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Prepared by :

Rutvij Bhatt (6)


Hetal katara (45)
Akshay jadav (38)
Firoz sayid (89)

Submitted to :

Pro.Deboditya Mohanty.

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INDEX

1 Acknowledgement 3
2 Preface 4
3 Strategic analysis 5
4 HCL 6-7
5 AMD 8
6 INTEL 9-13

Acknowledgement

Aknowledgement

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3
4
5
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We would like to express our sense of gratitude to all those who
have helped us in successfully completion of the study and report
of “study of INTEL with special focus on HARDWARE
INDUSTRY”.

We are very grateful to Dr. Chinnam Reddy, The director and


Prof., Project guide the core faculty of SKPIMCS for giving us
opportunity to under go project training and experience the most
competitive environment in today’s market.

We are also grateful to Mr.Ramalulu, the librarian of S.K.P.IMCS


for giving us secondary information about the same.

Besides all those mentioned above, we would like to express our


heartiest sense of gratitude to all those who has supported us in our
endeavors directly or indirectly.

We are glad to thank many people who have directly or


indirectly helped us to make a financial report.

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Preface

As we all know that business can be broadly defined as the activity


concerned with planning, raising, controlling and administering of
funds used in the business, we can understand the importance of
doing a strategic report. As to get the knowledge of strategic
Management and Personnel Management.

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Made-in-India strategy works for HCL Insys
Even as everyone was all set to bury Indian PC brands, HCL Insys came out with a
stellar performance last year that proved that Indian brands still had the ability to
win on home turf. There’s a lot that other Indian players could learn from HCL Insys’
strategy in PCs and other segments. Gaurav Patra explains what this IT major got
right, and analyses future prospects in the light of shifting trends in the business

Just when the whole PC industry was in the throes of a recession and analysts were
screaming negative growth rates, HCL Infosystems surprised quite a few when it
registered a 27 percent growth rate over the last year. The company gained the No 1
PC desktop vendor ranking for the year 2001, with a market share of 8.6 percent. In
fact, today it is one of the few Indian brands that continue to hold their own against
the MNC brigade—Zenith’s the only other name that comes to mind. From a
company that used to sell boxes, HCL Insys has now emerged as a leading systems
integrator, selling solutions, while also offering IT services and consulting services.

It is interesting to trace the transformation of a company that was earlier identified


by the ‘hardware’ tag to an ‘end-to-end solutions provider,’ with interests across
domains such as software, networking and consulting. A look at the strategy followed
by HCL Insys throws interesting pointers for the rest of the industry. The number
one tag on the PC front (with the HP-Compaq deal, HCL goes back to No 2 now) has
come as a result of clever marketing strategies, and aggressive expansions. HCL has
always been very strong on the government front. But when things started going bad
on other fronts—for instance, when the metros were showing stagnation rates, HCL
Insys went ahead and expanded aggressively in B&C class cities to boost volumes. In

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addition, the company initiated schemes like consumer finance to lure the reluctant
PC buyer.

Different strategies for different segments

But the strategy to gain market share in difficult times and reap benefits when the
industry recovers has come at a cost. For instance, industry analysts say that HCL
has given massive discounts in the products business to gain market share. Evidence
lies in the fourth quarter (AMJ 2002) performance of the company, where though the
products and related services business contributed 95 percent of sales at Rs 382.94
crore, profits before interest and tax stood at just Rs 7.24 crore—56 percent of total
profits before interest and tax (PBIT). The profit before interest and tax margins
were dismal at 1.9 percent as compared to 4.4 percent during the quarter ended
March 2002.

In addition to the PC segment, the company also took several innovative initiatives in
other sectors to boost revenues. Take for instance the strategy of the company in
the notebooks segment. The move to enter newer segments like education and
consulting in the notebooks business has yielded great results. Proof of success lies
in the fact that HCL Insys has already bagged big orders from the Indian School of
Business and PricewaterhouseCoopers. The second part of the notebooks strategy
has been to aggressively woo the SME segment with newer, cost-effective models.

The telecom business has also recorded impressive growth. For instance, the
company bagged telecom equipment orders from IIT Kanpur for 5,000 lines of MD
Ericsson EPBAX and 500 lines of an ADSL solution. Looking at the robust growth from
this segment, the company has set up the India remote support centre for providing
support services to all HCL Infosystems’ customers.

