Nvidia Swot Analysis
Executive Summary
Nvidia is a corporation that produces graphics processing units (GPUs) and chipsets that are used in desktops and laptops as well as gaming platforms. Nvidia started out a as a small graphics company in the early nineties and has since grown to a multi-billion dollar revenue company. Nearly everyone who uses computers or video games uses Nvidia technology whether they are aware of it or not.
Nvidia holds a large share in the GPU market because of their high performing products. One of the main strengths of the company is their excellent research and development capabilities. Though this is good now, Nvidia relies on temporary technological advantages that could be improved upon by others.
A few problems that the company currently faces are lack of global diversification, low numbers of high return accounts and low product differentiation. A large portion of the companies revenues come only form Taiwan. There are also only two companies, HP and Asustek, who are responsible for large portions of their income.
There are a few options that Nvidia should consider. One option that would help in all three problem area would be to focus on the hand held device segment. South Korea is one of the fastest growing countries in terms of hand held device producers. Nvidia has already produced a “computer on a chip” that could be extremely successful in this expanding market. This move would allow them to not only move away from the Taiwanese market, it would allow them to potentially sign contracts with more large manufacturers. Product diversification would also be improved as the platform is not limited to one type of mobile device.
While making efforts in new areas such as hand held device units, Nvidia should also focus on keeping their large market shares in the desktop and mobile GPU markets as they are expected expand rapidly in the coming years.
External Environment Analysis
Demographic/ Sociocultural Trends
The demographic
Nvidia is a corporation that produces graphics processing units (GPUs) and chipsets that are used in desktops and laptops as well as gaming platforms. Nvidia started out a as a small graphics company in the early nineties and has since grown to a multi-billion dollar revenue company. Nearly everyone who uses computers or video games uses Nvidia technology whether they are aware of it or not.
Nvidia holds a large share in the GPU market because of their high performing products. One of the main strengths of the company is their excellent research and development capabilities. Though this is good now, Nvidia relies on temporary technological advantages that could be improved upon by others.
A few problems that the company currently faces are lack of global diversification, low numbers of high return accounts and low product differentiation. A large portion of the companies revenues come only form Taiwan. There are also only two companies, HP and Asustek, who are responsible for large portions of their income.
There are a few options that Nvidia should consider. One option that would help in all three problem area would be to focus on the hand held device segment. South Korea is one of the fastest growing countries in terms of hand held device producers. Nvidia has already produced a “computer on a chip” that could be extremely successful in this expanding market. This move would allow them to not only move away from the Taiwanese market, it would allow them to potentially sign contracts with more large manufacturers. Product diversification would also be improved as the platform is not limited to one type of mobile device.
While making efforts in new areas such as hand held device units, Nvidia should also focus on keeping their large market shares in the desktop and mobile GPU markets as they are expected expand rapidly in the coming years.
External Environment Analysis
Demographic/ Sociocultural Trends
The demographic
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