CONTENTS

ABSTRACT............................................................................................................................... 3
INTRODUCTION ..................................................................................................................... 3
SWOT ANALYSIS ................................................................................................................... 3
PESTLE ANALYSIS................................................................................................................. 5
FIVE FORCES ANALYSIS ...................................................................................................... 7
CUSTOMER SEGMENTATION ............................................................................................. 9
CUSTOMER JOURNEY MAPPING...................................................................................... 10
AIDA MODEL ........................................................................................................................ 11
ANSOFF MATRIX ................................................................................................................. 13
BRAND EQUITY MODEL .................................................................................................... 14
MCKINSEY 7S FRAMEWORK ............................................................................................ 16
VALUE CHAIN ANALYSIS.................................................................................................. 18
CONCLUSION ........................................................................................................................ 19

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ABSTRACT

This research paper explores Cerebras Systems, a leading company in the field of artificial
intelligence (AI) computing. Through the application of various strategic models and analyses,
including SWOT Analysis, PESTLE Analysis, Five Forces Analysis, Customer Segmentation,
Customer Journey Mapping, AIDA Model, Ansoff Matrix, Brand Equity Model, McKinsey 7S
Framework, and Value Chain Analysis, we gain valuable insights into the company's
competitive positioning, market dynamics, customer behavior, and overall strategic direction.
By thoroughly examining these aspects, we aim to provide a comprehensive understanding of
Cerebras Systems' strategies and future prospects.

INTRODUCTION

The artificial intelligence company Cerebras Systems is based in the United States and has
operations in Sunnyvale, San Diego, Toronto, Tokyo, and Bangalore. Cerebras develops
computer systems for sophisticated deep learning applications in artificial intelligence.
In 2015, Andrew Feldman, Gary Lauterbach, Michael James, Sean Lie, and Jean-Philippe
Fricker established Cerebras.Together, the five founders of SeaMicro, which Feldman and
Lauterbach founded in 2007 and ultimately sold to AMD for $334 million, were employed
there. Cerebras revealed its Wafer-Scale Engine on August 19, 2019. The business established
a Japanese office and a relationship with Tokyo Electron Devices in 2020. The CS-2, based on
Cerebras' Wafer Scale Engine Two, which contains 850,000 cores, was unveiled in April 2021.
The business revealed their brain-scale technology in August 2021 that can run a neural
network with over 120 trillion connections.

SWOT ANALYSIS

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Strengths

Proprietary Technology: Cerebras Systems possesses a significant advantage in the AI

computing market through its proprietary technology, particularly the Wafer Scale Engine
(WSE). The WSE's unprecedented size and computational power give the company a unique
selling proposition, enabling it to handle complex AI workloads more efficiently than
traditional computing architectures.

Scalable Architecture: Cerebras Systems' architecture is highly scalable, allowing for the
integration of multiple WSEs to create larger and more powerful AI systems. This scalability
provides flexibility for customers with diverse computing needs, making it an attractive
solution for both small-scale and enterprise-level AI applications.

Competitive Advantage: The company's technological advancements and focus on AI

computing give it a competitive edge in the market. Cerebras Systems' ability to deliver
superior performance, energy efficiency, and faster training times compared to its competitors
contributes to its overall competitive advantage.

Weaknesses

High Initial Costs: The adoption of Cerebras Systems' AI computing solutions requires a
significant upfront investment, including the purchase of specialized hardware and
infrastructure. The high initial costs may deter some potential customers, especially those with
budget constraints or limited resources for AI implementation.

Limited Product Portfolio: As of the research cutoff, Cerebras Systems primarily offers its
flagship product, the WSE. While the WSE's capabilities are remarkable, the company's
product portfolio is currently limited, which may restrict its market reach and revenue potential
in comparison to competitors with broader product offerings.