And while there have been doubts on the long term viability of the retail ISP
business, HCL Infinet, the fully-owned subsidiary of HCL Infosystems, is betting big
on its technical expertise to boost revenues. Positive indications can be seen in the
fact that the subsidiary has acquired 30 new corporate clients for VPN
implementation. These new clients come from different verticals such as
manufacturing, finance and the FMCG industry. Company officials are also betting on
the VoIP segment, which has recently been opened up to ISPs for Net telephony, but
there is still doubt on whether this sector will generate enough volumes for any ISP,
leave alone HCL Infinet.To take advantage of the boom in the call centre business,
the company has also started a unit that it terms as ‘call centre consulting’. Under
this initiative, the company will help prospective clients wanting to enter the call
centre business with its knowledge base of hardware and systems integration, and
experience in call centre operations itself.
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Software services
Though the majority of HCL Insys’ revenues continue to come from hardware sales
and related services, the relatively small software services portion could be a
surprise packet for the future. For instance, though the software services part
contributed just 5 percent of sales, margins have zoomed from 6.5 percent in the
quarter ended March 2002, to 29.4 percent in the quarter ended June 2002. The
company has a good de-risking model through this segment, and has spread its
business over different geographies. Going forward, the company expects 40 percent
of revenues coming from the domestic and export services, about 30 percent from
products and system integration and about 30 percent from software exports.

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Other strategies

In line with offering competitive pricing keeping in mind the price-sensitive nature of
the Indian market, HCL Insys has made significant investments in the Professional
Services Organisation (PSO), the Support Services Organisation (SSO) and in its
manufacturing plants at Noida and Pondicherry. The build-up of the services business
(both PSO and SSO) enables HCL Insys to offer complete solutions as well as raise
manufacturing volumes in line with international standards. The increasing focus on
integrated enterprise solutions has also strengthened HCL Infosystems’ SSO’s
capabilities in supporting installation types ranging from single to large, multi-
location orders. The SSO, which comprises of a direct support force of over 800
members, is operatOne more important arm in HCL Insys’ strategy has been the
Frontline division that markets national and international brands of computer
systems (including Toshiba notebooks) and peripherals within the country. With its
extensive network of 800 resellers across 300 cities, the division actively promotes
the penetration of PCs in the home and the small office/home office (SOHO)
segments. ional at 150 locations across the country and is the largest such force in
the IT business.

The competition

The fact that the company has not only withstood the MNC attack but has actually
managed to upstage them speaks volumes about the effectiveness of the company’s
strategies-and this, all the more when you see the performance of other Indian
brands slipping away. A three-pronged approach has helped the company to keep
the MNC attack at bay. For instance, for the home segment, the company has tried
to woo the consumer with multimedia-rich PCs. For the commercial segment, there is
the Infinity range packed with features that any office would require.

The third part of the strategy is to totally focus on Intel servers. HCL works very
closely with Intel in this area, and was the first to offer an Itanium-based server in
India. Intel’s game plan is to dominate the lucrative high-end 64-bit space where the
enterprise moolah lies, and HCL has cleverly ensured that it will get a piece of this
action too.

Impact of the HP-Compaq merger

The HP-Compaq merger is one of the greatest factors of concern for the company—
for that matter, for every hardware vendor. This is because of the change in market
dynamics thanks to this merger, which is expected to help HP-Compaq become the
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next hardware powerhouse. But HCL thinks this development also has some positive
aspects for them.

“Any development has two sides. In this case, the plus side is that there is one
competitor less to deal with. Because of the HP-Compaq merger, today there is only
HP and IBM for us to compete with,” says George Paul, associate vice president,
Marketing at HCL Insys. Further substantiating his statement Paul adds, “We believe
one-plus-one is never two in this business. So, this merger will not have that much
of an effect on the Indian hardware industry.”

However, as many analysts have pointed out, the other positive aspect of the merger
is that the new entity has the Compaq brand of PCs and HP printers under one
umbrella. However, Paul terms it more as a ‘logistical advantage’. He says he is
confident on this front because of HCL Insys’ established presence in the market with
countrywide outlets and so many products to serve the Indian market, which no
other player has. “We feel that we will actually gain from this [HP-Compaq] merger,”
says a confident Paul.

Customer’s the king

In a market like India, where customer relationship management is still emerging as


a niche segment, HCL Insys has set examples for others. The company today boasts
of being able to retain more than 60 percent of its customers.
To achieve this figure, the company adopted a three-tier approach. The most
important strategy as far as customer satisfaction is concerned, is the technology
strategy. Over the years, HCL Insys has ensured that it came out with latest
technologies for Indian customers. Thanks to this philosophy, HCL simultaneously
releases technology in India as and when it is released overseas.

