Strategic analysis is basically concerned with the structuring of the relationship between a business and its environment. The external environment which is dynamic and changing holds both opportunities and threats for the organizations. The organizations while attempting at strategic realignments, try to capture these opportunities and avoid the emerging threats. So it is very important for organizations like Intel to study and understand about the external environment. To do this, we can use the PESTEL framework.
In PESTEL framework, the external environment is classified into six broad categories: Political, Economic, Social, …show more content…
Recently the European Union formally lodged antitrust charges against Intel, accusing the CPU maker of using illegal methods to compete against its main rival AMD. This action represents the culmination of years of antitrust investigation by the EU—and is likely the beginning of a very unpleasant experience for Intel. EU charges that Intel used illegal methods to coerce OEM computer manufacturers to ship systems with Intel rather than AMD processors. Intel is a large firm and being accused of anti-competitive behavior by the EU will affect its reputation in a big way, and to prove its conduct had been legal it will have to incur hefty costs (Fiveash, 2007).
2. Porter Five Forces
The Five Competitive Forces analysis was developed by Michael E. Porter of Harvard Business School in 1979. Since that time, Porter’s five forces analysis become an important tool for organizing the company structure in the business strategic. Porter’s five forces are based on the insight of corporate strategy that should bring the opportunities and threats back to the organizations external environment. Especially, competitive strategy should rely on and understanding of company structures and the way they change. In every company or every market, Porter has been identified five competitive forces. These forces determine the intensity of