Amd Case Analysis

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AMD Case 1. How do you explain Intel’s market dominance? * Early mover: Early on, Intel won the microprocessor business when its’ processor became the standard unit for IBM’s PC. * Setting industry standards: They encouraged more rapid adoption of their next-generation processors through their design and manufacturing components around the next-generation processors. * Increase in new product launches: In order to increase product innovation, Intel invested heavily in R&D and changed to an overlapping product development cycle which led to large advances in performance and short product life cycles. * “Intel Inside”: marketing campaign to convince end-users to upgrade to the latest processing technology. The campaign focused on the “reliability” and “leading technology” of Intel’s microprocessors to differentiate their product from earlier-generation processors. * Contracts: Intel held a contract with Dell, who had the greatest market share percentage of mobile and desktop computers. * As we learned from the “Fading Memories” case, “the stronger the firm's technological competence, the higher the probability that it will generate unanticipated innovations that, if successful, will change the firm's mix of distinctive competence and product-market position.” 2. What were the implications to AMD of Intel’s introduction of the Itanium? What was AMD’s response? Implications to AMD of Intel’s introduction of the Itanium: * The new architecture of Itanium was different than the x86 family of processors * AMD didn’t have the license to produce the new design, and only Intel would have the rights to the new architecture, “EPIC.” * AMD didn’t have the resources to create a new architecture similar to Intel’s “EPIC.” * AMD would have to spend million of dollars to design and produce a similar

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