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PEST ANALYSIS ( INTEL CORP ) ROOM 5 : ATHIRAH SYUHAIDAH BINTI ABDULLAH ( 21000968) EWILMA NURNASLIA BINTI OTHMAN (21001733) NUR FARAHEEN ERWIEFA MOHD FARID AFIE (21001197) NUR IRDEENA RUSLAN ( 21001070) SARMEENTHRAN MAHENTHRAN (21001384).

PEST ANALYSIS FACTORS. POLITICAL 1. ECONOMIC 2. SOCIAL 3.

POLITICAL. The remote or macro-environment of Intel Corporation is subject to changes or trends in the political landscape. This aspect of the PESTEL/PESTLE Analysis accounts for the effects of government activity on firms. In this case, the following political external factors are significant in Intel’s business: 1 Continuing government support for globalization (opportunity & threat) 2 Improving intergovernmental action against monopoly (opportunity & threat) 3 Improving intergovernmental support for intellectual property protection (opportunity).

Government support for globalization presents an opportunity for Intel to expand its business based on improving market conditions. However, this external factor also creates the threat of increasing potential competition, as more foreign firms gain access to the global market for semiconductors, especially microprocessors. On the other hand, the improving intergovernmental action against monopoly facilitates Intel’s growth based on the increasing number of firms that sell products like laptops and desktops. However, the same external factor imposes the threat of potential increase in competition in the semiconductor market. Nonetheless, Intel can benefit from the opportunities linked to improved protection for its intellectual properties, as governments cooperate to develop appropriate legal protections. For example, the company can expect enhanced protection for its patents as it develops and fabricates new microprocessors. In this aspect of the PESTEL/PESTLE analysis of Intel, strategic decision-making must consider the notable threats in the remote or macro-environment..

ECONOMIC. Intel's sales are affected by economic developments that influence markets all over the world. This component of the PESTEL/PESTLE Analysis addresses the impact of economic developments on the firm's distant or macro-environment. Economic external factor affect Intel’s semiconductor business: 1. Economic stability of developed markets (opportunity) 2. Rapid growth of developing markets (opportunity) 3. Rising disposable income (opportunity).

Example for no. 1 For example, the company has the opportunity to aggressively enter new alliances in these markets to strengthen its competitiveness and increase its market share. Examples for no.2 For instance, consumers in developing markets like those in Asia are increasing their purchase rates of computing devices, many of which contain Intel processors. Examples for no. 3 With high disposable incomes, consumers are more capable of purchasing new computers that contain Intel microprocessors. It is notable that these effects of such economic external factors are indirect, considering that the company’s direct customers are equipment manufacturers, such as laptop manufacturers, and not the end-users of computers. This aspect of the PESTEL/PESTLE analysis of Intel shows growth opportunities in the remote or macro-environment of the semiconductor industry..

SOCIAL. Influencing Intel’s Business Environment Social c hanges influence Intel’s business and its remote or macro-environment. The effects of sociocultural trends or changes are considered in this aspect of the PESTEL/PESTLE Analysis. In the case of Intel, the following sociocultural external factors are significant in the semiconductor industry environment: 1.Improving wealth distribution (opportunity) 2.Rising attitudes favoring ecological products (opportunity & threat) 3.Increasing interactions via the Internet (opportunity & threat)..

Improving wealth distribution is a social trend that increases the buying capacity of more people. As a result, they are more capable of purchasing computing devices with Intel processors. On the other hand, the rising attitudes favoring ecological products create opportunity for the company to improve its products. For example, Intel can develop and fabricate new microprocessors that have higher energy efficiency. Leaving this sociocultural external factor unaddressed could threaten the company, as other firms could develop competitive advantage based on the energy efficiency of their products. The increasing level of interactions via the Internet is another consideration for Intel’s strategic decision-making. This external factor creates opportunities for the company to develop better products for online communications and network gaming. These efforts should reflect Intel’s generic strategy and intensive growth strategies. For instance, the company must highlight differentiation in developing products to ensure competitive advantage. Based on this aspect of the PESTEL/PESTLE analysis of Intel Corporation, there are significant threats and market opportunities in the remote or macro-environment of the semiconductor industry..

TECHNOLOGICAL. Delivering on Commitments Intel corp silicon and software are essent ial for movi ng, storing, and processing data faster and more securely than ever before. Advancing these technologies allows us to help their customers solve their greatest challenges. Driving Innovation Intel corp believe that data is dramatically shaping the future of all humankind. Intel is working relentlessly to unleash the potential of data, leading to more capable and efficient networks, and pervasive AI across smart devices. Moore’s Law set the pace for the digital revolution and continues to inspire us today. Global Impact Intel corp are applying our reach, scale, and resources to deliver on bold goals. And they're not doing it alone: they work with their customers and galvanize the industry for even greater impact. Their customers rely on Intel technologies to make roads safer, combat climate change, and make healthcare more accessible..

REFERENCE. 1.Lucas, A. (2017, March 11). Intel Corporation PESTEL/PESTLE Analysis & Recommendations - Panmore Institute. Panmore Institute; 2.https://www.intel.com/content/www/us/en/company-overview/company-overview.html.

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