Another strategy that the company uses is ensuring it reaches the customer where
he is. Today, HCL has built a 900-strong partner reseller infrastructure, apart from
its 150 retail outlets. These are the two channels used to reach the customer. Using
this structure, the company has direct sales and the commercial space strategy in
place.
The third part of the strategy is the services strategy. Over the years, the company
has put in place a support infrastructure that spreads out across 150 support
locations in the country with principal support engineers stationed at these locations.
Services support is also extended through partners. The company has also set up a

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number of call centres for the services business. In almost every state in India, HCL
Insys has call centres, and in some of the larger states, there are multiple call
centres.

And towards becoming a dominant player in providing global IT services HCL Insys
has plans to further consolidate its hardware and services businesses. It has set up
overseas subsidiaries in the US, the UK, Singapore, Malaysia and Australia.

The bottom line

While the real effects of the HP-Compaq merger will only be evident with time, HCL
Insys has definitely ensured that it won’t just simply disappear, as so many Indian
PC vendors have done. Rather, by using innovative strategies, entering new business
areas to de-risk the box business, and spreading its tentacles as far as possible in
this vast country, HCL Insys has ensured that it will remain a potent force even in
the future. And again, while only time will tell if HCL will regain the No 1 tag from
HP-Compaq, it has definitely ensured that it remains within striking distance. That’s
more than what can be said for many other Indian players.

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Swot analysis
The HCL Technologies - SWOT Analysis company profile is the essential source for top-
level company data and information. The report examines the company’s key business
structure and operations, history and products, and provides summary analysis of its key
revenue lines and strategy.

HCL Technologies (HCL) is an India based global information technology (IT) company
that provides a wide range of products and services for large and medium sized
organizations, such as software services, business process outsourcing (BPO) services
and infrastructure management services. The company operates in the US, the Europe,
Asia Pacific and Japan. It is headquartered in Noida, India and employs about 47,955
people. The company recorded revenues of INR60,687.4 million (approximately $1,377
million) during the fiscal year ended June 2007, an increase of 32.7% over 2006. The
operating profit of the company was INR14,359.8 million (approximately $325.8 million)
during fiscal year 2007, an increase of 75.7% over 2006. The net profit was INR13,183.1
million (approximately $299.1 million) in fiscal year 2007, an increase of 90.9% over
2006.

Scope of the Report

- Provides all the crucial company information required for business and competitor
intelligence needs
- Contains a study of the major internal and external factors affecting the company in the
form of a SWOT analysis as well as a breakdown and examination of leading product
revenue streams
- Data is supplemented with details on the company’s history, key executives, business
description, locations and subsidiaries as well as a list of products and services and the
latest available company statement

Reasons to Purchase

- Support sales activities by understanding your customers’ businesses better


- Qualify prospective partners and suppliers
- Keep fully up to date on your competitors’ business structure, strategy and prospects
- Obtain the most up to date company information available

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Introduction of AMD

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Semiconductors are components used in a variety of electronic products and
systems. An integrated circuit,or IC, is a semiconductor device that consists of many
interconnected transistors on a single chip. Since the invention of the transistor in
1948, improvements in IC process and design technologies have led to the
development of smaller, more complex and more reliable ICs at a lower cost per
function. In order to satisfy the demand for faster, smaller and lower-cost ICs,
semiconductor manufacturers have continually developed improvements in
manufacturing and process technology. ICs are increasingly being manufactured
using smaller
geometries on larger silicon wafers. Use of smaller process geometries can result in
products that are higher performing, use less power and cost less to manufacture on
a per unit basis. Use of larger wafers can contribute further to a decrease in
manufacturing costs per unit and to an increase in capacity by yielding more chips
pewafer.Computing Solutions

