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By Aditya Devireddy (011) Gaurav Bhargava (004) Susovan

1. The document compares Intel and AMD in terms of their vision, strategic groups, Porter's 5 forces analysis, key driving forces, success factors, horizontal and vertical integration, geographical presence, revenues, profits, EPS, and provides strategic recommendations. 2. It finds that Intel has significantly higher revenues and profits than AMD in the past 5 years, with AMD reporting losses in some years. Intel also has a higher EPS. 3. The strategic recommendations include AMD focusing on server, desktop and notebook chips including GPUs, Intel becoming the low cost leader, and both companies following their goals and increasing attention to the internet in penetrating lower-priced markets.

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103 views

By Aditya Devireddy (011) Gaurav Bhargava (004) Susovan

1. The document compares Intel and AMD in terms of their vision, strategic groups, Porter's 5 forces analysis, key driving forces, success factors, horizontal and vertical integration, geographical presence, revenues, profits, EPS, and provides strategic recommendations. 2. It finds that Intel has significantly higher revenues and profits than AMD in the past 5 years, with AMD reporting losses in some years. Intel also has a higher EPS. 3. The strategic recommendations include AMD focusing on server, desktop and notebook chips including GPUs, Intel becoming the low cost leader, and both companies following their goals and increasing attention to the internet in penetrating lower-priced markets.

Uploaded by

pruthvi99
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 20

VS

By
Aditya Devireddy[011]
Gaurav Bhargava[004]
Susovan[016]
VISION

 AtIntel, we constantly • A world where the


push the boundaries of amazing power of AMD
innovation in order to technology improves
make people's lives the quality of people's
more exciting, more lives.
fulfilling, and easier to
manage.
2
STRATEGIC GROUP

3
PORTERS 5 FORCES

Potential Entrants
Buyers
Suppliers
Potential Substitutes
Current Competitors

4
PORTERS 5 FORCES CONTD..
 Potential Entrants  Suppliers
 Innovative Technology, Low  Less Bargaining Power
price as prohibitive entry  Great deal of buying power
barriers
 Capital Expenditures high  Potential Substitutes
 Economies of Scale  No Substitutes for CPU

 Buyers  Rivalry
 DELL,HP  Price Competitive
 Intel
almost enjoyed a  Low product cycles
monopoly  Severe competition
 Exclusive Contracts

5
THE COMPLEMENTS..
 Complements
 Growing demand for thinner and lighter notebooks
 High performance computing
 Operating Systems

6
KEY DRIVING FORCES
 Moore’s Law
 Dual or Multiple Microprocessors

 Mobile

 Continued growth of computer gaming

 Tech Savy Population

7
KEY SUCCESS FACTORS
 Diverse Customer base
 Good Brand Loyalty

 Shift from Clock speed to multi threading, high


reliability, low power consumption

8
HORIZONTAL INTEGRATION
 AMD Products
 Microprocessors – Phenom, Athlon, Sempron
 Motherboard chipsets – CrossFire, ATI Radeon
Xpress, Integrated Chipsets
 Embedded processors – Opteron, Turion, Geode
 Graphics processors – ATI Radeon

•Intel Products
 Motherboard chipsets
 Network cards and Ics
 Flash memory
 Graphic chips
9
 Embedded processors
HORIZONTAL SCOPE
 AMD:
 Network ICs
 Increase scope of Graphics processors

 Intel:
 Integrated Chipsets

10
VERTICAL INTEGRATION
 Since both Intel and AMD occupy similar place in the
supply chain, Vertical scope exits as follows:
 Siliconbased chemicals
 Global procurement
 Global Delivery

11
GEOGRAPHICAL PRESENCE

AMD 12

Intel
GEOGRAPHICAL SCOPE
 AMD
 Africa
 Middle East
 North-Eastern Europe
 Northern Asia

 Intel
 Wider presence in Asia
 Africa
 Wider presence in South Africa

13
PORTER’S GENERIC STRATEGIES

Competitive Advantage
Lower Cost Differentiation

Cost
Broad Differentiation
Target Leadership
Competitive
Scope
Narrow Focus
Target

14
STRATEGIC POSITIONING

Needs Based Positioning


•Storage
•Consumer
Variety Based Positioning Electronics
•Workstations
•Servers
•RAM
•PC
•Microprocessors

15
REVENUES( IN MILLION USD)
 Revenues for Intel are higher than AMD for the last 5 years. The difference
is almost 6 times is FY2009
45000

40000 38800 38300 37600


35400 35100
35000

30000

25000
Intel
20000 AMD

15000

10000
5848 5627 5858 5808 5403
5000

0
2005 2006 2007 2008 2009

16
NET PROFITS(IN MILLION USD)
 The net profits after tax for Intel are higher as compared to AMD.
The Profits were negative for AMD for three years from 2006 to
2008.

800

600

400
Intel
AMD
200

0
200 200 200 200 200

17
EPS(IN USD)
 The EPS for AMD was negative in 2007 and 2008 due to negative operating
income. The EPS is also higher for Intel in comparison to AMD. EPS for
Intel was $0.77 and was $ 0.45 for AMD in 2009.
2
1.4
1.18
0.86 0.92 0.77
1
0.37 0.45

0
200 200
-0.28 200 200 200
-1
Intel
-2 AMD

-3

-4
-4.03
-5
-5.09
-6

18
STRATEGIC RECOMMENDATIONS
 AMD should now focus strictly on chips for servers,
desktops and notebooks–including GPUs–though the
total market has grown to $46.5 billion by 2009
 Intel should take the necessary steps become the low
cost leader
 Both companies need to follow their goals and even step
up their attention to the internet when penetrating the
lower-priced market
 The companies should become the OEM’s vendor of
choice
19
THANK YOU

20

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