeing this comparison, Intel needs to make stronger efforts in advertising and with
manufacturers of computers to target those with lower incomes. Intel currently offers a multitude
of processors at different price points, therefore appealing to all income levels, which is a smart
move. ("Intel® Processor Numbers") Google offers a Chromebook laptop for only $150 which
includes a lower end, Intel Celeron processor. The issue with this, however, is that many aren’t
familiar with the new Google operating system included with these computers. Intel would
benefit from working with Google to create awareness of their new line of computers. They
could accomplish this by doing workshops, informative sessions, video demos, etc. Consumers
looking for computers at a lower cost want to make sure they are still getting a product of good
value with an easy operating system.
While age and income seem to be the two largest factors in Intel’s demographic
segmentation, they are not the only factors of importance. Gender doesn’t look to play a major
role on the surface as 88.7 percent of males have a computer in the household versus 88.0
percent of females with a computer in the household – a pretty minimal difference (File and
Ryan). However, Intel has broadened their views on gender roles in computers in the aspect of
gaming. To get an idea of the gender dominance displayed in video games, 70 to 96 percent male
attendance in 2014 for the eSport video game competition (Johnson). Aware that women are

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generally not known to play video games but they make up a significant portion. ("More Women
Play Video Games") They have seen a growth in woman playing videos games and they has
jumped on this opportunity to reach out to this new market. This is a very positive move as they
are bringing awareness to their brand, which leads to consumers buying more expensive
processors.
Another important factor is the different social classes. This is especially evident when
looking at a recent study that shows 70 percent of college students use Macintosh computers
over Windows ("Macs For the Win for College Students"). Of all the operating systems being
used, only 10.9 percent were Macintosh in August of 2015 ("OS Platform Statistics"). It isn’t
easy to narrow down the main reason why Macintosh appeals to college students to such a high
degree but our research concluded the following.​ ​Macintosh is well known for its design and
ease of use, and millennials has come accustomed to Mac computers from a young age. ("Why
Do People like Apple Products") Their computers are infamously known to have a much higher
price point than their competitor, Windows. Considering Macintosh laptops has been exclusively
using Intel processors for about a decade now, it would be very beneficial to work with Apple in
creating more duel marketing strategies that aligns Intel and Macintosh in consumer's
perspective. Apple does not use this type of duel marketing, but it may actually be beneficial
because the users who choose PC over Apple may switch to Apple if they knew the processors
inside the computer. By marketing with an expensive brand like Apple and a less expensive
brand like Asus, Intel could appeal to different social classes through different product names.
Recognizing the demographics is an important step to find their target market, but it is just one
factor of Intel’s success.

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Economic Environment
The demographics that Intel appeals to have distinct traits that help the company sell
products which bring the analysis to the next section which is an analysis of the Economic
demographic. Economically, over the years that Intel has been in business, they have been very
successful; however they have seen their ups and downs like any other company. Intel is a
publicly traded company meaning that the stockholders own the company, but they elect a board
of directors to run the company on their behalf. The Intel stock is located in the NASDAQ sector
of the stock market in America; this is generally where the high tech companies congregate.
("Intel Corporation") Over the life of the stock on the market they have seen six stock splits.
("Intel Stock Split History") A stock split is when a company cuts the price of their stock,
normally in half calling it a 2 for 1. This happens when a company’s stock gets too high for
normal consumers. A split cuts the price so that more people are willing and able to purchase
stock in the company in turn producing more capital for a company. ("What Is a Stock Split?
Why Do Stocks Split?") This is exactly what Intel did in the first thirty years of the company’s
life. They started in 1987 and Intel issued was actually split it as a 3 for 2 options. From there,
Intel split the stock multiple times as the share price rose. ("What Is a Stock Split? Why Do
Stocks Split?") Finally, in July 31, 2000 they split the stock again and unfortunately the market
crashed. This crash was called the Dot Com boom. ("Dotcom Bubble Definition | Investopedia")
Technology was growing rapidly in the 1990’s. Everyone was invested in technology and new
internet startup companies like Yahoo, Sun, and of course Intel. However, in 1999 things started
to become very brittle around this area of the stock market. Then in March of 2000 there was a
large sell off of stock in the technology sector. This triggered people to sell rapidly to keep from

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losing money, hence creating a boom and the stock market pullulated. ("CHM Revolution")
Intel, after this crash, has seen a relatively normal pattern of up and down depending on the
markets growth.
Recently, Intel has seen a consistent price in their company’s stock, but what makes it
rise and fall? First, the company will rise and fall in a sort of relation to the NASDAQ stock as a
whole. For example, recent stock movements in mid­August show a direct relation to the
company’s decline in price relative to the NASDAQ decline. The decline in the price was due to
the unrest in the Chinese stock market. (Thompson and Riley) The NASDAQ stock fell from
$5091.70 to $4506.49 on August 17th to the 26​th​
. ("NASDAQ Stock Price") Correspondingly
Intel fell from to $29.08 to $25.87 from August 17​th​
to the 25​th​
. ("Google­ Intel Stock Price") In
the days following the decline, there was a period of growth. The reason for this sudden recovery
is unclear to analysts, but it is clear that the NASDAQ stock and the Intel stock will follow the
same general pattern.
The second factor that affects Intel’s recent stock movements is the large corporations
that Intel supplies to, for example HP. Hewlett Packard is known for making laptops, desktops
and printers for the general public, and Intel’s largest customer. ("Inside Intel: A Look At The
Mega Chipmaker") ( "HP® Official Site"). To show the correlation between Intel and their large
customers like HP, one can look at the event on Thursday, September 8​th​
2015 to Friday,
September 19​th​
2015. As HP’s stock price decreased from $28.13 to $26.99 so did Intel’s by
roughly the same amount, $29.08 to $28.52. ("Google­ HP Stock Price")The following day as
HP’s stock rose from $26.99 to $27.59 and so did Intel’s, from $28.52 to $29.50 ("Google­ Intel
Stock Price."). This sharp decrease then increase in the company’s largest supplier had a direct

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correlation to Intel’s stock price. If Intel’s largest customer stops buying Intel processors than
Intel as a corporation will suffer. Intel is a large corporation and it has hands in many different
companies, but a very large stake in a few. Having a wide base can be a good thing for a
company if one of the companies were to start failing then they have companies to fall back on.
When examining Intel’s customers, having ⅙ of the company’s product going to a single supplier
can be dangerous for the future. ("Inside Intel: A Look At The Mega Chipmaker") Intel should
continue to find more and more companies to supply to, just to improve their stability in the
market.
Since the Intel Corporation supplies products to other businesses not end users; this
company markets to establishments like Apple, Dell, HP, etc. These firms see the same
fluctuations in the general economy as their consumers so in a way this analysis is for both the
company and the consumers for which the end product finally reaches. First, the customer’s
income is extremely important to Intel’s overall success. The disposable income for the
consumers of Intel products can vary and therefore can affect the company’s brand. However,
since the items that hold Intel Microprocessors are normally luxury or nonessential goods, if the
economy crashes then so does Intel’s sales. This is proven by comparing the United States GDP
per capita in times of financial poverty and financial prosperity. In 2009, after the United States
was declining into a recession, the GDP per capita was estimated around $40,000. Intel’s stock
price in the beginning of 2009 was $12.41. ("GNI per Capita") Whereas currently, the GDP in
the United States is around $55,000 and the Stock price holds at around $29. ("GNI per Capita")
("Google­ HP Stock Price") The end users disposable income had shrunk in 2009 and luxury
items were not an option for the family budget. This, along with the reduction of the entire

