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 trends for Nvidia are not centered on one age structure or gender due to their moderate product differentiation. Nvidia creates innovative industry changing products for computing, mobile devices and consumer electronics. Nvidia technology that runs in gaming consoles target young men between the ages of 13-34, but women gamers are steadily on the rise. In fact “One of the common statistics often cited by video game industry trade groups is that the average age of a gamer nowadays is around 30 years old. What you might not know, however, is that among game players between the ages of 25 and 34, women far outnumber men, according to a new study by the Consumer Electronics Association (as reported in The New York Times).”  Nvidia’s computer and communication products target all ages and cater to everyone who uses a computer or mobile device for personal or business use. Their communications processor products target the more affluent community, especially young men and women entrepreneurs. 
Nvidia’s products not only target all age groups and socioeconomic statuses, the company is also conscious of its social responsibility is responsible for manufacturing environmental friendly products. “Our singular vision is to build one of the most influential and admired technology companies in the world- a company that is a source of pride for our customers, suppliers, partners, shareholders, and employees. Nvidia’s social responsibility is integral to this vision.”  NVIDIA is committed to promoting environmental stewardship and providing a safe and healthy environment for its employees and communities. Their goal is to continue to drive innovation and conserve natural resources while minimizing the environmental impact from their operations. 
Political/ Legal Segments
NVIDIA’s legal trends consist of current and past legal proceedings involving antitrust violations, landlord lawsuits, stock option granting practices and trustee lawsuits. “In December 2006...
Cited:  Caulfield, Brian. "Shoot To Kill." Forbes.com. 13 Dec. 2007. 20 Apr. 2009 .
 Chen, Max. "A Turning Point For Taiwan Economy, ETF?." EFT Trends 10 Mar. 2009 Web. 22 Apr. 2009. .
 "Computer graphics chip shipments dive in Q4 ’08." Jon Peddie Research Press Releases. 22 Apr. 2009.
 Davis, Chirs. "NVIDIA Ion platform: Atom plus GeForce 9400M for full-HD netbooks." Slash Gear. 22 Apr. 2009.
 "Gamers Catch Their Breath as Xbox 360 and Xbox Live Reinvent Next-Generation Gaming”
 Gardner, W. David. "Samsung Overtakes U.S. Market Share Lead From Motorola.” Information Week 07 Nov 2008 Web. 22 Apr. 2009
 Gilmore, Grainne. "Analysis: What falling GDP means." Times Online. 12 Nov 2008 Web. 22 Apr. 2009. .
 LaPedus, Mark. "Nvidia takes charge for bad chips, but who is to blame?." EETimes. 22Apr. 2009. .
 NVIDIA."Corporate Milestones." Nvidia Corporation. 20 Apr. 2009 .
 NVIDIA. 2009. Nvidia Coporation. 22 Apr. 2009 .
 "Nvidia Corporation." Datamonitor (2007):1-10.Griffin. Washington State University, Pullman. 15 Apr. 2009. Keyword: Nvidia.
 “Nvidia Corporation." Datamonitor (2008):1-10.Griffin. Washington State University, Pullman. 15 Apr. 2009. Keyword: Nvidia.
 "UNIT SALES OF HARDWARE (SINCE APRIL 2006)."Http://www.scei.co.jp.19 Apr. 2009. .
 Videocard Benchmarks. 22 Apr. 2009. PassMark Software. 22 Apr. 2009 .
 Williams, Elisa. "Crying Wolf." Forbes.com. 14 Apr. 2002. Forbes.com. 19 Apr. 2009 .
Please join StudyMode to read the full document