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Intel Corporation is the biggest semiconductor manufacturer in the world and has changed the global marketplace radically since it was founded in 1968. The first handheld calculators and PC’s were developed through the innovation of Intel’s microprocessors. The company is currently valued at more than $54 billion and employs more than 100,000 people. Intel’s product line of Pentium processors have become a household name. Today, at least 80% Intel processors are used in PC’s globally.
Suppliers:. The essential material used to create semiconductors is silicon which is an element of sand and is plentiful in nature. Suppliers cannot alter the prices of this primary commodity to significantly influence Intel Corp’s business because Intel can afford to have several suppliers. Additional suppliers provide the metallization needed between the silicon layer and the plastic for the packaging of the fully manufactured processors. These too are plentiful and Intel can afford to have several suppliers at considerable prices.
Competition rivalry:. Intel Corp continues to enjoy large market shares with minimal competition. In 2011, the company controlled 79.3% of the PC processors market and 84.4% of the of the mobile PC microprocessors. These figures included a 2% drop from the first quarter of the year. The decline in market share could be attributed to increased competition from companies such as AMD, Samsung, Texas Instruments, and Toshiba. These companies sell their products at reduced prices and run aggressive marketing. Competition is therefore one of Intel’s biggest challenges in their pursuit to retain and increase their market share. Being highly regarded for production of high quality products stands the company in good stead and should the company fend off damaged reputation due to counterfeits, it will sustain its status as the market leader.

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