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economy, decreased Intel’s stock greatly. As the economy has prospered and more money people
have to spend on electronics, Intel’s company has recovered. If Intel wants to ensure that it will
succeed in all types of markets, they need to create microprocessors, electronic devices, and such
at a cheaper rate to reach a broader audience during times of economic scarcity.
The same follows for the consumer’s employment and job security. Intel’s products will
sell as long as customers are willing and able to buy their rather expensive products. This can be
shown by comparing Intel’s stock price in relation to consumer’s employment. For example, the
unemployment level in the United States, according to the Federal Bureau of Labor Statistics,
was around 8.0% in the middle and end of 2012. Intel also saw a steady decline in stock price
during this time period ("Databases, Tables & Calculators by Subject"). Now the unemployment
rate is sitting around 5.1% and Intel’s Stock has seen a positive trend. ("Databases, Tables &
Calculators by Subject") The end users of Intel products rely heavily on savings, debt and credit
available to them, since these are luxury items and can cost a great deal of money. The Federal
Reserve, also known as The Fed, controls much of what goes on in this area of the economy.
They control the supply of money to the public and control the interest rates. In the recent
decline in Intel’s stock price in August, as discussed in an earlier section, the fall can be
contributed in a way to the uncertainty of The Feds interest rate decisions. (Thompson and Riley)
These factors: income, employment and credit available, play a major role in the success of Intel.
These external factors can help and hurt Intel. They may have to rethink quality in order to stay
competitive with other microprocessor companies, but this can also cut into the brand’s status
and appearance to the public.

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Intel as a company can only do so much when it comes to the stock market. The stock
may increase and decrease randomly based on consumer preferences, external factors and future
projections. They can however, release new information about where the company is headed to
encourage new buyers and reinsure existing shareholders of the company’s longevity. Due to
recent ups and downs Intel has released several statements considering its future. The first was
the announcement for the investment of 67 million dollars into obtaining startup companies in
China. This shows the company’s growth potential in the near future. ("Intel Corporation (INTC)
To Invest $67 Million In Eight Chinese Startups")
In very recent news about the hacking and controlling of citizens cars, some powered by
Intel processors, Intel released a statement to address the issue. This stated that they would be
creating an Automotive Security Review Board. This board "will perform ongoing security tests
and audits intended to codify best practices and design recommendations for advanced
cybersecurity solutions and products to benefit the automobile industry and drivers ("Intel
Commits to Mitigating Automotive Cybersecurity Risks")." This statement reassures the public’s
trust in the company’s product and service, and overall these releases will hopefully increase the
stock price and create a strong, more profitable company as a whole. Intel should continue to
release statements like these so that the brand as a whole thrives. If customers see that the
business is expanding, that they are addressing problems quickly and that the company as s
whole has a future; then more people will be willing to invest.
After examining the economic environment that Intel finds itself, there are a few
recommendations that one could make for the expansion and growth of the company. Previously
stated; expand customer base, create a way to prosper even in times of poverty, and release

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statements that reassure the public's trust. Expanding customer base means extending into mobile
device market not just the personal computer market. Intel’s products are focused mainly on the
personal computer industry, but they have been slacking in the area of mobile smaller devices.
Apple for instance uses Intel processors for their computers but Apple requests compute chips
for their phones from another company. This small device industry is rapidly growing and as
phones grow in capabilities this market will be essential for Intel to be involved with. The last
thing Intel wants to do it continue to make a product that is slowly becoming obsolete.
Natural Environment
Economically, Intel has been thriving, but they will not last if they do not consider
natural and technological changes. Shortages in raw materials, pollution concerns and energy
costs all play vital roles in the overall success of Intel. Most of these factors are out of the
company's direct control, therefore, they must accept and adapt their processes and costs
accordingly in order to maintain an acceptable profitability. Due to the extreme competitive
nature of the industry, Intel must not only focus on the technology of their products but rather the
cost, speed and flexibility as well. It is important for manufacturing to continue providing Intel
with a key competitive advantage over the next decade, which could potentially be compromised
by environmental issues such as shortages or increases in cost.
Intel has experienced numerous shortages over the past decade. They rely on thousands
of suppliers to provide the materials required in order to meet the demand of their products;
however, they sometimes rely on a single supplier or limited number of suppliers in a single
location. (Martinez) This can cause issues if something goes amiss on the suppliers end whether
it be an internal or external issue, because regardless the company will not be able to provide

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Intel with the adequate materials needed in the time allotted. As a result, Intel will not have
another supplier to fall back on and they will not be able to begin the production of their product.
Aware of the importance of keeping a close relationship with suppliers, Intel has made it their
mission to not only establish a trusting relationship, but to also ensure contractual agreements
that will keep their company safe in case of a miscommunication on the suppliers' end. (Intel)
On Intel's website they stated, "​Intel and its suppliers must strive to examine and improve all of
the systems by which we get things done. By making our suppliers an integral part of our overall
quality process, we can build better products right from the start.​ Suppliers must be responsive to
the rapid changes in design and manufacturing strategies. Reducing the time it takes to deliver
materials and services to our manufacturing facilities helps to bring Intel products to market
sooner and to reduce inventory exposure for both Intel and our suppliers" (Martinez). While
incorporating the suppliers into the overall business strategy is smart, Intel needs to ensure that
they have more suppliers to fall back on. Failure to do so could reap disastrous results.
In addition, pollution directly affects the corporation. The dramatic increase in pollution
over the recent years has caused major problems for the company. This and other environmental
changes have led to stricter Federal regulations, which are not ideal for a company that deals
with an abundance of hazardous materials. Since failure to comply with these regulations result
in things such as: large fines, legal liabilities, suspension of production, restrictions of operation
and sales, etc; it is in Intel's best interest to make their production process as energy friendly as
possible. "Failure to manage the use, transportation, emissions, discharge, storage, recycling, or
disposal of hazardous materials could lead to increased costs or future liabilities. Environmental

