Professional management skills

Résumé du document

By way of an introduction, we have to do a small overview of semi conductor industry and see where the second worldwide larger microprocessor designer and maker, AMD, is. The high gross margins rate of chip makers compared to the other actors of the value chain IT goods industry (PC, server and mobile) shows us that microprocessors and software/device (Microsoft) are the two key points of the industry. For example, Intel and AMD, microprocessor maker had respectively a gross margin of 56.7% and 39.3% from 2003 and IBM and Dell, PC manufacturers, got 37% and 17.9% in 2003 (Exhibit 8). It is competitive industry drives by the dominant Intel which have known in 2003 a rupture thanks to AMD. This company is a distant follower of Intel which has a really dominant position on the market which can influence all their providers and the entirely industry. In order to differentiate its company, AMD has chosen to adopt a new innovative strategy to counter Intel dominance. So we are wondering how the move of AMD can be effective, yield commercially viable and by what means?

Extraits

[...] N.a pres release of AMD corporation about its current strategy, accessed on 25 October 2010 on http://www.mainecreative.com/Samples/AMD- case.pdf N.a, from Intel corporation about microprocessor industry links and influences, published in 2010, accessed on 23 October 2010 on http://www.intc.com/intelAR2009/business/industry/index.html [4]N.a, figures from the association of semi conductor association in 2006, published in 2007, accessed on 2 November 2010 on http://www.gartner.com/DisplayDocument?id=480913 [5]Shih-Lung Wu “Industry dynamics within semi conductor value chain” accessed on 21 October 2010 on http://dspace.mit.edu/bitstream/handle/ 1721.1 /29721/54038520.pdf;jsessionid= 591553D23801896302C645F1EC04C9F7?sequence=1 N.a, February 2010, AMD customer concentric approach explanations, accessed on 3 November 2010 on http://www.sap.com/solutions/business- suite/crm/pdf/CSS_AMD_ROI_full.pdf E. Ofek, L. Barley, January 2007, a customer-centric approach to innovation” published in Harvard Business School Review. [...]

[...] Will it yield commercially viable innovations that are dramatically different than those Intel will develop? At the beginning, if we compare the two product line and innovations of AMD and Intel, we can notice that the two companies have almost the same product line. Indeed, even if AMD is a little bit more efficient than Intel‘s product range, the brand awareness and credibility of Intel is largely higher. Consequently, their own competitive advantages are similar but Intel has the position on AMD. [...]

[...] So this would also be a good argument to save company money. Until now, AMD have communicated on only one of the two main points to push to purchase an IT decision maker: the corporate brand is really high now but they do not know the product line. So the campaign has to move on this point. Customers are at this point very resilient to move of technology to change from Intel to AMD or to upgrade. How concerned should AMD be about Intel's imminent new product plans? [...]

[...] Nevertheless, AMD has an innovative with an adapted marketing campaign that is already recognized by the current customers. The firm stays the second largest microprocessor company after Intel but AMD do not has the volumes of Intel with 83% of the market against 21% for AMD according to the semi conductor association in 2006.[4] So, the collaboration with providers, the very important expenses in marketing and the same level of technology are real threats from Intel to AMD's growth plans because the brand recognition, the influence and the large power of funds that benefits Intel is widely higher than AMD. [...]

[...] It will a hard task to do but if they manage to find some followers, it can succeed. INTRODUCTION By way of an introduction, we have to do a small overview of semi conductor industry and see where the second worldwide larger microprocessor designer and maker, AMD, is. The high gross margins rate of chip makers compared to the other actors of the value chain IT goods industry server and mobile) shows us that microprocessors and software/device (Microsoft) are the two key points of the industry. [...]