Case Study: Amd vs. Intel
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 about Intel’s antitrust practice and blamed Intel with its illegal discount program due to which AMD’s PC market share dropped in Japan.
I ) The Hypercompetitive Environment of the Chip Industry
Hypercompetition describes the realities of the competitive landscape for semiconductor producers. In this industry, the notion of market stability is replaced by an assumption of inherent instability and change. Hypercompetition results from the dynamics of constant strategic maneuvering among innovative, global combatants. Rapidly escalating competition results from price-quality positioning, the frantic race to beat competitors to the market with innovative products and technology to establish a first mover advantage and competition to protect the position.
Repositioning, competing successfully, overcoming competitors’ barriers, and overcoming competitors’ market-based moves are four major competitive strategies in hypercompetitive conditions. In chip industry the more relevant strategy especially in the case of AMD and Intel are over coming competitors’ barriers and overcoming competitors’ market-based moves. The major issues for these two are shortening life cycles, undermining strongholds, and countering deep packet
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 about Intel’s antitrust practice and blamed Intel with its illegal discount program due to which AMD’s PC market share dropped in Japan.
I ) The Hypercompetitive Environment of the Chip Industry
Hypercompetition describes the realities of the competitive landscape for semiconductor producers. In this industry, the notion of market stability is replaced by an assumption of inherent instability and change. Hypercompetition results from the dynamics of constant strategic maneuvering among innovative, global combatants. Rapidly escalating competition results from price-quality positioning, the frantic race to beat competitors to the market with innovative products and technology to establish a first mover advantage and competition to protect the position.
Repositioning, competing successfully, overcoming competitors’ barriers, and overcoming competitors’ market-based moves are four major competitive strategies in hypercompetitive conditions. In chip industry the more relevant strategy especially in the case of AMD and Intel are over coming competitors’ barriers and overcoming competitors’ market-based moves. The major issues for these two are shortening life cycles, undermining strongholds, and countering deep packet