The x86 Microprocessor Market


A microprocessor is an IC that serves as the central processing unit, or CPU, of a
computer. It generally consists of millions of transistors that process data and control
other devices in the system, acting as the brain of the computer. The performance of
a microprocessor is a critical factor impacting the performance of a computer and
numerous other electronic systems. The principal indicators of CPU performance are
work-per-cycle, or how many instructions are xecuted per cycle, clock speed,
representing the rate at which a CPU’s internal logic operates, measured in units of
hertz, or cycles per second, and power consumption. Other factors impacting
microprocessor performance include the number of CPUs, or cores, on a
microprocessor, the bit rating of the microprocessor, memory size and data access
speed.
Developments in circuit design and manufacturing process technologies have
resulted in significant advances in microprocessor performance. Currently,
microprocessors are designed to process 32-bits or 64-bits of information at one
time. The bit rating of a microprocessor generally denotes the largest size of
numerical data that a microprocessor can handle. Microprocessors with 64-bit
processing capabilities enable systems to have greater performance by allowing
oftware applications and operating systems to access more memory. Moreover, as
businesses and consumers require greater performance from their computer systems
due to the exponential growth of digital data and increasingly sophisticated software
applications, semiconductorcompanies have transitioned from designing and
developing single-core microprocessors to also designing and developing multi-core
microprocessors, where multiple processor cores are placed on a single die or in a
single processor. Multi-core microprocessors offer enhanced overall system
performance and efficiency because computing tasks can be spread across two or
more processing cores each of which can execute a task at full speed. Moreover,
multiple processor cores packaged together can increase performance of a computer
system without greatly ncreasing the total amount of power consumed and the total
amount of heat emitted. This type of “symmetrical multiprocessing” is effective in
both multi-tasking environments where multiple cores can enable operating systems to

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prioritize and manage tasks from multiple software applications simultaneously and also
for “multi threaded” software applications where multiple cores can process different
parts of the software program, or “threads,” simultaneously thereby enhancing
performance of the application. Businesses and consumers also require computer systems
with improved power management technology, which allows them to reduce the power
consumption of their computer systems thereby reducing the total cost of ownership.

SWOT ANALYSIS

Strengths:

• Capacity to produce high speed microprocessor


• Favorable investment strategy in Samsung and micron technology
• Cost advantages over competitors
• Good financial position
• Experienced Personnel
• High market share
• High quality products/services
• Innovative products/services
• Strong supplier relationships
• Brand recognition through logo campaign
• Largest company in microprocessor market
Weaknessese:

• Expensive and difficult making of memory chip


• Flaw in pc boards
• Customer concentration

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Opportunities

• Acquisitions
• Available technological innovations
• Good financial position
• Expand product/service lines
• Intel may reap more benefit due to investment in micron and Samsung
• Complementary relationship with Microsoft to this point (OS and
softwareapplications built specifically for Intel-powered machines)

Threats;

• Timing: operating system performance far behind microprocessor


performance due to Moore’s Law strategy
• Microsoft: logo competition on computers and vendor
advertisements, NSP conflict
• Slowing pc market may hamper AMD’s profit.
• Competitor’s actions
• Innovative products/services of competitors
• New competitors entering the market
• Rising costs of business

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INTRODUCTION

Intel Corporation (Intel) is a leading semiconductor chip making company. Over 80% of
the personal computers in use around the world today are based on Intel Architecture
microprocessors. The company develops advanced integrated digital technology
platforms and components, mainly integrated circuits, for the computing and
communications industries. Intel’s products consist of microprocessors, chipsets,
motherboards, flash memory, wired and wireless connectivity products, communications
infrastructure components, including network processors, and products for networked
storage. The company largely operates in the Asia Pacific and the Americas. It is
headquartered in Santa Clara, California and employs 86,300 people. Intel’s customers
include original equipment manufacturers (OEMs), original design manufacturers
(ODMs), PC and network communications products users and other manufacturers,
including makers of a wide range of industrial and communications equipment. The
company recorded revenues of $38,334 million during the fiscal year ended December
2007, an increase of 8.3% over 2006. Intel’s performance improved on account of
increased microprocessor and mobile chipsets. The operating profit of the company was
$8,216 million during fiscal year 2007, an increase of 45.4% over 2006. The net profit
was $6,976 million in fiscal year 2007, an increase of 38.3% over 2006. Intel is the
world’s largest semiconductor chip maker, based on revenue. Company develops
advanced integrated digital technology products,primarily integrated circuits, for
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industries such as computing and communications. Integrated circuits are semiconductor
chips etched with interconnected electronic switches. Intel also develops platforms,
which we define as integrated suites of digital computing technologies that are designed
and configured to work together to provide an optimized user computing solution
compared to ingredients that are used separately. Company’s goal is to be the preeminent
provider of semiconductor chips and platforms for the worldwide digital economy.
Company offers products at various levels of integration, allowing our customers
flexibility to create advanced computing and communications systems and products.

