Assignment 3: Business-Level and Corporate-Level Strategies

Assignment 3: Business-Level and Corporate-Level Strategie

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Intel Crop is an American multinational company headquartered in Santa Clara, California. Traded publicly (ticker: INTC) in the NASDAQ and is a component of the Dow Jones Index and Standard & Poor’s 500 Index. It was founded by two scientists, Robert Noyce and Gordon Moore in 1968. By 1971 they had introduced the world’s first microprocessor since then Intel has been constantly innovating their industry (Intel.com (1), 2013). From the data reported in 2010, Intel has 82,500 employs around the world an 55% of does employees resides in the U.S. . Comparing them to Samsung, a direct competitor in the semiconductor market; Intel has a market share of $118.31 Billion, while Samsung has $204.15 Billion. Intel has a P/E ratio of 13.23 and a return on equity of 18.07%, while Samsung has a P/E ratio of 7.23 and a return on equity of 14.87% (Bloomberg, 2013). Intel Business-Level Strategies Business uses business levels strategies to establish and defend and defend their strategic position with their competitors (Hitt, Ireland & Hoskisson (1), 2013). There are five levels of strategies and does are: Cost of leadership, differentiation, focused cost of leadership, focused differentiation, and integrated cost leadership/differentiation. The cost of leadership strategy is used by businesses to reduce its operation cost lower than its competitors giving them advantage over them by increasing their operating income (Businessdictionary.com, 2013). This information gives an investor o shows if a company is operating efficiently (Investopedia.com, 2013). For example, Intel has an operating margin (Operating Income / Net Sales) of 26.91% while Samsung has an operating margin of 13.53% by the end of the 3 rd Quarter of 2013 (Bloomberg, 2013). This shows that Intel makes $0.26 (before interest and taxes) for every dollar they sell, while Samsung makes $0.13. Having this said Intel operates more efficient than Samsung.
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Business-Level and Corporate-Level Strategies Being in the industry of semiconductors “differentiation has shifted from manufacturing to improving productivity in new-product development” (Numetrics.com, 2009). That is way since then Intel has invested developers in new sectors. For example, in data center software, cloud technology, digital media, perceptual computing, software and hardware security solutions, and emerging devices. Making them to innovate their prod