4 P's, STPD, SWOT Analysis

1. ADVANCED MICRO DEVICES
Ashish Nashikkar
July 2014

2. ABOUT AMD
 American multinational semiconductor
company based
in Sunnyvale, California, United
States.
 Develops Computer Processor and
related products for business and
consumer markets.
 AMD's main products
include microprocessors, motherboard
chipsets, embedded processors
and graphics processor for servers,
workstations and personal computers,
and embedded systems applications.

3. ABOUT AMD CONTINUED
• Founded – May 1, 1969
• Listed – NYSE
• Founders – Jerry Sanders, Edwin Turney and some
additional co founders.
• Employees – 10671 (2013)
• Revenue - $5.30 billion (2013)
• Operating Income - $103 billion (2013)
• Net Income - $83 million (2013)
• Total Equity - $544 million (2013)
• Jerry Sander and Edwin Turney were former executives
from Fairchild Semiconductor.

4. 4 P’S

5. PRODUCT

8. PLACE
• Computer Shops
• Online E- commerce – Flipkart, Snapdeal,
Ebay, Amazon etc.
• Wholesaler – Lamington, Nehru Place, Vashi
Plaza etc.

9. PRICE
• Competitive Pricing in the lower end CPU.
• Competitive Pricing in the GPU against
Nvidia.
• Penetration Pricing in the upper end processor
to compete against Intel’s high end processor.
• Some price difference in different GPU
manufacturers of AMD graphics.
• Duopoly market in both CPU and GPU market

10. FALSE ECONOMY PROCESSOR
EXCEPT FOR APU
• Run hot
• More TDP
• Consumes more electricity in the long run
• False Cores
• Start ageing early
• Costlier PSU required
• Costly Motherboard and After market coolers for overclocking
• Personal Choice Intel
– Runs cooler
– Consumes less electricity
– Beats down AMD in benchmarks
– Does not age early, system runs for aegis
– Per core performance much greater, hyperthreading technology beats
down AMD logical cores

11. APU’S VALUE FOR MONEY
• No need of discrete graphics
• Crossfire of discrete GPU with APU beats
down Intel + Discrete GPU at lower cost
• Can be over clocked to high frequency
• 12 Core APU for lesser price and better
gaming performance.
• Good for people tight on budget.

12. PROMOTION
• Less spending on promotion
• Getting fans on Facebook and giveaway for week or month
• Fans does most of the promotion work
• Niche Campaigns – Local gaming tournament sponsored by AMD at
gaming zones, AMD posters at gaming zones, sponsor gaming
tournament in college fests
• World Cyber Gaming Sponsor
• Radeon Series visible at start of many games
• AMD has been a sponsor of the Scuderia Ferrari Marlboro F1 Team.
• AMD has been a sponsor of the Discovery Channel Pro Cycling
Team.
• AMD is the jersey sponsor of the USL expansion team Austin Aztex
FC.

13. STPD

14. SEGMENTATION
• Budget Segment
• Benefit segment
• Adoption Diffusion:-
– Early Adopters – FX series (Fusion, Bobcat,
Vishera, Bulldozer and Hondo)
– Early Majority – FX , Opteron and APU’s (Llano)
– Late Majority – Phenom and Athlon 64
– Laggards – Sempron ,Duron and Athlon
• Not for Innovators

15. TARGET
• Laptop and Desktop users
• Console and PC Gamers
• Home users
• Mainly youths
• Budget PC builders
• Overclockers who want to set world records
• Game Zones

16. POSITIONING
• Reliable and optimum performance oriented
microprocessors and GPUs
• Innovation
• Gamers processor and GPU
• Visual Enhanced Pleasure using 6 displays

17. DIFFERENTITATION
• Crossfire
• Higher clock rates
• More cores
• AMD Quad FX platform (allows to connect
two processors using HyperTransport)

18. SWOT
ANALYSIS

19. STRENGHTS
• Strong brand in Microprocessor and PC market
• Strong focus on Research and
development capabilities
• AMD has a global presence
• AMD operates in GPU (graphical processing
unit) and Microprocessor market with only
single competitor in each market, Nvidia and
Intel respectively.

20. WEAKNESS
• Weak performance of computing segment due
to advent of tablets, handhelds
• Lack of penetration into mobile market
• Intense competition means limited scope for
capturing huge market share

21. OPPORTUNITIES
• Innovation for mobile platforms and tablets
• New product and services expansions
• Presence in virtualization space

22. THREATS
• Competition from Intel and Nvidia
• Environmental regulations
• Declining PC shipment

23. Insights

25. Acquisitions
• ATI Technologies- $4.3 billion, July 26,2004.
Genesis of APU.
• Intel Ally SeaMicro- Unmatched cloud-centric
server building blocks. Entry into server
business. Intel on the defensive line.

26. Partnerships
• AMD and Alpha Processor Inc. developed
HyperTransport.
• AMD and IBM gain silicon on insulator (SOI)
manufacturing, 90mn die manufacturing.
• Loosely partnered with end users company
such as HP, Asus, Compaq, Acer, and Dell.

27. Bibliography
o http://www.zdnet.com/amd-acquires-intel-partner-
seamicro-3040095176/
o http://www.amd.com/en-gb
o http://www.forbes.com/sites/briancaulfield/2
012/02/22/amd-talked-with-nvidia-about-acquisition-
before-grabbing-ati/
o http://valid.canardpc.com/records.php
o http://en.wikipedia.org/wiki/Advanced_Micro
_Devices

28. THANK YOU