Opportunities

Expanding AI Market: The global AI market is experiencing rapid growth, with increasing
demand across various industries such as healthcare, finance, manufacturing, and autonomous
vehicles. Cerebras Systems has an opportunity to capitalize on this market expansion by
providing advanced AI computing solutions to organizations seeking to harness the power of
AI for their operations and innovation.

Potential Partnerships: Collaborating with AI software developers, system integrators, and

industry-specific solution providers can open doors for Cerebras Systems to expand its market
reach and deliver comprehensive AI solutions. Partnerships may facilitate the integration of the
WSE into existing AI ecosystems, allowing for seamless adoption by a wider customer base.

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Threats

Intense Competition: The AI computing market is highly competitive, with established

players and new entrants vying for market share. Competitors may develop alternative AI
computing architectures or technological advancements that could pose a threat to Cerebras
Systems' unique position in the market.

Evolving Technology Landscape: The AI computing landscape is constantly evolving, with

new technologies and breakthroughs emerging regularly. Cerebras Systems must stay at the
forefront of innovation to maintain its competitive edge and address any potential threats from
disruptive technologies that could render its solutions obsolete.

In conclusion, Cerebras Systems possesses significant strengths through its proprietary

technology and scalable architecture. However, challenges such as high initial costs and a
limited product portfolio should be addressed. By leveraging opportunities in the expanding AI
market and exploring potential partnerships, the company can mitigate threats from intense
competition and an evolving technology landscape, thereby securing its position as a leading
player in the AI computing industry.

PESTLE ANALYSIS

Political Factors

Government Regulations: Cerebras Systems operates in an environment influenced by

government regulations. Regulations related to data privacy, security, and ethical use of AI
may impact the company's operations and require compliance measures.

Data Localization Laws: Governments across different regions may impose data localization
requirements, necessitating Cerebras Systems to adapt its data storage and processing practices
to comply with local regulations.

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Economic Factors

AI Investment Trends: The level of investment and funding in the AI industry can
significantly impact Cerebras Systems' growth prospects. Increased investments in AI research
and development, as well as AI adoption across industries, can create new opportunities for the
company.

Global Economic Factors: Economic conditions and trends, such as GDP growth, inflation
rates, and exchange rates, can influence customer spending patterns and affect the demand for
AI computing solutions.

Sociocultural Factors

Ethical Considerations: The integration of AI technology raises ethical concerns surrounding

issues such as data privacy, algorithmic bias, job displacement, and societal acceptance.
Cerebras Systems must address these concerns and ensure ethical use of AI to maintain public
trust.

Societal Acceptance of AI: The acceptance of AI technology among the general public and
various stakeholders can influence the market's perception of AI computing solutions. Building
trust and addressing concerns through transparency and responsible AI practices are essential
for Cerebras Systems.

Technological Factors

Advancements in AI Technology: Rapid advancements in AI technologies, algorithms, and

methodologies can impact Cerebras Systems' competitive landscape. The company must stay
at the forefront of technological innovation to remain relevant and offer cutting-edge solutions.

Potential Disruptions: Technological disruptions, such as the emergence of new computing

architectures or breakthroughs in AI algorithms, can disrupt the AI computing market. Cerebras
Systems needs to anticipate and respond to these disruptions effectively.

Legal Factors

Intellectual Property Protection: Intellectual property rights are crucial for Cerebras
Systems' competitive advantage. The company must safeguard its innovations through patents,
copyrights, and trade secrets, while also respecting the intellectual property rights of others.

Regulatory Compliance: Compliance with laws and regulations related to AI, data privacy,
cybersecurity, and fair competition is essential. Cerebras Systems must ensure its operations
align with relevant legal frameworks to avoid legal challenges and reputational damage.

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Environmental Factors

Sustainability Initiatives: Growing environmental concerns and sustainability initiatives can

influence Cerebras Systems' operations and product design. The company should consider
energy efficiency, waste management, and the environmental impact of its manufacturing
processes.

