A. Industry ProfileB. Representative Competitive Strategies within the IndustryPrimary Strategy: DifferentiationFigure 3C. Porter Model Evaluation of Industry ForcesThreat of Substitute Products and ServicesD. Globalization of the IndustryE. Importance of Information Technology to the IndustryFigure 6D. Market and Financial PerformanceIntel currently has 78,700 employees, and has revenue per employee of $340,076. For the year of 2003, financial results were indicators of the company’s progress. Here are a few resulting achievements:E. Significance of Information SystemsF. Strengths and Weaknesses of IntelJust like every company, Intel has its weaknesses too. For example, there was an instance where Intel was actually beat by AMD by having a more powerful processor. Through this time frame only lasted a mere month compared to the few decades Intel has reigned as industry leader, this shows that it is not impossible to catch up to the success of Intel and or surpass it.Examining One Component at a Time An Analysis of Intel Corporation and the Benefits Derivedfrom Using Information SystemsVictoria LinISM 158Due: March 4, 2004Table of Contents Objective …………………………………………………………………………………3Section I: INDUSTRY SUMMARY: AN ANALYSIS OF THE PC COMPONENTS INDUSTRY ……………………….…..4A. Industry Profile ………………………………………………………….…….4B. Representative Competitive Strategies within the Industry …………….……..6C. Porter Model Evaluation of Industry Forces ………………………………....11D. Globalization of the Industry ………………………………………………...14E. Importance of Information Technology to the Industry …………………...…15Section II: COMPANY PERSPECTIVE: AN ANALYSIS OF INTEL ………………..17A. Intel Company Profile ………………………………………………………..17B. Business Leaders ……………………………………………………………..20C. Competitive Strategy Statement ……………………………………………...22D. Market and Financial Performance …………………………………………..23E. Significance of Information Systems ………………………………………...24F. Strengths and Weaknesses of Intel …………………………………………...25Section III: STRUCTURED ANALYSIS OF INFORMATION SYSTEMS AT INTEL …..27A. Strategic Option Generator …………………………………………………..27B. Roles, Roles and Relationships ………………………………………………29C. Redefine and/or Define ………………………………………………………30D. Significance of Telecommunications ………………………………………...32E. Success Factor Profile ……………………………………………………..…33Section IV: FINAL ANALYSIS: THE SUCCESS OF INTEL …………………………35A. Success of Business Strategy and Information Technology Use to Date …...35B. Is the Company Effectively Postured for the Future? ……………………….35“Best of Breed” Sources ………………………………………………………………...37References ………………………………………………………………………………38Lin 2ObjectiveAccording to George Gilder, the Intel Corporation is the “most important company in the history of the microcosm.” Importance may be relative depending on whom this may concern, but one definite aspect is that Intel has become one of the most successful companies in history. Now that the use of technology has become widespread, the significance of something as small and powerful as the microprocessor has become something that most people can not do without. The following analysis will focus on the personal computer (PC) segment of the semiconductor industry. It will specifically delve into greater detail on Intel from the company’s beginning, to how information systems has helped the company become what it is today, and where its growth and success will lead them in the future. It will also examine how Intel has used information systems as a means to become sustainable and to gain a competitive advantage. This analysis will be accomplished in four sections. Section I discusses the industry related to Intel, business strategies within the industry, as well as the importance of information technology (IT) to the industry. Section II focuses on the company itself. This part will address key company executives, competitive strategies, the significance ofinformation systems to Intel, and strengths and weaknesses of the company. Section III examines in more depth the role of information systems, the significance of telecommunications, and Intel’s success factors. The fourth and final section looks at the success to date and the future performance prospects of Intel.Lin 3SECTION I - THE PC COMPONENT INDUSTRY A. Industry ProfileThe personal computer components industry is actually a segment of a much larger industry, namely the semiconductor industry. Since referring to the industry as the semiconductor industry is too broad, and naming the industry by a specific product (like the microprocessor industry) is too narrow, for the purpose of this analysis, this industry will be referred to as the PC components industry. This is a booming industry in today’s economy for many reasons. Today, companies and users alike are becoming more connected to technology because of the rise of the Internet. Companies use technology toenhance their competitiveness within their industry as well as to derive benefits such as efficiency, effectiveness, lower costs, and competitive advantages. In the past few years the PC component business has not been doing very well and has suffered a measurable loss in sales, revenue, and productivity. Lately, it seems that the industry is making a come back. Though almost every company suffered, Intel was still able to hold the lead. According to the Semiconductor Industry Association, sales of products within the industry were about $70 billion during the year of 2002. Worldwide, it amounted to $141 billion. Of all product sales, the microprocessor was the biggest seller followed by DRAM sales. As mentioned, since the industry has taken a hit the past few years, it may take a
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