Case Study: Amd vs. Intel

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CASE STUDY 1 AMD vs. INTEL Group 4 Fariba Ma’soomeh Hadi Ahmad Salman 21. Mar. 2010 DBA / MMU AMD vs. INTEL Competitive Challenges The competitive challenges between the top two-chip maker Intel and AMD took a new dimension due to different strategic initiatives taken by both the companies. It is obviously clear that in a condition like competition between these two giants the strategies taken by each can emphasize on the other side of market as it influence the success of the company and the competitive environment of the industry. Clarifying the Hyper competition environment of AMD and Intel or chip industry brings clear understanding of competitive advantage and taking good strategies. The reality that AMD is worried…show more content…
As it is clear for now one of the most important issues in this case is pricing. It is clear that Intel will lower its price to gain more market share as it did that about the Japan market. Although that AMD believe that it has some antitrust issues in the business but the reality is that Intel has increased its market share and dominated the Japan market. Anyway another issue that predict by analyzing customer and competitor behavior is related to the technology diffusion and disruptive technology. It seems that they have trend to the mobility and wireless. So their next strategy will be focusing in this issue. However we can discover more behavior by using the Porter’s framework for analyzing competitors. This framework is based on the four key aspects of the competitor that are: * Competitor’s Objectives * Competitor’s Assumptions * Competitor’s Strategy * Competitor’s Capabilities IV) Innovation Apparently one of the most important movers of the business today is Innovation. Any firm or company that invests in the creativity and innovation undoubtedly gains a better market share in compare with other competitors. So it is necessary to talk about this issue as it related to the subject. * Internal Innovation Prior research into innovation showed that, given the same research and development investment, new ventures outperform large firms about three times in terms of number of patents generated, number of new products and
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