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Intel as the Multinational Corporation

Intel is known thanks to its competitive working environment, high-qualified engineers, impressive social packages, and preferable stock options. As for today, it is one of the largest and most influential semiconductors around the world. This multinational corporation has a number of characteristics which explain its success, loyalty and profitability.

android_intelGoing globally might be a bit easier for IT or construction company, but still is is a big work. MNC (multinational corporation) assumes something large-scale and long-term. Ther first feature of Intel, which catches an eye, is its massive production on the international level. Cross-cultural activities usually involve active research and development.

Without searching for new alternatives and innovations, it is impossible to survive foreign markets. Intel possesses a range of progressive R&D facilities across the world. This multinational feature is supported by the continuing personnel trainings on economic and political factors that might have an impact on the company. Before entering any market, Intel ensures the economic stability of a targeted country.

Company’s managers also make sure all manpower gets appropriate training and works only with the latest equipment. Intel can hire citizens of any country.

 

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The company pays attention to the number of macroeconomic indicators before making a decision to invest. The ability to cope with any local political or economic problems with the minimum losses is another feature of MNC. I.e., when Intel faces acute changes in taxes issued by the government of a particular country, its management solves it via lobbying individually and with like-minded domestic and foreign enterprises.1[1]

The ownership of Intel is shared among the parent company and branch offices.

intel-sign-23To be among the multinational players, Intel has to perform stable growth, substantial profit margins and high manufacturing capacity. It corresponds to the primary condition for a company to be called multinational – competitive advantage. Intel managers link efforts around the globe to pick design and manufacturing expert from each country-representative. They aim to create a product that will satisfy the planet’s entire population regardless the differences in ages, genders, races, religions, social classes, and outlooks.

PC industry is global by its essence, so it has almost no barriers to entry in terms of the global market. The biggest market share Intel gained in the field of PC is a proof of its correct global strategy.

Another feature of Intel as of successful multinational enterprise is its branches located on the territories of four different cultures: U.S., EU, Japan, and South Korea. In Japan and Korea, Intel faced significant restrictions due to the local laws and regulations. It had to adapt to their conditions to avoid banning. The issues were based on the antitrust law and antimonopoly act respectively. Only a real multinational enterprise could find the compromise to stay in the game.

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To sum up, I can say that Intel is a great example of efficient multinational corporation due to its high-efficiency, sustainable competitive advantages, usage of advanced technology, maximum operation, monopolistic market, type of ownership, and worldwide presence.

 

Reference

[1] Nathan M. Jensen, Nation States and the Multinational Corporation: A Political Economy of Foreign Direct Investment (New Jersey: Princeton University Press, 2006), 96-97.