Value Chain Analysis of Intel

Intel is a semiconductor chip manufacturing American multinational technology company. Arthus Rock, Robert Noyce, and Gordon Moore founded the technology company in 1968. Today, we’ll discuss the value chain analysis of Intel supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Supplies and Material Categories of Intel

  • Computer hardware components
  • Hosting infrastructure
  • Employee’s services
  • Tech consultation and outsourcing experts
  • Software
  • Networking and telecommunication
  • Market Research
  • Communication and connection

The Value chain analysis of Intel supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of Intel value chain analysis company example as follows;

Value Chain Analysis of Intel

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Intel supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Intel

Some of the five main primary activities in the value chain analysis of Intel supply chain analysis are as follows;

Inbound Logistics of Intel

I-Large Supplier Network

Intel has established a very large and diverse network of over 10000 suppliers and vendors in various countries across the world. The tech company has made a strong commitment to procuring top-quality materials, supplies, and components at the best possible price with an efficient delivery method.

II-Supplier Evaluation Criteria

Intel is highly cautious about responsible and ethical sourcing of raw materials and supplies; the tech company looks for the best value at the best price. The company prefers to partner up with suppliers that have the motivation and commitment towards quality and continuous improvement. However, some of the areas of the supplier’s performance analysis are as follows;

  • Diversity
  • Reliability and delivery service
  • Stable finances
  • Sustainability Commitment
  • Competitive cost
  • Process control and productivity

III-Supplier Relationship

Intel develops long-term relationships with suppliers who share the same vision of providing top-quality material and service to the company. While collaborating with the suppliers, the company provides financial support, training, legal guidance, production, and safety precautions. The tech brand carefully negotiates the planning terms and conditions with the suppliers and chooses and monitors the performance of suppliers.

Outbound Logistics of Intel

I-Distribution Channels

Intel partners up with various distribution channels and 3rd party logistics services providers for the distribution and transportation of goods, suppliers, components, and finished goods. The company makes sure to partner up with 3PL companies that would provide the safe and timely delivery of supplies at the required destinations.

Operations of Intel

I-Manufacturing Facilities

Intel has roundabout 10 production and manufacturing facilities; 4 of them are testing and assembly units, and the remaining 6 are wafer fabrications. The role of production and manufacturing facilities is wafer silicon testing, assembling, and manufacturing. However, these all facilities function as one unit and entity for a flexible supply chain. The location of the wafer fab and manufacturing facilities is in the following areas;

  • Chengdu
  • Vietnam
  • Malaysia
  • Costa Rica
  • Israel
  • Ohio
  • Ireland
  • New Mexico
  • Arizona
  • Oregon

Facts and Numbers about Intel Manufacturing

  • 35 thousand tons of steel are required to build one semiconductor fabrication
  • 16000 companies support the supply chain operations of Intel
  • Produces 300 quadrillion transistors annually
  • Employed 35000 employees at its production, supply chain, and operations facilities

Marketing & Sales of Intel

I-Innovation & Different

The marketing strategic approach of the technology company Intel is developing differentiated and innovative products and devices for the customers. The objective of the company is to develop something new and gain a competitive edge. However, the uniqueness and product differentiation helps the company to attract the attention of tech customers.

II-Integrated Marketing Campaign

Intel employs multiple media channels for the marketing and promotion of its production and brand. They are like social media platforms, digital media, TV, print media, influencer marketing, and various others. However, they all help the company amplify the customer market reach and increase the conversion rate.

Services of Intel

Along with silicon semiconductors, Intel offers a wide range of services to customers and client companies; some of them are as follows;

  • Customized gaming solutions
  • FPGA gaming design services
  • Data packaging services
  • Brain Frame AI
  • Pratexo Studio
  • Electronic product development form concept
  • AI voice engineering and consultation
  • Digital signage
  • Design and architecture
  • Customized imaging design

Supporting Activities of Intel

Some of the main supporting activities in the value chain analysis of Intel supply chain analysis are as follows;

Infrastructure of Intel

Intel has established a very large infrastructure of production and manufacturing facilities, suppliers network, warehouses, and distribution network. The well-developed infrastructure allows the technology company to smoothly perform its various operations and time manufacture and deliver the finished products to the end consumers.

HRM of Intel

Intel has employed over 124800 employees to manage its global operations. The human resource management department of the company plays a key role in creating an innovative working environment; providing equal opportunities for all in the recruitment process, and fair treatment of all the employees.

Technological Development of Intel

Intel invested approximately 16.05 billion USD in research and development for tech innovation. Heavy spending on research and technological development shows the company’s strong commitment to innovation and creativity. As a result, Intel has established a strong brand image and positioning in the market. It allows the company to develop efficient methods of production, reduce waste, and effective semiconductors.

Procurement of Intel

Intel is highly cautious about ethical sourcing and procurement of raw materials, supplies, and components. The company has set up clear regulations for supplier companies to protect the interest of ordinary workers in far-off distant locations.

Conclusion: Intel Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After a careful study of the value chain analysis of Intel; we have realized that Intel is the world’s leading technology and semiconductor manufacturing company. If you are learning about the Intel value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.

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