Original Strategies for Advanced Micro Devices (AMD)

This report discusses the strategic positioning of Advanced Micro Devices (AMD) and explores future strategic options for the company. It also examines possible future strategic options for linking with two other businesses. The report provides insights into the internal and external factors affecting AMD's strategies and includes analyses such as SWOT, VRIO, PESTEL, and Porter's 5 forces. The conclusion highlights the available strategic options for AMD, including market penetration and product development.

Original strategies

Table of Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
1 Strategic positioning of the business........................................................................................3
2 future strategic option for firm.................................................................................................7
3 Possible future strategic options for linking with two other businesses...................................8
Conclusion.......................................................................................................................................9
REFERENCE................................................................................................................................10

Introduction
Operational strategies refers to the strategies used by company to reach their goals and
objectives within a business. it is only possible by developing the operational strategies, a
company can examine an implement efficient systems an effective system for using the
resources, personal and the work process.
This report will cover case study of Advanced Micro Devices, Inc. (AMD) Which is an
American multinational semiconductor company. This companies headquarter is in Santa Clara,
California. They are developing a product such as computer processors and related technologies
for both business and consumer markets.
Main body
1 Strategic positioning of the business
Factors within a business environment has huge impact on the strategies of AMD. both internal
and external business environmental factors influence on profitability and growth of the
company. It is necessary for leaders and managers of the AMD company to be aware of internal
external factors.
Internal factors
Internal factors refers to the anything within the company and under the control of the company
no matter what weather they are tangible or intangible for example – employees, companies
technology, policy, stakeholders etc. these factors are often being figured out are grouped into
the strength and weakness of the company.
SWOT analysis
Strength
 Product quality- AMD company is selling high quality computer chips within a market
that helps to make a computer super fast and provide better performance.
 Highly skilled workforce- Engineers who are working under this company are highly
skilful and they are well trained. AMD is investing huge resources In the training and
development of employees.

Weakness
 Less performance of computer segments- AMD Sees A weak performance of computing
segment because to the arrival of various hand held tablets and devices. now people are
using hand held devices instead of computer.
 Less market shares- AMD firm has Intense competition pressure and last year within the
market and you too which it sees a less scope for the company to expand their business.
Opportunities
 Innovation- Innovation in the computer chips can help AMD to take competitive
advantages within a market where they are operating their business.
 Lost of cost CPU- AMD should product low cost CPU for the emerging market that will
help them to create more value for themselves.
Threat
 Competition- There are many competition within a industry where AMD his operating
their business. some of their competitors are Intel and Nvidia.
 Rising raw material- Increasing prices of the raw material is creating a threat upon AMD.
it is necessary for the company to create a good relationship with their suppliers so they
can get some discount and they can add some value for the customers.
Vrio analysis
Valuable
Financial resources property AMD company are most valuable for them. it is because they can
use financial resources too create a new opportunity for their business and they can take
competitive advantages and create their operational management more effective.
Rare
Technology used by AMD is rare, it is the cause they use high level of technology within their
computer chips which make it different from the others. They make the computer more faster
with the help of chip.
Imitable

Employees of the AMD company are not costly too imitate, It is because other forms within the
market can also provide training and development and create skills within the employees. other
thing is that employees can leave the organisation anytime if they get a better offer option or pay.
Organisation
Distribution level of the AMD company is well organised, their tips are easily available within
the market. It is hard for the other companies to create distribution channel like them an they will
also have to Put higher financial resources.
External factors
External factors are the factors that are came outside of the business and that have huge impact
on the companies business and their strategies. it can have both negative and positive impact and
it is necessary for the companies leaders to be aware of those factors so they can save themselves
from the negative impact.
PESTEL analysis
Political factors
Political factors as huge impact on AMD company because they are operating their business in
all over the world, Every country has their own tax structure which affect the prices of AMD
product and services. on the other side it can have also positive impact because governments
support innovation and technology.
Economical factor
Economical factors such as inflation and deflation within the economy isimpacting on pricing of
raw material. The prices of Raw material is increasing day by day which is affecting the value of
final products sellby AMD.
Social factors
AMD is putting their effort toward customer satisfaction by adding the value for their customers.
company provide their products in lower cost to satisfy the needs and demands of the customers
and fulfil their social needs. on the other side they also give skill based training to their
employees so they can develop new skills and them self.

