Amd Advanced Micro Devices Amd  Research Proposal

Length: 10 pages Sources: 5 Subject: Business Type: Research Proposal Paper: #55037854 Related Topics: Intel Corporation, Antitrust Practices, Antitrust, Value Chain
Excerpt from Research Proposal :

Response is expected to be multi-faceted and brutal.

Technological change represents another key threat. As new technologies emerge and the end needs of users shift, the existing industry paradigm can shift quickly and decisively. For example, if the personal computer were to become outmoded in the next ten years, AMD's capture of the market leading manufacturers would be worthless. This is entirely possible, given the pace of change. AMD must always be on top of change in the industry, or risk being left behind.

Lastly, there is the risk of talent defection. AMD relies on top talent to develop its technology, to market the products, and to fight the legal battles. If their supply of talent were to be compromised, either by Intel or by startups, AMD would find it increasingly difficult to compete. They must ensure that their human resources systems are sufficient to attract and retain the top talent that is required to drive their business forward.

Analysis of Current Issues

There are three current issues facing AMD. The first is the competitive relationship with Intel. The firm has won a decision in Japan against Intel but similar action in the U.S. has been less successful. It remains to be seen whether or not AMD can parlay its success in the Japanese courts into increased market share in that country. Intel's response to AMD's recent exploitation of the regulatory system and marketing success has been to engage the company in a price war. AMD is going to need a complex, integrated strategy in order to not only fend off Intel attacks but to strike back at its much larger rival.

The second current issue is with respect to integrating ATI into the company and building the synergies that AMD management hopes will allow it to better compete against Intel. There are several culture issues that must be addressed in bringing a new firm into the fold. Moreover, building the communications systems that will facilitate knowledge-building and product synergies will take time. Furthermore, there is a high risk of talent defection from ATI as a result of this takeover. Too much defection could reduce the value of the transaction.

The third strategic issue is with respect to building share in the new portable device markets. AMD has an opportunity to establish market share in these growing segments and if it can do so, it can achieve substantial growth that will not only help revenues but will also help the company to build the critical mass necessary to battle Intel and other competitors.

Strategic Options

The first strategic option is to continue focusing on stealing PC makers away from Intel. There is significant room for expansion in this market and despite the rise in portable devices, there is no indication that personal computing is going to disappear anytime soon. This option has relatively low R&D costs...

...

This option, however, does not give AMD much chance to take advantage off the rapid growth in portable devices. Moreover, it places virtually the firm's entire revenue streams in the middle of a price war with Intel.

The second strategic option is to enjoy the gains made in personal computers and shift focus to building research competencies for a stronger platform in mobile computing. The company's efforts to this point have been disappointing and not at the technological fore (Gupalo, 2007), but there is a strong future in mobile computing and AMD may compete against firms other than Intel.

The third option is to continue to fight to open up geographic markets. There is significant untapped potential in these markets, as AMD has miniscule market share in many. However, this strategy involves taking on Intel head-to-head, and often in the courtroom during antitrust hearings. The strategy gained AMD a victory in Japan but with limited results and similar action in the U.S. failed. However, using the regulatory system to chip away at Intel may be the only way for AMD to tilt the competitive battlefield in its favor.

Recommendations and Justifications

It is recommended that AMD focus its efforts on building dominance in mobile computing. Intel built its market position today on the back of its strong relationship with Microsoft and subsequent dominance of the PC market in the 1990s. The same opportunity exists for the company that gets on board with the dominant mobile platform in the mid 2000s.

AMD is advised to continue its focused attacks on Intel as well. The market for computers is not going away any time soon and Intel remains a difficult competitor. The legal system challenges increase the corporate stakes, but have been a key part of the AMD philosophy for several years. However, prolonged legal battles that do not result in profit improvements would result in little more than Pyrrhic victories for AMD. The focus of the attacks should play to AMD's strengths, primarily in marketing but also with regard to technology.

The final recommendation for AMD is to focus energy on the integration of ATI into the company. The impacts of such a large acquisition should not be understated by management. Indeed, failure to properly integrate ATI will only result in number of negative outcomes for AMD (Schuler, 2003), including talent defection, excessive spending and an erosion of the firm's strong corporate culture. The acquisition is expected to have strategy benefits, but poor integration of an acquired firm can have an impact opposite of what was desired.