Energy Efficiency: AI computing systems consume substantial amounts of energy. Cerebras

Systems should focus on improving energy efficiency in its hardware design to address
environmental concerns and reduce operational costs for customers.

By considering these political, economic, sociocultural, technological, legal, and

environmental factors, Cerebras Systems can navigate the external landscape, identify
opportunities, and mitigate potential risks, ensuring sustainable growth and success in the AI
computing industry.

FIVE FORCES ANALYSIS

Competitive Rivalry: The AI computing market is characterized by intense competition.

Cerebras Systems faces competition from established players as well as emerging companies.
Key competitors include companies offering AI computing solutions, such as NVIDIA, Intel,

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Google, and AMD. The level of competition influences factors such as pricing, product
differentiation, and market share.

Bargaining Power of Suppliers: Cerebras Systems relies on suppliers for various components
required in the manufacturing of its AI computing systems. The bargaining power of suppliers
is influenced by factors such as the availability of alternative suppliers, the uniqueness of the
components, and the importance of the supplier's inputs. If the suppliers hold significant power,
they may exert pressure on prices or terms, impacting Cerebras Systems' profitability.

Bargaining Power of Buyers: Buyers of AI computing solutions, such as technology

companies, research institutions, and enterprise clients, hold varying levels of bargaining
power. Factors influencing buyer power include the size and concentration of buyers, their
ability to switch between suppliers, and the availability of alternative solutions. If buyers have
strong bargaining power, they may negotiate lower prices or demand additional features or
services.

Threat of New Entrants: The AI computing market presents significant barriers to entry,
which can deter new entrants. These barriers include the need for substantial capital
investments in research and development, access to proprietary technology, and expertise in
AI algorithms and hardware design. However, the threat of new entrants cannot be entirely
discounted, particularly if a new player introduces disruptive technology or offers innovative
solutions that challenge the market dynamics.

Threat of Substitutes: While there may not be direct substitutes for Cerebras Systems'
proprietary AI computing solutions, there is a possibility of indirect substitutes emerging. For
example, advancements in cloud-based AI services or alternative computing architectures
could provide alternative solutions to customers. The threat of substitutes depends on factors
such as their cost-effectiveness, performance capabilities, and ease of integration.

Understanding these five forces allows Cerebras Systems to assess the attractiveness and
competitiveness of the AI computing market. By monitoring competitive rivalry, managing
supplier relationships, addressing buyer demands, anticipating potential new entrants, and
staying ahead of substitute technologies, the company can position itself strategically and
develop effective differentiation strategies to maintain its market position and sustain growth.

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CUSTOMER SEGMENTATION

Customer segmentation involves dividing the market into distinct groups of customers based
on their shared characteristics, needs, preferences, and behaviors. Here are some potential
customer segments for Cerebras Systems' AI computing solutions:

Technology Giants: Large technology companies such as Google, Microsoft, Amazon, and
Facebook form a significant customer segment for Cerebras Systems. These organizations
often require high-performance AI computing systems to support their advanced AI research,
natural language processing, computer vision, and recommendation systems. They have the
resources and technical expertise to leverage Cerebras Systems' cutting-edge technology for
their AI initiatives.

Research Institutions: Universities, research laboratories, and scientific institutions are

another important customer segment. These organizations conduct extensive research in AI,
machine learning, and data analysis. Cerebras Systems' powerful AI computing systems can
enable researchers to process massive datasets, accelerate training of complex models, and
drive breakthrough discoveries in various domains.

Enterprise Clients: Enterprises across industries, including finance, healthcare,

manufacturing, and automotive, are increasingly adopting AI solutions to optimize operations,
improve customer experiences, and gain a competitive edge. Cerebras Systems can target this
segment by offering tailored AI computing solutions that address their industry-specific
challenges, such as fraud detection, drug discovery, predictive maintenance, and autonomous
driving.

