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AMD – Global Business Strategy
Submitted by:Abhishek Kumar Karan LalitMohit KakarNihar RoutraySatyam ShekharSumit Kamra
To grow AMD’s market share from 12.75% to 20% in India by 2012
Objective
◦ $44 billion dollar industry
◦ Dominated by USA, South Korea, Japan, Taiwan,
Singapore, and European Union
◦ Intel clearly has market dominance with 79% of the
market. Yet AMD with its mere 20% market share
continues to compete with it successfully.
◦ Emerging industry based on innovation
Microprocessor Industry
Where we stand currently in competition
Around 19% total PC market share in India.
Launching new campaigns in India to increase
awareness- “Future is me” targeted at youth.
Ready to launch new Sandy series CPU with
superior cost/performance ratio.
AMD’s worldwide market share in PC
microprocessor is 20.4%*
Current Position of AMD in India
*http://www.eetimes.com/electronics-news/4218438/IDC-cuts-PC-microprocessor-forecast
Alliance with Zenith Computers India
Proposed strategy
Zenith to use AMD processors in its Desktops, Notebooks
and Servers
Leverage on the Computer market of Zenith
Help each other in increasing each others’ market shares
Sales in 35 states and union territories
350+ Stocking Locations across India
50K Computer Market for Zenith by 2012
Advantages of alliance with Zenith
AMD Opportunities
Basic Education Needs are not met
Education
Entrepreneurial Spirit is high but needs help Sustaining
Commerce
INDIA
Needs to be addressed by use of technology
Health
Lack of Information Limits Societal Growth Opportunities
Social Participation
Growing Together
+
2011 2012
12.75%
20%
2010----20 K
AMD’s Processors
Sale
Sale of no of computers by
Zenith
2012----22K
2010----35 K
2012----50 K
Complementing each other
◦ Narrow the scope of the product
◦ Customer centric approach
◦ Customer superior value with power saving and
commitment to innovation
◦ Simplifies distribution
◦ Builds AMD brand
Implementation
Focus on competing where AMD is strong– the server market.
Efficient use of resources Scalable framework where one line of processors
can suffice for low to high end servers Targeting a specific market segment to focus on a
narrow range of products bringing higher operational efficiency
Use customer awareness and familiarity of server segment to penetrate other market segments
Implementation : Narrow the scope of the product
Implementation : Simplifying Distribution
◦ AMD to deal only with direct sales to computer
makers- Zenith Computers India
◦ Maintain a smaller sales force and concentrate on
profitable high-volume sales
◦ Promotion of AMD processors to work in tandem
with the distribution
Listen closely to what the customer wants
Take customer feedback which will provide insight into profitable innovations to pursue
Develop techniques to allow information to flow to and from customers
Implementation: Customer centric approach
Implementation: Show the Customer Superior
value Educate businesses about the benefits of using AMD
Targeting end users which indirectly pressurizes computer makers to offer products with AMD processors
Include the message in our power campaign that with AMD processors, companies can bolster their “green” image
Establish the belief that AMD processors are a better value because they offer more performance-per-watt than Intel processors at a lower price
Building the AMD Brand
Customer-centric approach helps customers decide what is important to them while we are there to provide expert guidance
AMD processors allow companies to achieve their “green” goals while still managing to increase performance
Customers will relate the AMD brand to superior value in the computer server market segment.
Leverage that brand to introduce desktop and mobile processors as well.