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laws and regulations could also require us to acquire pollution abatement or remediation
equipment, modify product designs, or incur other expenses" ("Risk Factors").
Due to the extent of the risks, Intel has implemented numerous policies that have helped
increase their amount of energy conservation, renewable energy, and efficient building designs.
Committed to reducing their carbon footprint, Intel has taken important steps to achieve this
goal. "We’ve reduced our greenhouse gas emissions and made significant investments in energy
conservation resulting in savings of 1.75 billion kWh. We have also facilitated the construction
of 18 solar electric installations at Intel locations around the world that collectively generate
more than ten million kWh of clean solar energy per year. Since 2008, we continue to be the
largest voluntary purchaser of green power in the U.S., according to the U.S. EPA’s Green
Power Partnership rankings. We purchased 3.1 billion kWh of green power in 2013, enough to
meet 100% of our U.S. electricity use for the year" ("Intel and the Environment­Responsible
Operations"). While pollution will continue to pose as a threat to Intel, they have begun to enact
solutions that will solve the problem in the long run.
Finally, energy costs are one of the most important factors for Intel because these affect
their net profit. The cost of the energy required to operate their business needs to be reasonable,
or they will be unable to sell their products for a price consumers will be willing to pay. If the
overhead costs are too high, they will inevitably need to make up for it by pricing their products
at a higher cost in order to maintain the same margin of profit. The International Energy Agency
made a statement this week claiming "​The world can expect energy prices to continue their
generally upward spiral in the years ahead if global energy policies remain the same" ​("Energy
Agency Predicts High Prices in Future").​ If this rings true, Intel will need to brainstorm new

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ways to decrease their energy costs or they will find themselves losing profits at a rapid rate.
While Intel has come to this realization and has begun reducing data center power consumption
with DMA Coalescing, which shifts their system components into a lower power state when
network traffic levels and other workload characteristics allow. ​("Data Center Equipment Energy
Consumption")​ This solution alone will only put a Band­Aid on the lingering issue. The
corporation needs to make reducing energy costs a priority if they expect to experience the same
amount of success in the future that they've had in the past.
Technological Environment
Moore's Law, named after the Co­Founder of Intel, explains that the "device complexity
doubles about every 18 months" ("Moore’s Law"). This law began as Intel's rule of thumb and
eventually morphed into the company's guiding principle, motivating them to expend enormous
resources to meet the law's predictions. ("Moore's Law and Intel Innovation")While this
prediction allows for constant change and improvement, it doubles as a threat. Innovation must
be the number one priority for a company in an ever­changing industry. In order to stay
competitive, Intel's products must incorporate the latest technology and functionality, while
remaining reasonably priced. This is a tough balance to find, however, Intel has proven they are
determined to not only find it, but maintain it as well.
Due to the competitive nature of the industry, Intel's products are constantly changing.
The assimilation of smart technology and fashion provides the basis for the newest batch of
products, which came to life in this year's New York Fashion Week. ("Infusing Fashion with
Smart Technology") Intel is attempting to revolutionize the shopping industry by creating a
device that allows a person to try on clothes virtually in a dressing room. The MemoryMirror has

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already experienced success as it has been installed in select Neiman Marcus stores and is
expected to expand into additional stores in the next couple of months. In addition to the
MemoryMirror Intel has created MICA, My Intelligence Communication Accessory, which
incorporates their advanced technology into high­end jewelry pieces. MICA is a beautiful and
intelligent bracelet that provides today's highly connected women with access to text messages,
Yelp, Gmail notifications, Facebook events and Google Calendar through discreet notifications
delivered directly to the wrist. This invention will truly redefine the concept of wearable
technology. ("Opening Ceremony, Intel Take Wraps off Capabilities for MICA") MICA is Intel's
newest design and the first of its kind, which they hope will result in a high demand for
consumers worldwide.
Although wearable technology is still a fairly new concept, Intel does have competition.
Recon Instruments is known for rivaling Google Glass with its own AR glasses,​ Recon Jet​. "The
tech firm also developed heads­up displays and other AR tech marketed as smart sports eyewear.
Now,​ Intel​ will benefit from Recon's discoveries. Intel has just acquired the Vancouver­based
AR company for an alleged $175 million USD. The entirety of Recon's 75­member work force
will now be under Intel's New Devices Group, which focuses on wearable tech. Intel could also
use its newly acquired technology for integration into Internet of Things­ready devices" ("Intel
Invests in Wearables"). Google Glass failed to become the futuristic headset that would catapult
society into the future. However, the Apple Watch saw a much greater margin of success and is
breaking down barriers in the wearables market. So if wearables move from a niche market to
mainstream; then, Intel will have a leg up on the competition from its foresight. This is risky for
Intel as a company, however, because consumers are still wrapping their heads around the idea

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of wearable technology. Therefore, if the majority of consumers do not understand the product,
then you won't have consumers buying it either. While this market has great potential, previous
products have tended to reap results opposite than expected. Intel will need to ensure there is a
demand for their wearable technology products before they spend too much money on the
development of them.
Political/Legal Environment
Due to the high profile nature of Intel, they are forced to deal with a multitude of political
and legal issues. Intel is extremely transparent in regards to their legal issues, political
contributions and sales to government officials. Intel is a company focused on innovation and
success. Therefore, there will always be a competitive market surrounding them along with
buyers that often participate in questionable business transactions.
When handling legal issues, Intel focuses on the outcome of the proceedings and then
assesses how their company will be affected. Once determined, they compose a solution that will
help them recover from any negative backlash. Their website states they "are currently a party to
various legal proceedings" (Legal Proceedings) but that the ultimate goal is to refrain from
harming the company’s financial standing, operations, cash flow, or overall trends. However,
like any legal battle, the proceedings do not always go as anticipated. Intel prefers to do what is
in best interest of their stockholders, employees, and most importantly, their customers so they
can settle such matters with payments that ensure all parties are happy and so Intel can continue
to focus on the innovation and success of their company.
Being the more accredited company, Intel inevitably has to deal with legal issues on the
competitive front, especially since competitors produce processors that are essentially the same

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as Intel’s. Intel has made all of their legal proceedings and previous cases available on their
websites under the Legal Proceedings tab. By doing so, Intel is able to communicate their legal
history with everyone involved, or looking to get involved in the company. When corporations
hide previous legal problems and someone does business with or invests in their company and is
made aware, it is much more damaging to the company’s name than just letting all information
be open to the public. Companies like Intel still have the lead on the market they do because they
established such high trust with their stockholders, employees, and consumers and fight to
maintain it.
An example of a legal issue that Intel has settled in regards to a competitor would be it’s
case with AMD in 2001. The European Commission (EC) began an investigation on Intel after
AMD complained that Intel was using unfair business practices to sell microprocessors. Intel
provided all needed paperwork, yet the decision was that Intel had violated Articles in two
different European treaties and agreements. Intel had been offering conditional rebates and
payments that encouraged customers to buy their x86 microprocessors directly from Intel. By
doing this, Intel was preventing sales to specific rival products. In 2009, when the final decision
was made, a $1.5 billion fine was imposed on Intel. Intel attempted to appeal the decision as they
felt they were not in the wrong, but EC made it very difficult to help Intel move past their
supposed mistakes because there was no clear guideline on how to prevent a misunderstanding
such as this one. Therefore, Intel was forced to pay out in order to maintain their good­standing
company reputation (Legal Proceedings). Many other lawsuits have erupted over the years
involving AMD, however, the others paled in comparison to this one.