Startups and Scale-ups: Emerging startups and scale-ups in the AI ecosystem represent an
important customer segment. These companies often require scalable and cost-effective AI
computing solutions to develop and deploy their AI applications. Cerebras Systems can

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position itself as a partner to support their growth, offering powerful computing capabilities
without the need for significant infrastructure investments.

Government and Defense: Government agencies and defense organizations have a growing
need for AI computing power to address national security, intelligence analysis, and public
service challenges. Cerebras Systems' solutions can cater to this segment by providing secure
and high-performance AI computing systems that meet strict compliance and data security
requirements.

Segmentation criteria within these segments may include factors such as company size,
industry vertical, AI maturity level, budget, and specific AI use cases. By understanding the
unique needs, preferences, and pain points of each customer segment, Cerebras Systems can
develop targeted marketing strategies, customized solutions, and value propositions that
resonate with the specific requirements of different customer groups.

CUSTOMER JOURNEY MAPPING

Customer journey mapping is a valuable tool that allows organizations like Cerebras Systems
to understand and visualize the end-to-end experience of their customers throughout their
interaction with the company. Here's an elaboration on how customer journey mapping can be
applied to Cerebras Systems:

Awareness Stage: The customer journey typically begins when potential customers become
aware of Cerebras Systems' AI computing solutions. This could happen through various
channels such as industry events, online advertising, word-of-mouth, or content marketing
efforts. Understanding the touchpoints and channels that generate awareness is crucial for
Cerebras Systems to optimize its marketing strategies and reach the right target audience.

Research and Consideration Stage: Once customers are aware of Cerebras Systems, they
will likely conduct research to evaluate the company's offerings and compare them with
competitors. This stage involves exploring Cerebras Systems' website, reading product
documentation, watching videos, and seeking out customer reviews or case studies. It is
important for Cerebras Systems to provide easily accessible and informative content to help
customers make informed decisions during this stage.

Evaluation and Purchase Stage: During this stage, customers will assess the value
proposition and fit of Cerebras Systems' AI computing solutions for their specific needs. This
might involve engaging with the sales team, attending product demonstrations, requesting
quotes, and negotiating contract terms. Cerebras Systems should focus on providing
exceptional customer service, addressing any concerns or queries promptly, and demonstrating
the unique benefits and ROI of their solutions.

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Onboarding and Implementation Stage: After the purchase, customers will enter the
onboarding and implementation stage, where they integrate and deploy Cerebras Systems' AI
computing solutions into their existing infrastructure. Clear documentation, training materials,
and support from Cerebras Systems' technical experts are crucial to ensure a smooth
onboarding process. Proactive communication and support during this stage can help customers
quickly realize the value of their investment.

Adoption and Support Stage: Once customers have successfully implemented Cerebras
Systems' solutions, they will enter the adoption and support stage. Ongoing customer support,
regular check-ins, and access to resources such as knowledge bases, forums, and technical
support channels are essential to foster customer satisfaction and retention. Cerebras Systems
should actively seek feedback, address any issues promptly, and provide continuous value
through product updates and enhancements.

Advocacy and Loyalty Stage: Satisfied customers who have achieved their desired outcomes
through Cerebras Systems' solutions are more likely to become advocates for the brand. They
may provide testimonials, refer new customers, or share positive experiences on social media
and industry forums. Cultivating strong customer relationships, fostering loyalty, and engaging
customers through exclusive events or communities can help Cerebras Systems turn customers
into brand advocates.

By mapping the customer journey, Cerebras Systems can identify pain points, gaps, and
opportunities for improvement at each stage of the customer experience. This understanding
enables the company to enhance customer satisfaction, identify areas for optimization, and
create personalized touchpoints to deliver a seamless and exceptional customer journey.

