Intel Corporation PEST and Value Chain Analysis Essay

Intel plenty PEST and Value ambit Analysis - Essay ExampleIn the year 2001, the IT industry faced global decrease in demand for IT products which adversely affected the balance of trade of US and separate countries (Buffet 2011). In this regard, the US regimen improved its tax laws, labor policy, tariffs and trade liberalization policies to attract the global consumption for IT products from US manufacturers. Robert (1990) undertook a study to examine the impact of Japanese trade liberalization policy and tariffs in semiconductor device commercialize on the US manufacturers. This positive political environment acts as an opportunity for Intel Corporation to capitalize upon its products and increase globally. 2) Economic Factors The US mixed economy has a GDP growth rate of 2.5 percent in the thirdly quarter of 2011 which is a decrease by 0.4 percent from previous year (Bureau of Economic Analysis). The internationalist Monetary Fund reported that the Gross World Product of t he US GDP is $15 trillion dollars that is 23 percent at the market exchange rates (Greyhill Advisors). Furthermore, it observed that this amount is equivalent to 20 percent of Purchasing Power Parity or PPP (DeNavas-halt, Proctor & Smith 2011). US ranks third largest exporter. Its public debt amounts to $15.03 trillion dollars and poverty is 15.1 percent according to 2010 estimates (Treasury). The CPI Inflation has been estimated as 3.5 percent between October 2010-2011 period (United States Bureau of Labor Statistics). According to 2009 estimates of World Bank, the US economy is largely based on its private sector enterprises accounting for 86.4 percent of its economy. The large contribution of private sector in US economy means an opportunity for Intel to expand and benefit from the overall affirmative macro-environment factors. However, PricewaterhouseCoopers conducted... Intel Corporation is the US atomic number 82 semiconductor manufacturer that maintains a significant global market share of semiconductor industry. In the young global recession has adversely affected the US economy. However, the recovery has created a awesome increase in the exports for semiconductor based microprocessor chips throughout the world. The US economys growth is largely due to the study contributions of this sector. As a result, the US economy is growing and encouraging the future revolution in the semiconductor technology. The global trade liberalization movement in response to the global demand for newer and updated technological products has lessen trade tariffs that US government welcomes with open arms. As a result, the growth of microprocessors and other PC components picked tremendous volume to become the largest contributor of revenue for the US economy. Intel Corporation has a favorable macro-environmental analysis which plainly has one issue and that is the unprecedented recession of the US economy. In terms of value chain analysis, Intel Corporation has a sou nd value chain that is helping it to maintain its competitive edge over other competitors like AMD.