Amd: a Customer-Centric Approach to Innovation – Case Analysis

AMD: A Customer-­‐Centric Approach to Innovation – Case Analysis Executive Summary After several years as an Intel’s follower, AMD had finally achieved the market recognition of a superior product for the Server and Workstation Segment and, as a consequence, is gaining market share at Intel’s expenses. Faced with the need of increasing volume, AMD considers essential to leverage the success obtained with Opteron to increase market share in other segments. The analysis of the data presented in the case indicates that there is still volume to make in the Server Segment and important issues to address in this same segment. We can also conclude that there is a high probability of failure in succeeding in other segments. For these reasons, AMD should focus in its key segment in the short-term and, only after consolidating its market position in this particular segment and establishing the value of AMD’s Brand, consider a major strategy to expand to other segments.

Market Summary Customer Analysis AMD is present in the B2B market with little interaction with the final consumer. Its costumer basis is composed by the OEMs, according to the following segmentation: Segment
Server And Workstations Desktop Higher-end Business Mid-range Business Lower-end Business Higher-end Business and Consumer Mid-range Business and consumer Lower-end consumer Higher-end Business and Consumer Consumer Lower-end Consumer

Key Customers
Dell, HP, IBM, Sun Dell, HP, Lenovo Fujitsu, Gateway Dell, HP, Lenovo, Fujitsu

Mobile

AMD has gained its space in the server and workstations segment but there are still some major problems to address in its customer’s purchase process in order to increase its market share: • There is a power relation between Intel and the Key Customers that influences the purchase process. Since Intel is the major supplier in all

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segments, the customers are