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In 2010, Dell had to pay over $100 million in penalties due to backlash of decisions
regarding an Intel and Dell partnership. "Intel and Dell had a deal in place that Intel would pay
Dell in the form of rebates to ensure that Dell would not use computer chips made by AMD in its
personal computers and computer servers" (State Accuses Intel in an Antitrust Suit). In the past,
AMD was producing powerful (and popular) chips at a cheaper price, but Dell stuck loyally to
Intel despite them being slower because Intel had compensated Dell over $1 billion over the
course of 2004­2005. When Dell chose to use AMD as a second supplier, Intel cut the rebates
and Dell ended up having to fluff financial statements to SEC, resulting in the $100 million in
penalties.
While Intel does have many FAQs and their legal proceedings on their website,
researching the company past their initial website will show that in the past, Intel has used their
monopoly power to make illegal threats and other bullying strategies to ensure it stayed at the top
of its market. Lately, Intel has practically taken over the market with not only their monopoly,
but with their better­performing products. The company has not been in headlines lately and has
focused on sticking to their values to better themselves for the people that support Intel.
As far as political contributions are concerned, Intel has a formal policy (Political
Accountability) that states their long­standing practices and decision­making processes, but also
includes their accountability of any activities in the political field. In the United States,
corporations are not allowed to directly fund a federal candidate or specific political party.
However, most states allow corporate contributions to state and local candidates. If a state allows
Intel to make contributions, the company will take advantage of this for increased exposure and

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to share their interests with stakeholders and consumers (Intel Political Accountability
Guidelines).
Intel makes these endorsements for the sole benefit of their company and their standing
with others. The company wants to appease their stockholders and stay engaged in educating
government representatives about corporations. Intel strives to only contribute to those
candidates with similar values, business objectives, and public policy priorities such as
innovation, trade policy, environment and logistics. In the end, Intel simply wants to protect and
enhance their long­term stockholder value. All of the information regarding Intel’s Political
Accountability is pulled directly from the Political Accountability Statement on Intel’s website.
(Intel Political Accountability Guidelines)
Social/Cultural Environment
With an increase in the education of their products, Intel has the ability to cater to their
customers even more than in the past by adjusting to fit both the cultural trends and the societal
transformations arising. Societies and their cultures are constantly changing and molding to fit
the world that is present today. The sociocultural forces of a society, more specifically in the
United States, are always being altered. This alteration is not only caused by an increase of the
population age, but an increase in the variety of ethnicities, rising values encouraging
individualism, and promotion of the entrepreneurial spirit as well. With this in mind, it is
essential that a company bends and reflects these social and cultural facets. One major element
that would affect Intel is the rising population age that resulted from the baby boom after the
second World War. It has been noted that "for the next 18 years, a member of the baby boom
generation – the 78 million Americans born between 1946 and 1964 – will read the age of 62

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every eight seconds " ("Treating Aging Baby Boomers"). Therefore, there are going to be a
surplus of older customers whom have not grown up with technology, especially with something
as advanced as Intel’s microprocessors. Therefore, it would only be beneficial to very few of
them. In addition to this, they are conscious of spending money. In contrast to their lack of
knowledge regarding technology, they are more than aware of any economic collapses lurking in
the upcoming year.
With this in mind, a great solution to combat this would be creating more direct
marketing events. This could include a promotion for seniors to offer discounts for specific
products that Intel makes that are easier to use. In addition, it would be highly beneficial for Intel
to offer classes or have representatives speak with this generation to explain their company,
products, and why these potential customers need Intel inside of their laptop. Once Intel educates
this generation more on how user friendly their products are, they could appeal to this generation
by launching a promotion for grandparents. One example would be to offer a less expensive
model for them to purchase for their grandchildren heading into school that fall or for a
Christmas present. In regards to them saving money, offering simpler, less expensive products
will encourage them to purchase. This generation will be ecstatic that they can use technology
just as well as the rest of their family does and thus will promote for Intel once they are happy
and comfortable with their product.
An aging population is not the only social/cultural change that will affect Intel in the
upcoming years. Another cultural facet is the encouragement of the entrepreneurial spirit. It is
increasingly common to find students striving to own their own business one day or become the
president of a certain company. Many entrepreneurial articles are seeing this trend and one

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specifically found that, "given the new economic reality of our time, more people than ever
before have found the ‘job’ they thought was waiting for them doesn't exist. Others have come to
the conclusion that they would rather create work they love, constructed to fit with their own life
goals" (​"So You Want to Be Your Own Boss").​ This allows for students, typically generation Z,
and the generations around them to set their goals higher and higher and thus they will need the
technology to back them up once they’re there. Intel already does a fantastic job of staying ahead
in the game of innovation with 3D technology, wireless charging, and wireless presentation
capabilities which was evident on the Intel website. However, starting at the root of a business
could be a main focus as well by pushing efforts towards not only promoting the products but to
also promote Intel as an enterprise that can help shape futures.
Intel does already offer many opportunities for students to progress with their company
however, many students are unaware of the programs and scholarships Intel provides simply due
to the lack of direct marketing. With the population being increasingly busy with work, school,
social activities, families, friends, and any other life obligations, they’re finding less and less
time to research which companies will help them the most so it seems common that people stick
with what they know or hear. Now, unless a person is surrounded by tech savvy friends or family
Intel and its products aren’t on the forefront of their mind. Therefore, Intel could have
representatives on campus constantly holding events and offering promotions to students for
their products. In addition to this, Intel can educate students about the internship they provide, all
the scholarships they give out, and perhaps even have some conferences held to reveal the
company success. All this will not only increase the image of Intel as a company that cares but
also put Intel product options in their mind the next time they’re looking for a laptop, tablet, etc.

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Recommendations for this section
In the demographic environment, income is a huge factor Intel needs to consider. They
should begin making products that are much more affordable so that statistic of only 62.4% of
households with an income of under $25,000 can be increased. This would broaden their base of
consumers. Also, if they started making products with less capabilities for less money this could
prepare them to stay competitive if there were to be another financial crisis like in 2008. Instead
of consumers running to another company they would simply buy different Intel products.
Next, for the economic environment, a consistent, growing stock is always important.
First, Intel should release more statement about their company's overall direction in the future.
THis would help reinsure the public that Intel is thriving and ultimately it's a great company to
invest in. Secondly, Intel should keep in touch with the companies associated with them to
ensure they are following similar business ethics and strategies. This will keep a positive and
successful appearance of all the companies working together. This strategy will also help with
the natural environment as well by keeping a close relationship with Intel’s suppliers. Intel can
check in to ensure that their suppliers are always pushing themselves to be the best that they can
be and make their operations more resourceful with in turn will make Intel more resourceful.
As for the technological environment, this is definitely a high point for Intel already since
they have already managed to be the leading company in their industry. So to keep this going, it
would be important for Intel to constantly bring in new engineers with fresh ideas and new
perspectives. Another aspect Intel already does an excellent job on is keeping themselves away
from negative media and politics. It is be important for Intel to ensure it’s best face is always
forward and not allow them to get wrapped up in any negative media by constantly informing the

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public about all the support they provide for the community. Finally, for the social/cultural
environment, all these practices listed above combined with a push to directly speak with the
public will overall help Intel improve their company, continue being the best at what they can,
and branch out into wider range of markets.
By implementing these recommendations for each facet that affects the community, the
demographics, the economy, the natural environment, the innovative technology, the politics and
laws, and society as a whole, Intel will continue to stay above and beyond it’s competition. They
will increase their brand loyalty, brand awareness, and brand attitude.

