Discuss about the Industry Trends in Cloud Computing.
With the increasing ramified economic changes and complex business factors, each and every organization needs to use Preliminary Strategic Analysis to run the business effectively. There are several internal and external factors which impact the business functioning and strategic planning of the organization. In this report, Intel Ireland has been taken into consideration.
It is the international technologies company which is indulged in microprocessor business. It designs and builds the essential technologies that serve as the foundation for the world’s computing devices. With the changes in technologies, Intel has built various advanced technologies and machines for the betterment of the society at large.
There are several preliminary Strategic Analyses which are used to assess all the present and future business factors and rival’s strategic plans of the organization
Intel Ireland is primarily indulged in semiconductor chip maker business and falls in the six distinct operations segments with one competitor in each segment.
In the personal computer segment, the most significant rivals are computer processer manufacturer Advanced Micro Devices, American multinational companies such as IBM, Nvidia, and Microsoft. [2]
In the DEG microprocessor segment, Intel Ireland is highly dominated by the current offering of its major competitors such as Microchip Technology (MCHP). It is the American manufactures that offer highly advanced technologies products and services at least price.
The Data center group segment, the primary competitor of Intel Ireland is EMC Corporation which follows product differentiation strategy in the market [3]
In Flash memory segment, Intel Ireland, the Boise, Idaho based semiconductor manufacturers are the strongest competitors who are giving tough competition.
The strongest position of the Intel Ireland is in the microprocessor chip production. It has been providing highly advance chip processor which is used by the highly advance organizations in their computer systems.
The weakest position of the Intel Ireland is in Flash memory segment which shows that company needs to improve its existing business functioning by creating the core competency in the development of the safest Flash memories for clients [4]
There are several strategies which have been used by the rivals such as Nvidia, Microsoft, Edware, Verisign, Red Had Inc and Unisyc Corp and EMC to attract clients. Microsoft has used product differentiation strategy to win over the market. It has improved its research and development department to consistently make the development of its advance technologies with the changes in the tech- generation needs in the economy. Versigin used the strategic planning to enter into strategic alliance with the retail stores to increase its overall turnover. In addition to this, Unisyc Corp followed the online promotional plan by using the cyber computing enterprises resources planning methods. Nonetheless. Microsoft used price skimming strategy planning to win over the market and moved towards the advance technologies and parts used in its current offering [5]
There are several factors such as market growth, advancement in the technologies, experts employee hiring, and research and development department of Intel Ireland. The main competitive advantage of the Intel is based on the use of advance technologies and machines in its current offering. Intel focuses on the anti-virus software program which assists the company to attract more clients in Ireland and international level and increases the overall market share[6]
The main factor which has been developed by Intel Ireland is based on its pricing methods. Intel Ireland offers all of its advance products and services at very least cost which may be hard for other rivals to follow in the market. However, in order to keep the price of its software’s and other programs on an international level, company keeps the cost of its software’s low and follows double taxation avoidance treaty and lower traits program with countries [7]
The economic network of the Intel Company is spread across the cities like Taiwan, China inclusive of Hong Kong and the United States. When compared to its competitors the revenue of the Intel took a jump in the year 2017 by 4.15% year after year. The company’s priorities were the growth areas and data center was in the first stage. The biggest revenue was accorded by the PC division. It is considered as the bedrock for the company. Thought the size is reducing to flat but Intel has recorded more than the profitability could be in terms of its competitors. Moreover, Intel is versatile in other sectors like which are different from the existing PC structure.
With the changes in economic and clients choices, Nvidia, Microsoft, Edware, Versigin, Red Had Inc and Unisyc Corp and EMC are coming up with the advance technologies development in their current offering. Product life cycle introduction program is ideally used by these companies in Ireland to increase the sales of their overall products. The main competition is faced by Intel Ireland is based on the product differentiation and cost leadership program. Each and every company has been focusing on selling advance tech products and software’s at very least price to attract more clients. It may result to decrease in the overall market share of company [8]
The portal five forces model helps to identify all the external factors which may impact the business functioning of Intel Ireland Corporation.
|
Portal’s five forces |
Description |
Strength |
|
Buyer’s power |
There are several competitors who have focused to offer advanced technologies and software’s to clients at least price. Intel needs to keeps the price of its offering low if it wants to grab more market share[9] |
The buyer’s power is high in the market. |
|
Supplier’s power |
Intel Corporation has set strategic alliance with the suppliers. In addition to this, it could also use forward integration and backward integration due to its advance research and development department [10] |
The supplier’s power is low in the domestic market of Ireland. |
|
Rival’s offering |
There are several rivals such as Nvidia, Microsoft, Edware, Versigin, Red Had Inc and Unisyc Corp and EMC who are offering advance technologies, machines and software are to attract more clients in the market. |
The rival’s offering in the domestic and international market is quite high may be a negative indicator for the Intel. |
|
The threat of new Substitutes |
There are several substitutes’ products such as the computer is being replaced by the laptops and mini systems. Play station is being replaced by X-Box and other I-Pad devices [11] |
The threat of new substitutes is quite high. |
|
The threat of new rivals |
The new entrants in the IT market may face difficulty due to the high fixed investment in research and development department. However, an entrepreneur with the innovative technologies could dominate the existing market [12] |
The threats of new rivals are average. |
There are several changes in the business environment which are given as below.