Works Cited:

MSN Moneycentral: AMD. (2009). Retrieved October 30, 2009 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=AMD&lstStatement=Balance&stmtView=Ann

Porter, M., adapted. (1985). The value chain. NetMBA. Retrieved October 30, 2009 from http://www.netmba.com/strategy/value-chain/

No author. (2007). SWOT analysis. QuickMBA. Retrieved October 30, 2009 from http://www.quickmba.com/strategy/SWOT/

Gupalo, D. (2007). AMD launches "puma" mobile platform. X-Drivers.com. Retrieved October 30, 2009 from http://www.x-drivers.com/news/hardware/164.html

Schuler, a. (2003). Post acquisition integration. Schuler Solutions. Retrieved October 30, 2009 from http://www.schulersolutions.com/post_acquisition_integration.html

Sources Used in Documents:

Works Cited:

MSN Moneycentral: AMD. (2009). Retrieved October 30, 2009 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=AMD&lstStatement=Balance&stmtView=Ann

Porter, M., adapted. (1985). The value chain. NetMBA. Retrieved October 30, 2009 from http://www.netmba.com/strategy/value-chain/

No author. (2007). SWOT analysis. QuickMBA. Retrieved October 30, 2009 from http://www.quickmba.com/strategy/SWOT/

Gupalo, D. (2007). AMD launches "puma" mobile platform. X-Drivers.com. Retrieved October 30, 2009 from http://www.x-drivers.com/news/hardware/164.html


Cite this Document:

"Amd Advanced Micro Devices Amd " (2009, October 30) Retrieved June 25, 2021, from
https://www.paperdue.com/essay/amd-advanced-micro-devices-amd-18100

"Amd Advanced Micro Devices Amd " 30 October 2009. Web.25 June. 2021. <
https://www.paperdue.com/essay/amd-advanced-micro-devices-amd-18100>

"Amd Advanced Micro Devices Amd ", 30 October 2009, Accessed.25 June. 2021,
https://www.paperdue.com/essay/amd-advanced-micro-devices-amd-18100

Related Documents
Amd Financial Statements Advanced Micro
Words: 1263 Length: 3 Pages Topic: Business Paper #: 12300018

The reduction in liabilities represents a move to reduce financial leverage in a period of tightening credit and risk profiles. The cash build-up too is an assertive move to combat liquidity concerns and build structural soundness to the balance sheet. AMD management implicitly understood that their internal financial condition was threatening to unravel the company with stagnant revenues and bloated expenses. As such the repositioning of AMD to take

Amd Analysis Revenue Net Income
Words: 867 Length: 3 Pages Topic: Business Paper #: 27693820

The company's stock history tells a somewhat similar story to this brief ratio analysis. After peaking at over forty dollars a share in 2006, the stock price fell dramatically and fairly consistently until bottoming out at just under two dollar per share in 2009 (Yahoo Finance, 2012). Since then, the rice has struggled back to a certain gain, though has largely remained stagnant hovering around eight dollar per share, and

Partnering With Amd Too Risky
Words: 2089 Length: 6 Pages Topic: Education - Computers Paper #: 52429583

AMD Analysis Advanced Micro Devices (AMD) is a company that has had varying fortunes and outcomes over the years. However, the last few years have been a definite downer for AMD as they are clearly moving in the wrong direction. However, rather than leave it to a quick and witty assertion, the author of this report will add some context and support for that statement. This will come in the form

Amd - Intel Duopoly After
Words: 1045 Length: 4 Pages Topic: Education - Computers Paper #: 49709493

They realize we have an alternative. That's something they really need to take seriously." [DAVID KIRKPATRICK] Further, AMD Opteron processor had one more advantage over Intel's processor. With a technology known as 'silicon on insulator' AMD processors used less electricity and produced little heat and were therefore much compact than Intel's processors that required more space for additional cooling fans. [DAVID KIRKPATRICK] AMD's processor also proved superior to Intel when

Business, Worldwide, Profit --Profit, Score Performance Progress.
Words: 880 Length: 3 Pages Topic: Business Paper #: 9161270

business, worldwide, profit --profit, score performance progress. While ways a business entity evaluated, common measures financial scope. All businesses understand poorly operations performing times, end pre-determined fiscal time period. AMD Financials AMD, short for Advanced Micro Devices, is notable as it is the single company to be able to withstand some competition to Intel's central processing units. Aside from this product however, AMD produces and sells a wide array of other

Compatibility of Microprocessors
Words: 2045 Length: 6 Pages Topic: Education - Computers Paper #: 17903821

AMD Processors AMD (Advanced Micro Devices, Inc.) is a Sunnyvale, California-based semiconductor manufacturer. The Company designs, manufactures and markets digital integrated circuits that are used in desktop and mobile PCs, workstations, servers, communications equipment and consumer electronics. Over the years, AMD has emerged as the only credible competitor to Intel Corp -- and has shipped more than 240 million PC processors worldwide since it was founded in 1969. This Report