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Consumer Markets, Competition, Segmentation, and Positioning, Team Assignment #2
The Company
The Intel Corporation began in the year 1968 by Bob Noyce and Gordon Moore who chose
to leave the Fairchild Semiconductor Company and start a new adventure, NM Electronics. The
name would soon change to Intel and their mission was the production of new technologies. The
Intel logo was born in 1969 with its world recognized dropped "e" design. after years of this icon
design Intel ended up changing the logo to the new Intel logo which is shown in the figure
below. (King, Ian) ("Intel Timeline: A History of Innovation")
("Intel Rebranding")
Intel’s mission from the beginning has always been, "​Delight our customers, employees,
and shareholders by relentlessly delivering the platform and technology advancements that
become essential to the way we work and live" ("Intel Mission Statement"). They have
accomplished this mission over the years through multiple avenues. Intel’s first product was a
semiconductor made from a revolutionary design involving an oxide semiconductor. Then "Intel
announces its first product the 3101 Schottky bipolar random access memory (RAM)" ("Intel
Timeline: A History of Innovation"). After a few years of successful research, development and

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production, Intel went public at a price of 23.50 dollars per share. Later in 1971, Intel created the
first microprocessor which would propel Intel into the new age of technology­ the personal
computer age. Intel’s microprocessors were used in the making of the first personal computers in
1975. Over the next 25 years, Intel would produce microchips, processors, and connectors; soon
it would become the largest producer of semiconductors and a household name. ("Intel Timeline:
A History of Innovation") In the early 2000’s Intel would differentiate their products for a
variety of consumers. In 2003, Intel expanded to the cellular and handheld devices. In the
following years, Intel grew into creating chips for a low cost and high energy efficiency. Further
advancements continued in the year 2011 with Intel’s introduction of the Ultrabook, which was a
new mobile computer that featured a touch screen, extended battery life and much more. ("Intel
Timeline: A History of Innovation") In recent years Intel has continued to develop computer
processors, chips and other devices that challenge current technology and strive for cutting edge
innovation.
For years Intel has expanded their product line from semiconductors, to then chips, to
finally making and producing full computers. In the area of microprocessors, Intel creates four
processor options for their customers. The first is the Pentium series, which is the general, most
basic processor you can have. (Sebastian, Linus) The next three are all similarly related and
comparable by looking at the differences. First is the I3 Core Processor, this processor is the
most basic and least powerful of the three options. It will have two core processors, hyper
threading, consume less power, and cost less than the I5. (Sebastian, Linus) The I5 is slightly
different if you are getting it in a desktop or a laptop, but generally all the I5 will have 4 cores,
more memory, hyper threading, improved onboard graphics and turbo boost. The last is the I7

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which has hyper threading, anywhere from 2 to 8 cores, it can also support anywhere from 2­8
memory sticks which all supports this processor’s faster speed, more memory and better
graphics. (Sebastian, Linus) ("Intel Shop")
("Intel+core+processors ­ Google Search.")
Intel also markets their products that their devices are used in by selling desktop computers,
laptops and tablets that are all supported by Intel processors. There are more devices that hold
Intel technology but are not advertised on the Intel website. They sell their processors
individually so that consumers can pick and choose which processor best fits their needs.​ ​("Intel
Shop­ Tablets, 2­in­1s, Laptops, Desktops, Smartphones, Servers")
Intel is expanding its innovation into the betterment of the general public as well as much
advancement for their employees and customers. Intel states, "We’ve reduced our greenhouse
gas emissions and made significant investments in energy conservation resulting in savings of
1.75 billion kWh. We have also facilitated the construction of 18 solar electric installations at
Intel locations around the world that collectively generate more than ten million kWh of clean
solar energy per year. Since 2008, we continue to be the largest voluntary purchaser of green
power in the U.S., according to the U.S. EPA’s Green Power Partnership rankings." ("Intel and
the Environment­Responsible Operations") Not only does Intel devote time and resources to the

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reduction in carbon emissions but they also focus on water conservation. They have invested
over 100 million dollars into the water conservation so saved over 36 billion gallons of water to
this date. ("Our Wastewater Collection Systems")​ ​Along with these investments, Intel looks
internally to see how they could better use their recourses. Ultra­pure water is used in making the
Intel Microprocessors, therefore, Intel redesigned their manufacturing facilities so that the water
could be reused for other purposes.​ ​("Our Wastewater Collection Systems") Since Intel supplies
mainly to companies such as Dell and ASUS that create computers, tablets, etc., Intel should
really push for joint efforts for improving the environment as whole. We believe this will convey
a better message to both the customers and the suppliers affiliated with Intel. Overall these
improvements Intel has made and should make will improve brand loyalty for Intel.
In the area of innovative products and advances in the world of technology Intel has been at
the forefront of visualization and virtual servers. A common problem for companies with large
amounts of data and memory is that they have specific, dedicated machines for each task. Each
processors would control one task but often times not be utilized to its full potential. The idea of
a virtual server that could carry multiple tasks at the same time and distribute the workload
equally so that each was utilizing their full potential, was envisioned and called virtualization.
Intel created chip sets and designs that spread these tasks to maximize the computer's
capabilities.​ ​("Edit Place Overview Page") This leads to cloud based computing for companies of
the future. This simply means that there would be very large cloud based server farms around the
world that companies could log into and use at their own convenience. Their company would
simply be billed for the time used on the servers. This is only made possible by the concept of
virtualization and the idea that their servers can spread tasks equally for the most efficient use of

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time and space.​ ​("Edit Place Overview Page") This concept and developments are extremely
innovative, but they are vulnerable to cyber­attacks. In order to effectively to push for this
innovation Intel and their partners should ensure the safety and security to the general public.
This new innovation is also very green friendly by cutting down excess waste and resources,
therefore they should also look into partnering with environment friendly groups for promotion
efforts.
Intel also encourages creativity and empowering the general public to use technology in
new ways. They provide outlets for teachers to communicate with other teachers to see how to
more efficiently use technology resources for the betterment of their students. ("Intel®
Education: Free Teaching Resources, Tools") Intel also realizes the gap between the generation
of technology today versus the one teachers grew up in, so they provide courses online to help
bridge that learning gap.​ ​("Intel® Teach Elements") Intel provides this type of encouragement
while empowering the younger generation by praising new technology developments made by
kids on their website. They also focus on advancing the education of women around the world.
They promote this push to educate more women by donating and supporting the #62milliongirls
campaign ​ ​("Educate Girls, Change the World") in this area but we think Intel could do so much
more. They have the resources and knowledge to teach and support efforts both around the world
and locally in the fight for a woman’s right to education. They were unclear about how exactly
they were contributing their technology and products to this cause. There has also been a
countrywide push for more women to enter the STEM fields, science, technology, engineering,
and mathematics. To parallel this cause, Intel should focus on supporting more women both
academically and financially in colleges to promote these careers.