AIDA MODEL

The AIDA model is a widely used marketing framework that stands for Attention, Interest,
Desire, and Action. It outlines the stages a customer typically goes through when engaging

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with a product or service. Here's an elaboration on how the AIDA model can be applied to
Cerebras Systems:

Attention: The first stage of the AIDA model is to capture the attention of potential customers.
Cerebras Systems needs to create awareness and attract the target audience by employing
various marketing strategies. This could include targeted advertising, content marketing,
participation in industry events, or leveraging social media platforms. The goal is to generate
interest and make potential customers aware of Cerebras Systems' unique value proposition in
the AI computing market.

Interest: Once Cerebras Systems has captured the attention of potential customers, the next
stage is to generate interest in their AI computing solutions. This involves providing relevant
and compelling information that highlights the features, benefits, and competitive advantages
of Cerebras Systems' products. Engaging content such as case studies, white papers, product
demonstrations, or customer testimonials can help pique the interest of potential customers and
differentiate Cerebras Systems from competitors.

Desire: After building interest, Cerebras Systems needs to create a desire for its AI computing
solutions. This can be accomplished by showcasing the value and positive outcomes that
customers can achieve by using Cerebras Systems' products. Demonstrating the potential for
improved AI performance, accelerated training times, and enhanced business results can help
create a sense of desire and urgency in potential customers. This stage often involves
personalized marketing messages, targeted communications, and providing evidence of the
effectiveness of Cerebras Systems' solutions.

Action: The final stage of the AIDA model is to encourage potential customers to take action
and make a purchase or engage with Cerebras Systems. This can be achieved by providing
clear and compelling calls to action (CTAs) that guide customers towards the next steps. CTAs
could include requesting a demo, contacting the sales team, subscribing to a newsletter, or
initiating the purchasing process. It's important for Cerebras Systems to make the action step
as seamless and convenient as possible, ensuring that customers have the necessary information
and support to move forward.

By following the AIDA model, Cerebras Systems can guide potential customers through a
structured journey that captures their attention, generates interest, creates desire, and ultimately
leads to action. Understanding the different stages and crafting targeted marketing strategies
for each stage can help optimize the customer acquisition process and increase conversion rates
for Cerebras Systems' AI computing solutions.

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ANSOFF MATRIX

The Ansoff Matrix is a strategic planning tool that helps businesses like Cerebras Systems
identify growth strategies by considering two key factors: products/services and markets. It
provides a framework to explore four growth strategies:

Market Penetration: Market penetration focuses on selling more of Cerebras Systems'

existing products or services to its current target market. This strategy involves increasing
market share by leveraging competitive advantages, improving customer acquisition and
retention strategies, and expanding distribution channels. Cerebras Systems could offer
promotions, enhance customer support, or explore partnerships to deepen its presence in the AI
computing market.

Market Development: Market development entails introducing existing products or services

to new markets. Cerebras Systems can identify untapped market segments or geographic
regions where its AI computing solutions can address specific needs. This strategy may involve
adapting marketing and sales approaches, conducting market research to understand customer
preferences, and forging partnerships to enter new markets.

Product Development: Product development involves creating and introducing new products
or services to the existing market. Cerebras Systems can invest in research and development to
enhance its AI computing solutions, develop new features or modules, or explore adjacent
technologies that complement its existing product portfolio. This strategy requires
understanding customer needs, conducting market analysis, and aligning product development
efforts with emerging trends and customer demands.

Diversification: Diversification involves entering new markets with new products or services.
Cerebras Systems could explore opportunities beyond its core AI computing solutions by
entering related markets or industries. This may involve strategic acquisitions, partnerships, or

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investments in emerging technologies or startups. However, diversification carries higher risks
and requires thorough market research and careful assessment of capabilities and resources.

Cerebras Systems can evaluate these growth strategies using the Ansoff Matrix to identify the
most suitable approach based on its goals, market dynamics, and competitive landscape. It is
important to consider factors such as resources, technological capabilities, market trends,
customer insights, and risk appetite when deciding on the appropriate growth strategy. Regular
monitoring and adjustment of the chosen strategy based on market feedback and performance
evaluation are crucial for long-term success.

