AMD was founded in 19691 by Jerry Sanders, formerly of Fairchild Semiconductor. The company started to focus on microprocessors in the mid 1970s. It designed and manufactured microprocessors for the computing, communications, and consumer electronics market. The company employed 9,000 employees2. In 2005, revenues were $ 5.8 billion, a 17% increase over 20043. Traditionally, AMD had been a distant follower to Intel, which had a dominant position in microprocessors for the server and personal computer markets. However, Intel's dominance was eroding as Opteron gained acceptance and AMD focused on "customer-centric innovation". Intel was founded in 19684 by Gordon Moore, and Robert Noyce also formerly of Fairchild Semiconductor.
AMD always offered low-priced clones of Intel's products, with high performance. What strategies use the brand to compete with Intel? In order to respond to this question we will see in a first part what would it take for AMD to see a significant increase in its market share processors used in corporate desktops and notebooks, then we will evaluate AMD's "power campaign"; in a third part the threats of intel's imminent new product plan; the new customer centric approach in another part, and its potential application into viable innovation.
[...] AMD NEED A GOOD ADVERTISING CAMPAIGN, TO INNOVATE ON THEIR PRODUCT LINES, TO MAKE MORE SALES, AND WITH BENEFITS INVEST IN RESEARCH AND DEVELOPMENT. AMD HAVE TO KEEP IN MIND THAT THEY WORKED IN A VOLATILE INDUSTRY (TECHNOLOGY), AND THERE WILL ALWAYS BE UPS AND DOWNS. Bibliography 1 E. Ofek, L. Barley, January 2007, a customer-centric approach to innovation” published in Harvard Business School Review 2 Spansion , Inc. IPO in December 2005 Company 10-Ks 3 Dean Mc Carron, Mercury Research 4 Intel information on the [...]
[...] THE “CUSTOMER CENTRIC APPROACH” TO INNOVATION IS A METAPHOR WHICH SYMBOLIZES THE EXISTING PARTNERSHIP BETWEEN AMD AND ITS CUSTOMERS. THE AIM OF THIS STRATEGY IS TO LISTEN TO CUSTOMERS' NEEDS AND FEEDBACKS (WHAT THEY REALLY WANT), AND THEN TO ADAPT THE OFFER INTO VIABLE INNOVATIONS. THUS, THEY BETTER KNOW THEIR TARGET, AND THEY KNOW WHAT THEY SHOULD DO OR SHOULDN'T DO. AMD listen carefully to things it can improve. The company uses empathy yourself in their shoes. Get beyond, faster, cheaper, better”. [...]
[...] AMD customer centric approach is a real innovation for this industry, but it have to be integrated rapidly providers to argue against Intel otherwise it will stop AMD's development and it will become a huge financial risk for AMD. Will it yield commercially viable innovations that are dramatically different than those Intel will develop? IF WE COMPARE THE TWO RANGE OF PRODUCT AND THE DIFFERENT INNOVATIONS OF AMD AND INTEL, WE CAN OBSERVE THAT THEY ARE QUITE THE SAME. AMD POSITIONED ITSELF ON PERFORMANCE AND PRICE, AND INTEL USES MORE IT'S NOTORIETY AND CREDIBILITY. [...]
[...] They promise to the consumers to be more agile, and a more efficient company. The company also planned to innovate and produce new chip design every two years. “it's the time to reinvent the desktop” The differences between Intel and AMD's product line is tend to decrease and Intel with this new line get more efficient products than AMD ones. So, the only one way of differentiation is now thanks to the marketing and the brand recognition, awareness and trust of their customers and partners. [...]
[...] Microsoft confirmed plans to build a 64-bit operating system for the processor. Then both HP and Sun used Opteron as a weapon against Dell. Dell didn't have yet Opteron, and Opteron was a better product with a superior price to performance ratio than what Intel offered. AMD build a huge part of its awareness thanks to Opteron, and it will help for the future lines. AMD has to : - Invest in research and development (innovation) ; - Increase the products' performance ; - Decrease the energy consumption of products ; - Keep good price performance ratio ; - Increase its awareness ; - Find attractive partners ; - Use interesting marketing initiatives to promote their products ; - Communication campaign ; - . [...]
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