Pestle Analysis of Intel

 PESTLE Analysis

Intel Corporation always makes sure that the company has the ability to go further and with long term growth, by addressing issues that most commonly affecting the company, such as those that are mentioned in a PESTLE Analysis. A PESTLE Analysis is very crucial for every companies out there, it is a way for them, especially the investors and the decision maker, to identify and analyze the external factors that will affect the company and its macro-environment.

With digital revolution and rise of technology, together with rapid rate of innovation in global market involving semiconductor for mobile platform, Intel must fully utilize its resources and capacity, to continuously develop and implement top notch strategies to address and overcome all the factors necessary. Continuous evolution of strategy is crucial, as staying at the same pace while others are moving forward, will not bring the company towards to the vision that company uphold.

Intel’s PESTLE Analysis helps them to point out the external factors that are affecting them, which will determine the nature of semiconductor market. It will give them a clear path and mindset on how to identify and therefore exploit the new opportunities, which surely bring the company to the next level in the future. The opportunities are closely linked to the dynamic nature of global market for semiconductors particularly in computing processors.

Political Factors

The changes in political landscape can bring a very much impact to Intel’s business. Government activities and policy making will determine the effect on Intel, in term of advantages as well as disadvantages.  

Intergovernmental action against monopoly has been improvised to give equal opportunities and starting point across various industry. With this ball rolling, firms such as those in computers and laptops selling industry will be greatly increased, consequently facilitates the growth of Intel in semiconductor industry. That said, this will also increase the competition in the semiconductor market dramatically. Intergovernmental action in supporting intellectual property legal protection is very much beneficial to the growth of Intel’s business. Company can expect enhanced protection for patented product and process design as well as development of Intel’s microprocessor product. The support that government provide for globalization blurs the boundaries of territories, gives Intel the upper hand to expand its business to place where opportunity lies. Looking the other way round, this will also cause the access to global market by competitor firms, increasing the potential competition between them and Intel.

Economic Factors

The economical trends often decide a certain company’s market share and their revenue. Intel is no exception. Its revenue has been influenced greatly by the economical changes throughout the history.

A certain market often can be divided into developed markets and developing markets. Economical stability in developed markets has bring Intel a huge improvement in their business. Intel tends to have the opportunities to form new alliances in a particular market to hold the palm of competitive advantage, ultimately increase its market share throughout their business. Developing market growth has also been increasing drastically, causing the purchase rate on computing devices to heighten, which further improves the revenue and profitability of Intel in its semiconductor market. Last but not least, with high disposable income, consumer’s purchasing power is increased and they are capable to invest in high end computing devices which house Intel’s high end and profitable products.

Social / Sociocultural Factors

Intel’s business environment is very much related and influenced by social factors that rise among the society. The effect on its profitability is rather identifiable.

In the society, the interaction thru internet among great population includes the youngsters and even the elders have a very good impact on Intel’s business. It creates opportunities for the company to develop products for online communication and gaming. They rely on computing devices which house Intel promising chipsets. Social condition in particular place has a noticeable effect as well. Intel took advantage and invested tremendously in countries such as China and Vietnam, because due to their high unemployment rate, Intel is able to gain reliable and cheap work force, which in turn lower the labor cost.