Business Analysis: Case Analysis Of AMD Inc.

Identify and select a period in during which the industry you are currently operating in was performing really well OR rather badly.  Assess the various competitive forces which were influencing the industry’s profitability during that period  Eventually, scrutinize how these forces may have changed (in their nature or intensity) between the selected phase and the current scenario. In line with this, recommend the way ahead for your organization.
Introduction: (www.amd.com)
AMD Inc. is an US based company founded in the year 1969. It is a global semiconductor company with facilities around the world. AMD designs and integrate technology that powers millions of intelligent devices such as personal computers, game consoles and cloud servers
First being Intel which has 80% market share and the rest 20% by AMD. The production is very focused by both the companies into CPU manufacturing. This is one of the major hit back of AMD since it dint anticipate the fall of PC sales and instead only focused on CPU design and sales. Even though AMD came with new products with differentiation technology but lack of market share and dwindling PC sales did hurt AMD like never before. It has to find out way to come out from that typical follower mode to independent mode as compared to competition. Another point is the fact that Intel continued with the same market share with more speedier and efficient products which was like a catch up game for AMD. Intel has shielded itself from this ongoing PC sales slump by decreasing prices and increasing volume whereas AMD got into losses quarter after quarter. One more reason was Intel huge cash enabled it to spend more on R&D as compared to AMD. So the risk taken by Intel was aggressive as compared to AMD which has to take calculated ones. A price war engulfed between Intel and AMD and the result was Intel being winner due to the fact that it had deep pockets to keep AMD out of bay. SO in all the pressure from this slump along with competitor’s effect cut AMD revenue to almost half with losses mounting year on
The current challenges that were identified were:
• Weak PC market as discussed above
• Maximum channel inventory
• Market share losses to its competitors
• Investment not sufficiently focused So some of the portfolio decisions made were as below: Further Investment No Investment
Markets