|
Changes in the business environment |
Identify the causes |
|
Advancement of the technologies and system devices [13] |
Need of people and their inclination towards the high technologies devices and system. |
|
High data security program features |
With the high-security issues and malware attacks of the ill-intentioned people, the personal information of the client is being used by them for their personal benefits. It causes losses to clients in monetary and personal terms[14] |
|
Increased completion in the IT sectors |
IT sector offers high profitability which attracts new entrants and well-established business organization to diversify their business in IT business [15] |
Intel has started Data Centre Group (DCG), which is considered the most important business of Intel over a long term. It is large and very profitable having a long-term growth prospect for the company [16]Although Intel is primarily the specialist of processor manufacturing, it is working on DCG with the same interest because this is showing a remarkable share of the company’s revenue. This is completely different from the existing type of business Intel working on but being a new product available with the high technology used by the company, this has created huge attraction of the customers for new products of DCG
With a successful opening of the year, Intel has shown a total growth of 4.1% in the quarterly revenue rose to 17.05 billion from 16.37 billion. This makes a rise of 75 cents per share new the last year. The company has decided to achieve a total growth of 20% by the end of this year. In the mid of 2015 company had acquired Altera a new programmable logic specialist for $16.7 billion, the company has planned to strengthen the Altera’s core programmable business by building future chips for Altera using the Intel’s new technology of chip manufacturing. This could be the major factor in the company’s market share growth. In the same direction, company has also decided to integrate the Altera’s existing FPGA technology by replacing its processor with the new one manufactured by the Intel itself. This strategy aims at both the Internet of Things and Server market to achieve its goal by the end of this year[17]
There are certain segments which Intel is approaching to explore its growth and opportunity rate like two in one gaming concept. The company is having a bullish thought of data and cloud computing concept. There are a virtual expansion and growth in analytics which the company is focusing on.
Coming to the research department of the Intel Research, it adopted an open collaborative research model. In this model, the researchers function directly with expert professors and can share their ideas and knowledge freely. The contract was a combined reject of which is owned jointly by the Intellectual Property and host university. Labs are provided to the personnel management and research and development department to avoid any further conflict and misunderstandings. Further, Intel refocused its efforts on commitments regarding 5g concept which a profitable segment for the company’s overall growth. The department is focusing on the penetration method and believes in carving an opportunity and connect with the end to end customers. The research department also focuses on the areas which do not core to the Intel’s business. The ubiquitous networking and sensor computing created a platform for the Intel users to elevate the demand [18]
The personnel department of the Intel is widely scattered at different levels and stages. Each stage is following a hierarchy from the corporate level to the functional level of management. The employees are focusing the mobility which is a critical concept for the Intel’s growth. The employees are functioning in various projects and enhancing skills through training and seminars to deliver the best possible services [19]
The company has increased its overall revenue by average 22% since last five year which reflects the positive indicators for the business development of the company on the international level. Another source of high revenue of the company is its Data Centre Group (DCG), which is considered the most important business over the long term, for the overall revenue growth of the company. Therefore company decided to build out a portfolio of new products aimed at the customers of Data Centre Group.
Conclusion
The manpower is reallocating and resources are pushed into potential areas by the employees. This enables the employees to create a sense of competition among them and new ideas are discussed among the co-employees to choose the best strategy that will fit with company’s resources and requirements. Now in the end, it could be inferred that company has improved its business with the drastic rate. However, in order to give tough completion to other rivals, it needs to consistently increase he overall technological advancement in its research and development department.
References
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Bohne, A., Decision-Making and the Internet of Things: Influences and Impacts on Business Decisions and Supply Chains., 2017
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Dempsey, D. and Kelliher, F, Industry Trends in Cloud Computing: Alternative Business-to-business Revenue Models. Springer., 2017
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Diao, Y. and Bhattacharya, K.K., International Business Machines Corp,. Estimating value of information technology service management based on process complexity analysis. U.S. Patent 9,600,784., 2017
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O’Driscoll, M, Ireland, West Germany and the New Europe, 1949-1973: Best Friend and Ally?. Oxford University Press, 2018
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