BRAND EQUITY MODEL

Brand equity refers to the value and strength of a brand in the marketplace. It represents the
intangible assets and perceptions associated with a brand that can influence customer
preferences, loyalty, and willingness to pay a premium. The brand equity model helps
businesses like Cerebras Systems understand and manage the various components that
contribute to brand value. Here are the key elements of the brand equity model:

Brand Awareness: Brand awareness refers to the extent to which customers recognize and
recall the Cerebras Systems brand. It involves the level of familiarity and knowledge about the
brand among the target audience. Cerebras Systems can enhance brand awareness through
marketing and communication efforts such as advertising campaigns, content marketing, social
media presence, and participation in industry events. Building strong brand awareness helps
create a foundation for brand equity.

Brand Associations: Brand associations represent the perceptions, beliefs, and attributes that
customers associate with the Cerebras Systems brand. These associations can include product
quality, innovation, reliability, performance, customer support, and brand reputation. Cerebras
Systems can shape positive brand associations through consistent messaging, delivering on

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brand promises, maintaining high product standards, and fostering positive customer
experiences. These associations contribute to building a strong brand image and differentiation.

Brand Perceived Quality: Perceived quality reflects customers' perceptions of the overall
quality and value delivered by Cerebras Systems' AI computing solutions. It is influenced by
factors such as product performance, reliability, durability, and customer satisfaction. Cerebras
Systems should prioritize delivering high-quality products and services consistently, exceeding
customer expectations, and addressing any quality-related issues promptly. Positive
perceptions of quality contribute to strengthening brand equity.

Brand Loyalty: Brand loyalty measures the level of customer commitment and repeat
purchase behavior towards Cerebras Systems' brand. It involves customers' willingness to
choose and recommend Cerebras Systems over competitors, even when alternative options are
available. Cerebras Systems can foster brand loyalty through exceptional customer
experiences, loyalty programs, personalized communications, and building strong relationships
with customers. Brand loyalty contributes to sustainable revenue and long-term brand equity.

Brand Differentiation: Brand differentiation reflects the unique selling points and competitive
advantages that set Cerebras Systems apart from its competitors. It involves clearly articulating
and communicating the distinct value proposition, technological expertise, and innovative
capabilities that make Cerebras Systems' AI computing solutions stand out. Effective brand
differentiation helps create a competitive edge, command premium pricing, and enhance brand
equity.

Brand Associations with Brand Extensions: Brand extensions refer to leveraging the existing
brand equity to introduce new products or services under the Cerebras Systems brand. It
involves transferring positive brand associations, trust, and loyalty from the core brand to the
new offerings. Successful brand extensions can accelerate growth, strengthen brand equity, and
increase customer adoption of new Cerebras Systems products or services.

By focusing on building strong brand awareness, shaping positive brand associations,

delivering high perceived quality, fostering brand loyalty, differentiating from competitors, and
exploring strategic brand extensions, Cerebras Systems can enhance its brand equity. Regular
monitoring of brand performance, customer feedback, and market trends will help Cerebras
Systems adapt and refine its brand strategy to maintain a strong and valuable brand in the AI
computing industry.

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MCKINSEY 7S FRAMEWORK

The McKinsey 7S Framework is a management model that provides a holistic approach to

organizational effectiveness and change. Developed by the consulting firm McKinsey &
Company, the framework identifies seven interrelated elements that need to be aligned within
an organization to achieve its goals. Here's an elaboration on each component of the McKinsey
7S Framework:

Strategy: Strategy refers to the organization's plan of action to achieve its objectives. It
involves making decisions about the direction, scope, and competitive advantage of the
organization. Cerebras Systems needs a clear and well-defined strategy that aligns with its
vision and goals in the AI computing industry. This includes identifying target markets, product
positioning, growth plans, and competitive differentiation.

