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Competitive Strategies Case Study

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Case Title:

AMD vs. Intel: Strategies for growth

Publication Year : 2006

Authors: Jyothi R Javalgi, Doris John

Industry: Engineering, Electrical and Electronics

Region:US

Case Code: COM0142C

Teaching Note: Available

Structured Assignment: Available

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Abstract:

Advanced Micro Devices (AMD), the global supplier of integrated circuits for personal and networked computing and communications, was the second-largest supplier of x86-compatible processors It was best known for its Athlon, Opteron, Turion 64, Sempron, and Duron lines of x86-compatible processors. The x86 microprocessor markets had become extremely competitive as major technological breakthroughs were taking place and new products were being introduced. Taking advantage of the changing scenario, AMD adopted strategies that helped it emerge a much stronger and more focused challenger to Intel, its closest competitor and market leader. Intel, the world’s largest manufacturer of x86-compatible processors, monopolized the market till 1991, when AMD released its Athlon processor. Over the years, AMD focused on delivering innovative products and technologies with customer needs in mind, proving to be a tough contender to Intel. In July 2006, AMD planned to acquire Canadian graphics chip maker Array Technologies Incorporated (ATI), one of the top three graphic chip makers. Analysts felt that this acquisition would empower AMD to compete with Intel across a broader product portfolio, including home entertainment, mobile computing, consumer electronics, high definition TVs and video games. The battle between AMD and Intel was moving beyond processors to a new battle over the entire platform.

The case gives an overview of the competitive strategies of AMD and Intel in the global microprocessor market. It converses in detail the establishment, growth and the shift of AMD from being a clone of Intel processors to becoming an innovator. The case also brings to light the fact that the battle between AMD and Intel was now moving beyond processors to a new battle over the entire platform and it remained to be seen as to who would emerge the winner in the long run.

Pedagogical Objectives:

  • To emphasise how a small player can become a dominant one
  • To discuss AMD’s Growth Strategies encompassing Virtual Guerilla and Customer Centric strategies.

Keywords : AMD; Intel; Microprocessor Industry; Semiconductor Industry; Virtual Guerilla Strategy; Competitive Strategies Case Study; Customer Centric Strategy; ATI; Market Leader; Jerry Sanders; Paul Otellini; Intel's restructuring efforts; Strategic partnerships; Innovator; R&D Expenses

Contents : 
Competitive Strategies of AMD Vs Intel
AMD Vs Intel: The Road Ahead
Unit Processor market share by segment (Intel + AMD only)
AMD and ATI: A Processing Powerhouse
New Logo of Intel

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