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Financially, over the years, Intel has done very well. While examining their financial
analysis Intel stated the following, "Intel Corporation today reported third­quarter revenue of
$14.5 billion, operating income of $4.2 billion, net income of $3.1 billion and EPS of 64 cents.
The company generated approximately $5.7 billion in cash from operations, paid dividends of
$1.1 billion, and used $1.0 billion to repurchase 36 million shares of stock. ‘We executed well in
the third quarter and delivered solid results in a challenging economic environment,’ said Brian
Krzanich, Intel CEO. The quarter demonstrates Intel innovation in action. Customers are excited
about our new 6th Gen Intel Core processor, and we introduced our breakthrough 3D XPoint™
technology, the industry's first new memory category in more than two decades"​ ​("Intel
Corporation ­ Intel Reports Third­Quarter Revenue"). While examining Intel’s stock
performance over the years, we have found a trend of stability. Over the last few years, Intel has
seen increases and decreases similar to many other stocks due to the natural trend of the market.
There is a further analysis of stock price that was explained previously in the first paper under
Economical Analysis. The following picture shows the trends of Intel’s stock​ ​from the past year.
("Google Search­ Intel Stock")

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Since Intel is very dependent on companies like Dell, Apple and Asus; Intel should
diversify their supplier base so that if one company fails their whole company won’t take a huge
hit. This supplier base consists of Dell, Apple, Asus and HP. When asked about investment
potential in Intel, an interview was posted by the Huffington Post explaining reasons why people
should invest. First, the analyst explained that the hesitation to invest could be because Intel
seems to be stuck below the thirty dollar mark. Even though that is the case, she explained Intel
is projected to see top line growth in the next few years. She explains that the profit margins on
the servers are steady and high, which creates stability within Intel’s sales. Additionally, the
transition into the mobile device industry should boost sales and increase traction for the future.
("Why You Should Invest in Intel") This explains and supports that Intel should diversify their
supplier base to the mobile device industry not just the personal computer industry.
Overall the company does a good job creating high quality microprocessors in an efficient
and effective way. They mainly market to large corporations who use Intel’s products in their
finished goods, which is beneficial for customers. The majority of people will never have to
worry about purchasing a microprocessor separately and then installing it into their computer.
The goals of their mission statement align with their company brand and image to the public.
They relentlessly find new ways to innovate their products to keep up with the innovations of
technology in general. With that being said, there are still many ways that Intel can improve and
expand their existing goals to better connection with their customers. These suggestions will be
further explained in the conclusion of this paper under the recommendation section.

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SWOT Analysis for Intel:
Internal
Strengths Weaknesses
❏ Innovative Designs
❏ Huge research and
development team
❏ Very well vetted decision,
they rarely make mistakes in
decision making
❏ Creative products, working
with robots, servers and etc.
❏ Working with new raw
materials other than silicon
❏ Consistent stock price
❏ CEO has a positive rating on
glassdoor. (78%)
❏ Well rounded products for a
variety of customers.
❏ Loyal consumers and buyers
❏ Variety of programs that are
compatible with Intel chips
(which makes the customer
loyal to Intel)
❏ Research and Development
is always a priority and they
are at the forefront of it.
❏ Intel’s commercials are well
known
❏ Intel’s jingle is catchy
❏ Costly to purchase single devices
❏ Confusing to install
❏ Engineer field is shrinking,
digital designing is more popular
than chip design.
❏ Level of technology is extremely
high, finding new employees out
of college is going to be very
hard.
❏ Layers of management
❏ Decision making and innovation
is slow
❏ Huge startup costs for new
factories
❏ Confusing product names
❏ Confusing products in general
❏ Customer service responsiveness
is slow
❏ Raw materials may be hazardous
and environmentalists fight
against it.
❏ Print advertisements reach a
small market for a large price.

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External
Opportunities Threats
❏ Connections with large
mobile phone manufacturers
❏ Large presence in the market
and consumer
❏ Appeal to large consumer
market
❏ Internet of Things (IOT) is
majority inspired by intel
❏ Sponsoring college
competition, not just high
school and middle school
❏ Scholarships for students
who create innovative ideas
❏ Sponsor grad students
❏ No one has claimed the
mobile device industry
❏ Intel’s brand is recognisable
all over the world
❏ Intel can be the first for take
over the other technology
industries, like cars,
refrigerators, or smart TVs.
❏ No clear direction for the
development of microprocessors
in the mobile phone industry
❏ Personal computer industry is
shrinking
❏ Tablet Market is growing but at a
slow pace
❏ Small amount of market share in
the mobile phone industry
❏ Technology becoming universal
across all micro device
companies
❏ Innovation can be costly to
compete against
❏ Lower competitor prices
❏ AMD products appeal to gamers
and consumer worried about
price
❏ Intel products are often replaces
by consumers every few years,
not every few months.
("Working at Intel Corporation"), ("Analysis Of Intel"), ("Educating People For Tomorrow"),
("An Analysis of Intel­ TechInverstor"), ("The Internet of Things (IoT) Starts with Intel
Inside®")

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Markets of Intel
Intel’s products appeal to a wide variety of people around the world. This diversity plays
a large role in the continuously growing industry of semiconductors. According to the
Semiconductor Industry Association’s data, in 2014 the semiconductor industry reached global
revenue of 335.8 billion dollars. Just to put into perspective how fast this industry is growing, the
global revenue in 2006 was 247.7 billion dollars (Global Chip Sales Hit Record $247.7 Billion in
2006). The revenue for 2014 was record breaking and marked a 9.9 percent increase from 2013,
which had a global revenue of 305.6 billion dollars (Rosso). In 2014 Intel had global revenue of
55.9 billion dollars, which was a 6 percent increase from their 2013 global revenue of 52.7
billion dollars (Intel Reports Record Full­Year Revenue of $55.9 Billion). It would be ideal for
Intel to have growth comparable to the industry as a whole. They do come close, but with all of
Intel’s success as a company, it does seem relatively low to account for only 16.6% of the total
revenue in semiconductors.
Intel can fall into many different market segments in both consumer and business
markets. Therefore, it would be difficult to pinpoint Intel to one target market. They have
products owned by people with opposite psychographic variables, different incomes, ages, on
opposite sides of the world. They offer a variety of products that can be split up into different
segments. For example, they segment for consumer income by offering processors at different
price points. Within their "i series" of processors, the Intel Core i3 is the least expensive,
followed by the Core i5 and the Core i7. This gives consumers different options if they can’t
afford Intel’s most expensive products. Intel has recently released a new processor to target those
who are more tech­savvy, the i7­6700K. This new revision of the i7 processor is one of the

