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For example services like Dropbox and Google Drive are substitute to storage hardware drives.The threat of a substitute product or service is high if it offers a value proposition that is uniquely different from present offerings of the industry.Intel Corporation is one of the leading firms in the Semiconductor - Broad Line.
By analyzing all the five competitive forces Intel Corporation strategists can gain a complete picture of what impacts the profitability of the organization in Semiconductor - Broad Line industry.In addition to its excellent positioning, Intel launched its “Intel Inside” marketing campaign that increased brand loyalty.Consequently, the campaign, together with Intel’s positioning, made Intel’s Pentium processors a household name. AMD initially captured market share in the low- to mid-range processors, but also gained market share across product lines. Competition pushed Intel to expand beyond semiconductors, but few became successful. The company was involved in antitrust allegations filed by AMD in the early 90’s.In order to regain the lost market share, Intel collaborated with Apple for Apple’s microprocessor needs.By 2006, Apple transitioned to ship its line of Macs and Mac Pro with Intel processors. The product line was, not only a tremendous improvement to processor performance, but is also considered a leap.If the rivalry among the existing players in an industry is intense then it will drive down prices and decrease the overall profitability of the industry.Intel Corporation operates in a very competitive Semiconductor - Broad Line industry.Suppliers in dominant position can decrease the margins Intel Corporation can earn in the market.Powerful suppliers in Technology sector use their negotiating power to extract higher prices from the firms in Semiconductor - Broad Line field.Introduction Intel Corporation is the world’s largest semiconductor chipmaker.Founded in 1968 by Gordon Moore, Robert Noyce, Arthur Rock, and Max Palevsky, the company makes integrated circuits, flash memory, embedded processors, motherboard chipsets, and other communications- and computing-related devices.