AMD VS INTEL:

COMPETITIVE CHALLENGES
TEAM MEMBERS:
MILAN MAHAPATRA
RAJASHREE PATTNAIK
SUBHASHREE PATTNAIK
SANSAYA NAYAK
PRATIK KHANDUAL
INTRODUCTION

• This case is basically on the competitive challenges between INTEL & AMD.
• The competitive challenges between the AMD & Intel took new dimension due to different
strategic initiatives implemented by both the companies.
• AMD attacked Intel with its server chips as well as acquire Array Technologies
Incorporated (ATI) .
• AMD was worried with Intel’s antitrust practices.
• AMD blamed Intel with its illegal discount program due to which AMD market share
dropped in Japan.
 AMD VS INTEL

• AMD achieved its biggest victory in 2006 when Dell, the largest PC
announced that it would start using AMD’s server chips.
• This announcement was a major setback for Intel as Dell had been its largest
customer in the market.
• HP the world’s second-largest PC manufacturer started using AMD chips in
their machines.
• Lenovo which is the third-largest manufacturer had already a strong AMD
customer in China, planned to use AMD chips in its business desktop PCs for
the United States.
• Intel’s market share declined from 74.3 percent in the first quarter of 2006 to
72.9 percent.
• As AMD captured a large market the workforce of Intel declined by 10%
STRATEGIES OF INTEL STRATEGIES OF AMD
 Intel strategy of producing ever more powerful  Eliminate Intel’s technical advantage.
processor.  Low cost/ cheaper price
 Intel started giving huge rebates to capture the  Highly innovative
market share.  Focus on delivering incredible products that
users in any segment can use it.
 SWOT ANALYSIS OF AMD
• Strength - High performance computing- AMD focuses at transfer user life with its high performance
graphic solutions.-AMD quality policy- The company has a Quality Policy that helps them to uphold the
products to the highest standards
• Weakness- Less market share - AMD has intense competition and due to which it sees a less scope to
capture huge market share- Less performance of computing segment -AMD sees a weak performance of
computing segment due to the arrival of various handheld devices and tablets.
• Opportunity- low cost CPU - AMD should product low-cost CPU for the emerging markets that will help
them with more value.- New consumer behavior trends- New trends in the consumer behavior can open up a
new market for AMD.
• Threats- Competitor - AMD has two competitors who are a major player in the market, Nvidia and Intel.-
Rising raw material - Rising raw material can be a huge threat to the profit of the AMD.
SWOT ANALYSIS OF INTEL

• Strength- Strong competitive presence- Intel is focused on innovating new technology to

increase its competitive advantage.. Broad product line- Intel provides end-to-end solutions that
address the needs of an ever-evolving data-centric community.
• Weakness- Limited market scope- Intel’s focus was more on PC and server chips and was not
willing to divert resources for smartphone development. As a result, they failed to break into
chips for smartphones, which makes them far behind competitors. Global chip shortage- Intel
announced the delay in the production of their 7-nanometer scale processors. This resulted in
some investors selling off their stocks.
• Opportunity- Dive into smartphones and tablets- Intel was already the leading PC company.
So if they will focus in launching their smartphones or tablets, it can be a opportunity for them.
• Threats- Dependency: Too much dependency on one product. If a competitor creates a better
version of this product Intel would be in a big trouble and would have no other product to lean
on.
CONCLUSION

• Both the company AMD and Intel are the two top chip and processor maker.
• They use their different strategic incentives to sustain in the market.
• Competitive challenges plays major role in growth of an organization.
THANK YOU