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fastest processors they have ever released (Patrizio). On the contrary, for those that are less
technical and more concerned with basic functions, Intel’s Pentium Processor or the i3 may be
more realistic options. A good amount of Intel’s marketing strategy is actually based on the
opinions of the people using their products. They do this for many different target groups, one of
them being gamers. Intel has said "We do very little advertising with gamers, but instead let
gamers themselves review our products. Instead of directly advertising to them, we let the
engineering, and the opinion leaders, speak for themselves." ("The giant’s shoulder – Intel brand
profile"). It is easy to create brand loyalty when your processors have been praised as the best
over the last six years. ("The giant’s shoulder – Intel brand profile") They use the quality of their
products to target those who have brand loyalty with the expectation that they will spread the
word. While their products appeal to many consumer markets, they also greatly appeal to
business markets. One example is their Point­of­Sales solutions, which handle business
transactions like a cash register. ("Point­of­Sale Solutions Market Segment Overview") This
technology will read credit cards, sometimes have touch screens, and could even be a
self­checkout. Another product Intel targets businesses with is digital signage. Digital signage is
simply a screen that displays information such as; events, sales, a shopping mall map, or a
restaurant’s menu ("Digital Signage"). Both these products fall into the producer market as they
are used in everyday operations.
While Intel is successful targeting certain segments there are other areas they could be
targeting. One segment they could potentially target is age. It is evident when referring back to
the data that only 68.3 percent of people aged 65 and older own a computer versus 84.5 percent
for ages 45 through 64 (File and Ryan). These statistics reveal they are missing out on revenue

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by failing to target people of this age group. Relying on word of mouth seems to be an
unsuccessful marketing strategy for people aged 65 and over. The products Intel could
potentially improve on the most are their mobile processors, specifically those in cell phones.
Lifestyles is a segment Intel can invest more effort into by improving their mobile processors.
For example, most people who travel often for business frequently use their cellphones. ARM
controls nearly 90 percent of the market for cellphone processors (Ganapati). With how common
smart phones have become, this is something Intel should focus on. Nearly 60 percent of all of
Intel’s revenue comes from only 4 countries. ("Intel Corporation Sales by Geography") With
almost 200 countries in the world that leaves room for improvement. Obviously, some countries
may not be able to afford Intel’s products, but plenty are able to. Intel can use regional
segmentation to target new areas that aren’t purchasing high quantities of their products.
Intel is the largest manufacturer of microprocessors in the world. They are known as an
innovative company with high quality products that their customers stand behind. Recently, Intel
has looked to change their positioning to create an emotional connection with their customers.
They are doing this by referring to their engineers as "heroes" and moving their focus to the
people of their company. ("Creating a Bigger, Bolder Intel Brand") Intel believes their products
are superior to that of their competitors. By putting "Intel Inside" on all their products they want
their customers to recognize and remember the quality of their products. ("The Giant's Shoulder ­
Intel Brand Profile") AMD is one of Intel’s biggest competitors in microprocessors and had a
revenue of 5.51 billion dollars in 2014 ("AMD Reports 2014 Fourth Quarter and Annual
Results"). That is nearly a tenth of Intel’s annual revenue for 2014. It is fair to say Intel’s
positioning strategy has been effective against its competitors.

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Competitors and Competitive Rivalry
Intel, being the most advanced chip manufacturer in the world, has constant competition.
Everyone in the chip industry is aiming to compete with Intel and strike upon any weak points in
the hopes to surpass the progressive technology Intel provides. A few of the competitors that are
keeping up with Intel include, Advanced Micro Devices (AMD), the AllSeen Alliance, and
Advanced RISC Machines (ARM). Advanced Micro Devices (AMD) has been around for 46
years and has consistently been Intel’s long time rival in the technological industry. AMD, with
their business focus being mainly desktops and notebooks, has been able to compete with Intel
all these years because their chips have often been the most inexpensive and efficient. ("AMD is
Falling Further Behind") They have also ventured out and have been able to sell their chips to
Microsoft and Sony for their video game consoles, therefore keeping up with Intel in the
technological race. ("AMD is Falling Further Behind") Another competitor Intel now faces is
against Intel’s alliance with Samsung called, the Open Interconnect Consortium (OIC). Two
companies, Linux and Qualcomm, formed an alliance called the AllSeen Alliance, which now
consists of over 50 members including, LG, Sharp, Panasonic, and Microsoft, to directly rival the
OIC. ("Samsung Group, Intel Consortium to Rival Qualcomm Alliance") The AllSeen Alliance
began in 2013 to attempt to compete with the OIC in developing an "open­source software for
devices connected to the Internet of Things (IOT), which are everyday objects and electronic
devices that are connected to the Internet and to each other" ("Samsung Group, Intel Consortium
to Rival Qualcomm Alliance"). The final large competitor of Intel is, Advanced RISC Machines
(ARM), a company that began in 1990 and is now making great strides in technological
advancements. Smooth­Stone, a server chipmaker, funded ARM and their innovative chips that

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veer from the traditional design used by Intel. ("Intel’s Biggest Rival: ARM Chips in Servers and
Smartphones") ARM has been able to "dominate the smartphone and tablet markets," which has
been a weaker point for Intel. ("Chip Manufacturing Race Between Intel, ARM Tightening")
Due to the risky nature of the technological industry, companies such as Intel and its
competitors are forced to always stay one step ahead of the curve to keep their company thriving.
Unfortunately for AMD, they prove to be faltering and have already made the decision to cut
their costs in half within the past five years which many analysts fear will hinder the quality of
their products. ("AMD is Falling Further Behind") AMD has recently split into two companies,
the other being GlobalFoundries, in an attempt to keep up with Intel by branching out.
GlobalFoundries has been able to partner with ARM to make chips for smartphones, tablets,
PC’s, and are hoping "to implement a manufacturing process that could be on par with Intel’s
longstanding manufacturing advantage" ("Chip Manufacturing Race Between Intel, ARM
Tightening"). As for the AllSeen Alliance, they are diving into a huge opportunity since,
"analysts expect the IOT to comprise 212 billion devices within six years, and lay claim to 2
percent of Web traffic by 2018" ("Samsung Group, Intel Consortium to Rival Qualcomm
Alliance"). However, there are not many trends to be viewed since this alliance is still in its
development stages. Finally, for ARM, they appear to be doing very well and are moving up
quickly, posing a possible threat to Intel especially with their increase in stock and
accompanying rising popularity. They are now "catching up with Intel on 3D transistors,
announcing a new partnership with Taiwan Semiconductor Manufacturing to manufacture 64­bit
chips that are faster and more power­efficient than current chips." (ARM Chases Intel on 3D
Transistors with TSMC Deal) This could allow ARM to surpass Intel in the future since the