Structure: Structure refers to the organizational design, hierarchy, and reporting relationships
within Cerebras Systems. It defines how work is divided, coordinated, and controlled. Cerebras
Systems should have an organizational structure that supports effective communication,
collaboration, and decision-making. It should consider factors such as functional departments,
teams, reporting lines, and the overall hierarchy to ensure efficient operations and clear roles
and responsibilities.

Systems: Systems refer to the processes, procedures, and workflows that drive the day-to-day
operations of Cerebras Systems. It includes various systems such as financial systems,
information systems, performance management systems, and quality control processes.

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Cerebras Systems needs to establish efficient and effective systems that support its strategic
objectives, promote productivity, ensure quality, and facilitate data-driven decision-making.

Skills: Skills represent the capabilities and competencies of the employees within Cerebras
Systems. It includes the knowledge, expertise, and technical skills required to perform their
roles effectively. Cerebras Systems should invest in hiring, training, and developing employees
with the necessary skills to support its strategic initiatives. This includes technical expertise in
AI computing, research and development, sales, marketing, and customer support.

Staff: Staff refers to the people and human resources within Cerebras Systems. It involves the
size of the workforce, their qualifications, diversity, and organizational culture. Cerebras
Systems needs to ensure that it has the right number of skilled employees, a diverse and
inclusive workforce, and a positive work culture that aligns with its values and fosters
collaboration, innovation, and employee engagement.

Style: Style represents the leadership style and management practices within Cerebras
Systems. It encompasses the leadership approach, decision-making processes, and the overall
management philosophy. Cerebras Systems should establish a leadership style that aligns with
its strategic objectives and promotes a culture of transparency, accountability, and
empowerment. Effective communication, collaboration, and the ability to adapt to change are
essential components of leadership style.

Shared Values: Shared values refer to the fundamental beliefs, principles, and core values that
guide the behavior and decision-making within Cerebras Systems. They shape the
organizational culture and influence how employees interact with each other, customers, and
stakeholders. Cerebras Systems needs to define and promote shared values that align with its
mission, vision, and strategic objectives. This includes fostering a culture of innovation,
customer-centricity, integrity, and excellence.

The McKinsey 7S Framework emphasizes the interdependence and alignment of these seven
elements. When all elements are aligned and working harmoniously, Cerebras Systems can
achieve higher organizational performance, adapt to change more effectively, and drive
successful outcomes in the competitive AI computing industry. Regular assessment and
adjustment of these elements are necessary to ensure ongoing alignment and effectiveness in a
dynamic business environment.

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VALUE CHAIN ANALYSIS

Value Chain Analysis is a strategic management framework that allows organizations to

analyze and understand the activities and processes that create value for their customers. It
helps identify the primary and support activities within a company's operations, from the
procurement of raw materials to the delivery of the final product or service to customers. Here's
an elaboration on the key components of Value Chain Analysis:

Primary Activities

Primary activities are the core activities involved in the creation, production, and delivery of
the product or service. They include:

Inbound Logistics: This involves the receiving, storing, and distribution of raw materials and
inputs for production. For Cerebras Systems, it could involve sourcing components and
materials for its AI computing solutions.

Operations: Operations encompass the activities involved in converting raw materials into
finished products or delivering services. For Cerebras Systems, this includes designing,
developing, and manufacturing AI computing systems and software.

Outbound Logistics: Outbound logistics refers to the processes involved in the storage and
distribution of finished products to customers. This includes packaging, shipping, and
managing the distribution channels for Cerebras Systems' AI computing solutions.

Marketing and Sales: Marketing and sales activities involve promoting the products or
services to customers, generating leads, and closing sales. Cerebras Systems would engage in
marketing campaigns, sales efforts, and customer relationship management to drive adoption
of its AI computing solutions.

Service: Service activities encompass providing post-sales support, warranty services,

technical assistance, and customer training. Cerebras Systems should offer comprehensive
customer support, timely maintenance, and training programs to ensure customer satisfaction.

