Abstract
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.
Extract
[...] 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. AMD has to convince users to upgrade and/or change their operating system easily. [...]
[...] Here, the difference is made by the volume sold by Intel and therefore their larger financial capacity to invest on innovations and expense in large marketing campaign. AMD has to be careful with its customer centric approach strategy. Building long-lasting and strong partner relationships is necessary for the future. This approach could make a difference (advantage) over Intel, but the company needs financial resources. AMD doesn't have enough finance to do their best; it's the main weakness of the company. [...]
[...] 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. [...]
[...] The culture of customer centric approach will stay, it is a long term strategy, whereas products are short term. "you don't come to AMD just to build product. You come to change the world. And we're going to change the industry". This approach empowered the business, by listening to customer's voice: "The Voice of the Customer is AMD's competitive advantage. We constantly refine and strengthen our business processes, metrics and systems - not to achieve innovation for innovation's sake, but to enhance customer loyalty." Henri Richard Chief Sales & Marketing Officer8. [...]
[...] Will AMD's customer centric approach be a source of advantage over Intel? 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. [...]