Technological
Technology is changing day by day, AMD is also a technology based company and it is
necessary for the company to be aware of needs and demands of the customers. customers
always demand for the upgrading technology so it makes necessary for AMD to innovate their
product continuously so they can take competitive advantages and show their presence.
Environmental
AMD is well known company who are having presence in all over the world. it makes necessary
for them to be give their contribution toward the environmental issues such as climate change,
deforestation etc. They can run on programmes where they can aware people about the issue of
climate change and how it is affecting our life.
Legal
AMD is following all the legal Policies made by the government and they are very familiar with
the government often country where they are operating their business. This company pay that
access on the time and they are having all the licence to run their business.
Porter’s 5 forces
New entrance
Force totake entry within the semiconductor industry is very high. It is because new business
required higher investment to set up their business and It is not possible for every business too
invest higher amount.
Bargaining power of suppliers
Companies within this industry buy their raw material from the many suppliers First off supply is
in the dominant position can decrease the margin and AMD can on the probability within the
market first start powerful supply within this industry have negotiating powers to extract higher
prices, suggests AMD.
Bargaining power o customers

Bargaining power have the customer is low because, they always go with the performance of the
product within this industry. if the products are highly quality and effective then they will buy In
higher cost as well.
Trade of substitute product and services
When a new product or services meet the similar customers needs in different ways, industry
profitability suffers. Almost all of the products within the industry where AMD is operating their
business are similar or substitute to each other. So it is very difficult to create any differences.
Competition within the market
Competition within a market is very high because there are numerous competitors already stab
lish their brand image. It makes hard for the new businesses to overcome from the competition
and show their presence. AMD is getting pressure from the companies such as intel, Nvidia etc.
2 future strategic option for firm
There are some future strategic option that can be used by AMD company to achieve future
opportunities for their business. it will help them to Grow their business and they will able to
take competitive advantages in future. Here are 2 future strategic option that can be used by this
AMD-
Product development
Product development can be best strategy for AMD that can be Useful for them to take
competitive advantages and They can create higher opportunities in future. They can identify the
needs and demand of the customer for the future technology and they can also take some
suggestion which can be used to develop the product and services. According to the information
collected by marketers of this company can provide information to the operational team and they
can develop the new products or innovate the existing products.
Business expansion
Another strategy can be used by AMD company is business expansion. there are many markets
who have potential for this company to grow their business in future and they can show their
present in the market. Business expansion be best future based strategy for the AMD company to
take competitive advantages. they can expand their business in some countries such as China,

Brazil, Indonesia etc. This countries are developing and have a great opportunity for the AMD
business
3 Possible future strategic options for linking with two other businesses
There are several options that companies can select for their future and these strategies
are discussed in form of Ansoff Matrix. Ansoff matrix outlines certain strategic options that are
based on market and product and their state in form of existing product and new product.
Strategic options are-
Market penetration
This is a strategy that is based on existing market and existing product of company.
Market penetration involves increasing sales and market share within industry and existing
market of the company. There are different strategies with help of which organisations can
increase its sales and market share. These strategies are variation in price, sales promotion and
extensive marketing. Market penetration is one of the most important and suitable strategy for
organisations that has strong brand presence and brand image in its market. In order to adopt this
strategy AMD requires increasing its marketing and promotional efforts. AMD has its products
for consumer market as well and in order to adopt this strategy AMD can also practice variation
in price. In this strategy AMD can reduce its products’ price in order to increase its sales. This
strategy have been adopted by Intel as its products and microprocessors are used in all big
companies’ computers including Apple, HP and Dell.
Market development
Market development is a strategy in which organisations develop new market. This
strategy involves new market but products of the company remain same that is utilised for new
marker segment. Market development requires business organisation to identify a similar market
and provide product. Market development strategy is suitable for organisation that provides
products that are not specific to particular market. For adopting this strategy AMD requires to
identify a new customer segment that is similar to its existing target market and then offer its
products in new market.
Product development

Product development strategy is one in which organisations develop new products to
offer in its existing market. In this strategy business organisations develop different products.
This strategy involves practices like innovation, and companies often utilise effective production
processes for this strategy. In order to adopt this strategy AMD is required to develop new
products and Software is one of the most suitable products that AMD can develop for purpose of
growth. Software is also offered by Qualcomm and because is one of the product that has high
possibility of success and this is why it is a suitable product that AMD can develop in its growth
strategy. This strategy have been adopted by Qualcomm and hence have high product offering
enabling company to attract customers from different market segments.
Diversification
Diversification strategy is one in which company develops new market as well as new
products and offering for the new market. Diversification is one of the strategy that involves
highest possible risk. Diversification is similar to starting a new business and element that
contribute in successful diversification strategy is brand name and brand image of the company.
This is like starting a new venture hence AMD can move into market like developing hardware
and offering them in a new market. This is because in diversification, it cannot develop a product
that is completely different from its existing products. Success in this will also be contributed by
existing brand name and image of AMD.
This suggests that AMD can adopt market penetration and product development
strategies that have been adopted by Intel and Qualcomm.
Conclusion
On the basis of above discussion it can be concluded that AMD has a strong strategic
position in which company has strengths through which it can utilise available opportunity in
external environment. VRIO analysis suggests that company has strong competitive capabilities.
Further analysis outlines that AMD has several strategic options available and discussion
regarding linking other firms’ strategy with AMD outlines that AMD can adopt market
penetration and product development strategies that have been adopted by Intel and Qualcomm.

REFERENCE
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