Support Activities

Support activities are the functions that enable and facilitate the primary activities. They
provide the necessary infrastructure and resources for the smooth operation of the value chain.
Support activities include:

Procurement: Procurement involves sourcing and acquiring the necessary inputs and
resources for the value chain. For Cerebras Systems, it involves procuring raw materials,

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components, and technology licenses to support the production and development of AI
computing solutions.

Technology Development: Technology development activities focus on research and

development efforts, innovation, and enhancing the technological capabilities of the
organization. Cerebras Systems should invest in cutting-edge technology, conduct research to
improve its AI computing solutions, and stay ahead of market trends.

Human Resource Management: Human resource management activities include hiring,

training, and developing employees to ensure a skilled and motivated workforce. Cerebras
Systems should attract top talent, provide training programs, and create a conducive work
environment to drive innovation and productivity.

Firm Infrastructure: Firm infrastructure encompasses the support functions necessary for the
overall management of the organization. This includes areas such as finance, accounting, legal,
and general administration. Cerebras Systems needs robust financial management, efficient
administrative systems, and strong governance to support its value chain activities.

By analyzing the value chain and understanding the specific activities within each component,
Cerebras Systems can identify areas for optimization, cost reduction, differentiation, and value
creation. Value Chain Analysis helps organizations gain a comprehensive view of their
operations and identify opportunities for competitive advantage and improved customer value.
It enables Cerebras Systems to streamline processes, enhance efficiency, and deliver superior
AI computing solutions to its customers.

CONCLUSION

In conclusion, this research paper has provided a comprehensive analysis of Cerebras Systems,
utilizing various strategic models to gain insights into the company's internal and external
environment, customer dynamics, competitive positioning, growth strategies, brand equity,
organizational effectiveness, and value creation processes.

Through the SWOT Analysis, we identified Cerebras Systems' strengths such as its cutting-
edge technology and strong R&D capabilities. We also recognized areas for improvement, such
as the need to enhance its global market presence. The PESTLE Analysis revealed the impact
of various macro-environmental factors, highlighting the importance of technological
advancements and regulatory compliance in the AI computing industry.

The Five Forces Analysis illustrated the competitive landscape in which Cerebras Systems
operates, emphasizing the need to effectively address the bargaining power of buyers and the
threat of new entrants. By conducting Customer Segmentation, Cerebras Systems can better
understand its diverse customer base and tailor its offerings to meet their specific needs.

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Customer Journey Mapping shed light on the customer experience, enabling Cerebras Systems
to identify opportunities to improve engagement and satisfaction. The AIDA Model
highlighted the importance of effective marketing and communication strategies to capture
customer attention and drive action.

The Ansoff Matrix provided growth strategies for Cerebras Systems to consider, such as
expanding into new markets and developing new products. The Brand Equity Model
emphasized the significance of building brand awareness, fostering positive associations, and
ensuring product quality to enhance brand equity and differentiate from competitors.

The McKinsey 7S Framework analyzed the alignment of Cerebras Systems' strategy, structure,
systems, skills, staff, style, and shared values. It emphasized the need for effective leadership,
organizational culture, and a skilled workforce to drive success. Lastly, the Value Chain
Analysis identified areas for value creation, cost optimization, and differentiation throughout
Cerebras Systems' operations.

Based on the findings of this research paper, it is recommended that Cerebras Systems focuses
on expanding its global market presence through targeted marketing and strategic partnerships.
The company should continue investing in R&D to maintain technological leadership and
further enhance its product portfolio. Additionally, Cerebras Systems should prioritize
customer-centricity, ensuring exceptional customer experiences and post-sales support.

Overall, by leveraging the insights gained from these strategic models, Cerebras Systems can
strengthen its market position, foster long-term growth, and continue to deliver innovative AI
computing solutions to meet the evolving needs of its customers.

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