Amd Future Strategy
• Critique of recommended strategy and implementation:
• What could go wrong: o Projects are not accurate and market does not shift accordingly o Company does not have the capital (money or employee) to implement new strategy o Synergies with ARM are not recognized o • Critical assumptions that we are making o That we will be able to partner with ARM and be the producer of actual chips o Blue Ocean strategy – become a major player in the server market ( cloud computing) o Assuming the shift from traditional in house storage centres to outsourced cloud computing o That we will be able to gain access to BRIC countries ( regulations, operations and govt will allow us to ) o PC market is fully saturated and the mobile/cloud computing is in the emerging and growth cycle
• How will the firms competitors React (The recommended strategy you present for your firm should explicitly address how your firm’s competitors will react to your proposed strategy) o Competitors in the BRIC countries will most likely threaten the profit sanctuaries, (ie are manufacturing of chips, use campaigns and adds against AMD chips, etc.) o Start pricing wars, contain AMD through shaping competive conditions ( non domestic firms have to pay more, have to bribe to gian acess to market, pay more taxes, minimum charging price for products etc) o Try a hostile takeover o Slide 19 is a great chart onjuly 22 day. For how competitors are going to act out.
• How the key stakeholders will react o Love it because currently they already know they are in a saturated market and have no strategy that is giving them any sort of competitive advantage, therefore stakeholders will view this as a redquuen effect and enable is to move ahead of INTEL and ensure the same thing does not happend to the the mobile and cloud markets as it did to the PC and laptop market (ie Intel just dominated and took over the market segment and basically forced AMD to the bottom)
• Would Rumelt be convinced
• What could go wrong: o Projects are not accurate and market does not shift accordingly o Company does not have the capital (money or employee) to implement new strategy o Synergies with ARM are not recognized o • Critical assumptions that we are making o That we will be able to partner with ARM and be the producer of actual chips o Blue Ocean strategy – become a major player in the server market ( cloud computing) o Assuming the shift from traditional in house storage centres to outsourced cloud computing o That we will be able to gain access to BRIC countries ( regulations, operations and govt will allow us to ) o PC market is fully saturated and the mobile/cloud computing is in the emerging and growth cycle
• How will the firms competitors React (The recommended strategy you present for your firm should explicitly address how your firm’s competitors will react to your proposed strategy) o Competitors in the BRIC countries will most likely threaten the profit sanctuaries, (ie are manufacturing of chips, use campaigns and adds against AMD chips, etc.) o Start pricing wars, contain AMD through shaping competive conditions ( non domestic firms have to pay more, have to bribe to gian acess to market, pay more taxes, minimum charging price for products etc) o Try a hostile takeover o Slide 19 is a great chart onjuly 22 day. For how competitors are going to act out.
• How the key stakeholders will react o Love it because currently they already know they are in a saturated market and have no strategy that is giving them any sort of competitive advantage, therefore stakeholders will view this as a redquuen effect and enable is to move ahead of INTEL and ensure the same thing does not happend to the the mobile and cloud markets as it did to the PC and laptop market (ie Intel just dominated and took over the market segment and basically forced AMD to the bottom)
• Would Rumelt be convinced