Products

intel currently offers products in a broad range of categories. These products include:

• microprocessors with one, two, or four processor cores, designed for desktops,
workstations, servers, notebooks, embedded
products, communications products, and consumer electronics;
• chipsets designed for desktops, workstations, servers, notebooks, embedded products,
communications products, and consumer
electronics;

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• motherboard products designed for our desktop, workstation, and server platforms;
• NAND flash memory products primarily used in digital audio players, memory cards,
and system-level applications, such as solidstate
drives;
• NOR flash memory products (during the first quarter of 2008, we expect to complete
the divestiture of our NOR flash memory assets to Numonyx;
• wired and wireless Internet connectivity products, including network adapters and
embedded wireless cards, based on industry standard technologies used to translate
and transmit data in packets across networks;
• other communications infrastructure products—including network processors,
communications boards, and optical transponders—that are basic building blocks for
modular communications platforms;
• networked storage products that allow storage resources to be added to either of the
two most prevalent types of networking technology: Ethernet or Fibre Channel; and

• Multi-core processors. Multi-core processors contain two or more processor
cores, which enable improved multitasking and energy-efficient performance because
computing tasks can be distributed across multiple cores.

SWOT ANALYSIS

Strengths:

• Capacity to produce high speed microprocessor


• Rambus capacitiy to produce high memory chip
• Intel efficient money and market muscule
• Favorable investment strategy in Samsung and micron technology
• Cost advantages over competitors
• Good financial position
• Experienced Personnel
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• High market share
• High quality products/services
• Innovative products/services
• Market Leadership
• Strong supplier relationships
• Brand recognition through logo campaign
• MICROSOFT’S Dependency on Intel for fast processors
• Largest company in microprocessor market
• Brand recognition built through Intel Inside campaign (starting 1990)
• Innovation: Moore’s Law strategy, as well as IAL, allows for
increased innovation and development of new technologies to
increase demand

Weaknessese:

• Poor rambus strategy


• Expensive and difficult making of rambus memory chip
• Flaw in pc boards of rambus
• Customer concentration
• IAL’s need for identity separate from Intel for credibility(INTEL
ARCHITECTURE LAB)

Opportunities

• Acquisitions
• Available technological innovations
• Good financial position
• Expand product/service lines
• Improvement in economic climate
• Intel may reap more benefit due to investment in micron and Samsung
• High profit margin due to its efficient microprocessors
• Complementary relationship with Microsoft to this point (OS and
softwareapplications built specifically for Intel-powered machines)
• Intel Capital
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• ProShare: videoconferencing technology could stimulate demand for
microprocessors, opportunity for an Intel-branded product
• NSP: could increase demand, if Microsoft situation can be resolved

Threats;

• Timing: operating system performance far behind microprocessor performance


• due to Moore’s Law strategy
• Microsoft: logo competition on computers and vendor advertisements, NSP conflict
• Slowing pc market may hamper intel’s profit
• Dependency on rambus memory chip will badly effect its Pentium 4 microprocessor
chips market along with existing.
• Lack of support to rambus from memory chip producer and chip maker will make the
situation more worse.
• Competitor’s actions
• Innovative products/services of competitors
• New competitors entering the market
• Rising costs of business

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PEST analysis

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POLITCAL FACTOR:The political situation in america is very
stable so company has got the advantage of this
situation . Environmental regulations and protection on
inetl is moderate. Tax policies are favorable to the
company. International trade regulations and restrictions
are made by America and so it is naturally will be in favor
of the company.

Economic factor: Economic growth of America is slowing


down.interst rates are decreasing.governent spending on this
industry is very high.in America this industry is in maturity stage.
Social factors:people of America are technology oriented ,the
income distribution is maintained very well so the company can
go forward for large market share.life style of the people is such
that they accept change in technology very early..
Technological factor: the rate of technology transfer in America is
very high.there are every day new inventions and development are
made in this industry.

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The Five-Forces Model of Competition (Porter’s approach)
Potential development
of substitute products

Rivalry
Bargaining among Bargaining
power competing power
of suppliers firms of consumers

Potential entry of new


competitors

• The threat of new entry of competitors is nil due to slowing pc


market.
• The threat of substitute in the form of slower and cheaper
memory chip.
• the bargaining power of buyer is more due to slowing pc
market.
• The bargaining power of supplier is increased due to availability
of cheaper type of memories.
• the degree of rivalty between existing competitors is quite
obvious from the legal suit by rambus on Hitachi and other
companies.

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