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efficiency of ARM’s new chip design is predicted to be more power­efficient chips, which
customers will prefer if it is priced within reason.
The technological industry is one that can turn at any moment making companies highly
successful or fall quickly behind the rest. Therefore, Intel must always be pushing itself to stay
ahead with innovative ideas in order to keep themselves in the front of the crowd that is fighting
for Intel’s successful position at the top. Currently Intel is in fact "the most advanced chip
manufacturer in the world," making Intel a very intimidating competitor. ("Chip Manufacturing
Race Between Intel, ARM Tightening") Intel and AMD have been rivals for quite sometime, but
Intel has always had an extra push that AMD couldn’t emulate. AMD has only kept their second
place spot by providing effective, but less expensive chips. However, with their recent split into
GlobalFundries, they are demonstrating some serious competition that could shake Intel if they
don’t continue their push to stay above and beyond the rest of the competition. In addition, the
AllSeen Alliance is also posing a threat on Intel’s alliance, the Open Interconnect Consortium,
and their work on the IOT. Due to the novelty of this idea, any one company has the opportunity
to surpass the other, however with Intel having already implementing strong practices and
proving to be successful in their endeavors each year, they should have no problems competing
with this new alliance.​ ​Finally for ARM, this does pose a large threat being they are venturing
out and redesigning the original chip model, which could in turn improve the quality of the
product past Intel’s. With this in mind, Intel is still "about one to two years ahead of its
manufacturing rivals," which allows them time to directly compete with this new design and
possibly even create a new design of their own that could match or surpass the effectiveness of
the chip ARM has been working on. ("ARM Chases Intel on 3D Transistors with TSMC Deal")

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In the technological industry it’s safe to say that there are great risks, but the rewards
make the risks worthwhile. More specifically to Intel, the Semiconductor industry is "perennially
one of America’s top exports, and every year, chip makers and designers dramatically increase
the performance of their products while decreasing prices, making high­end technology goods
increasingly productive and affordable for consumers" ("Semiconductor Industry Association").
This industry is one that is highly attractive and rewards those that work hard to push those that
work to stay above the rest by promoting creative ideas just as Intel has. However, this is
becoming seemingly more difficult as "customers are more demanding, they are seeking greater
performance, better features, and more platform independence and flexibility at the lowest price
point possible" ("2015 Technology Industry Trends") This is where GlobalFundries poses a
threat to Intel being that they have been able to provide inexpensive chips to customers and are
now beginning to pose threats with their quality. In addition to this, the nature of this industry is
to be ever changing which causes older models to quickly become obsolete. Therefore, newer
companies are beginning to pose more of a threat than ever before. Thus, "legacy companies will
need to act more like their nimbler rivals," meaning Intel needs to ensure it can still maintain its
flexibility to keep up with the always changing demands. ("2015 Technology Industry Trends")
Customers
Based on the overall feedback provided by planetfeedback.com, Intel has a great
reputation as far as product line goes, but has struggled in the past with responding to customer
complaints. Many of the reviews on this site compliment Intel on specific processors, especially
the i7 processor, which has made very customers pleased with Intel and the speed at which their
computers operate now. The few customers who do complain about products specifically do state

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their shock as they are usually very pleased with Intel products that they have owned in the past.
One customer wrote "I’ve NOT been dissatisfied with your company in the past, so this does
surprise me." While the review was harsh, it did recognize the fact that generally Intel produces
quality products. The main complaint on this particular site is that Intel’s customer service did
not resolve their issues very well with consumers. Consumers believe that Intel is trying to "take
the money and run" in some cases where they do not respond to customer concerns. Many people
threaten that they will never buy products from Intel again, though this is a difficult task because
many products come equipped with Intel or only offer the different i­series Intel processors as an
option for customizable computers. There were very little reviews are far as price, but many did
compliment Intel on the quality of their products which correlates with the price at which they
offer products.
The feedback from computershopper.com was in very high regards to Intel. Intel’s
i­series products swept the "Top 10 Processors" chart with eight out of the ten products being
Intel. ("Computer Shopper: The Complete Buying Authority") The other two, listed at number
eight and number ten on the list are AMD, Intel’s main competitor. AMD and Intel have
different consumer focuses, which is what puts Intel ahead of AMD in most consumers minds.
AMD focuses to provide for consumers "very good integrated graphics performance at an
affordable price" (CS). Intel has a more broad consumer focus, with students in all majors,
corporations, schools, gamers, etc. while still offering an affordable price. Almost all of Intel’s
top products listed are their i7 processors which are the fastest processor devices Intel has
released to date. ("Processor Reviews, Ratings, and Pricing") There are many different uses for
the specific reviewed Intel products such as gaming, school, or office use. Many schools,

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including Arizona State University ("Hayden Library") use Intel products in their computers as
well due to the overwhelming number of students using the computers everyday. The reviews on
Computer Shopper include speculation of their product, price of the product, and how adaptable
it is with other programs on your computer. The products all receive positive reviews, with the
only somewhat negative point being price. The price is talked about a lot because the top ten list
included a lot of the i7 processors which are Intel’s most advanced and fastest processors. With
Intel, consumers pay for the quality in which they receive and if they expect top of the line
equipment, they will be paying slightly more. The systems are prided by many consumers on
how long the processors last and their reliability. Intel is also complimented on every review on
how they are detailed in explaining their products and exactly what to expect from a certain
product with a compatible device. The most surprising fact on this site was that the Intel
i5­6600K, a moderately powerful computer at a moderate price, came in at number one instead
of an i7 processor. For the price and the speed of this particular processor, it could not be
outdone. It appealed to a large consumer base and received the highest reviews over not only
AMD, but other Intel products as well ("CS").
When consumers are purchasing products that Intel is equipped with, the buyers tend to
explore their many options. One of the main questions a buyer asks is how fast will the
processor, Intel or AMD, run my computer and the programs? This is important to consumers
because they want their computer and the programs to run quickly and smoothly with little, to no
lag. You are able to analyze this buying decision this through the reviews because a majority of
the reviews mention how the different processors work at different speeds and how the different
companies are focused on ensuring that specific programs run better. The reviews also mention if

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you will need to purchase another motherboard if you plan on replacing the processor, or if
certain programs will not work properly or as efficiently with a particular processor. Consumers
have many decisions to make because of how many different processors are available for
purchase, this is good and bad for Intel. Intel must diversify themselves from AMD to ensure
they sweep the target market but they also need to make themselves easy enough to navigate for
consumers. They have done so by partnering up with companies such as Apple, Lenovo, Dell,
Asus, HP, and Acer. ("Devices with Intel Technology") Since Intel has partnered with so many
companies, Intel has created a recognized logo on most new computers at retail stores. Many
computers at stores such as BestBuy, come already equipped with Intel, leading consumers to
narrow down to, which brand of computer they would like, the speed of it, etc. Many consumers,
do not know there were other processor options out there because of how well Intel markets their
products.
Below is a chart with some of Intel’s products and the different qualities they possess in
relation to their price. This will help us understand the differences between processors and prices
in regards to speed, graphics, and other Intel equipped features.

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(Intel Core Review)
As you can see above, Intel truly offers their higher end products for slightly higher
prices because you are paying for the speed, the graphics, and the advancement of it. While the
i5 has a lot to offer and is most consumers choice based on price, the i7 is great for a consumer
who uses their computer frequently, takes up a lot of storage, or uses programs that require a fast
processor. This chart can be useful for people who are already familiar with microprocessor
characteristics, because many people guess on what processor they need. There is a risk
associated with processors because on one hand all of the information can be backed­up but
fixing your computer's processors is time consuming and frustrating. Many consumers will not
attempt this change by themselves, they will send it into a company. This take time and money