University Case Study: AMD's Market Growth Strategies

This case study analysis examines Advanced Micro Devices (AMD)'s potential for market growth, particularly focusing on the AMD Fusion launch and its impact on the company's strategies. The analysis delves into AMD's historical market share, the introduction of the Opteron dual-core chips, and the acquisition of ATI technologies. It explores the challenges and opportunities faced by AMD, including the lawsuit with Intel and the introduction of new technologies like VISION. The case study also discusses the implications of the delayed Llano APU launch and the accelerated release of the Brazos APU, evaluating the sustainability of AMD's growth strategies. The analysis highlights the importance of technological advancements, meeting consumer demands, and differentiating in the market. Overall, the case study provides a comprehensive overview of AMD's market position and its efforts to sustain and grow its market share through strategic decisions and innovation.

Running head: CASE STUDY ANALYSIS: AMD
Case Study Analysis: AMD
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1CASE STUDY ANALYSIS: AMD
Can AMD ever grow the market?
Yes AMD can grow the market. AMD’s market growth began back in 2005 with the release
of its Opteron dual-core chips. With the introduction of that particular device, AMD took over from
Intel and became a leading name in the industry dealing with microprocessor technology.
Will this exceed 25% growth?
In 2002, after taking over from Intel, AMD’s market share witnessed a growth from below
15% to a 25.3% growth by 2006 in a global level. It was recorded to be AMD’s highest market share
till then. When Intel retorted back by establishing a stronghold in the graphics market, AMD saw
scopes of expansion in the graphics business. On July 2006, AMD purchased ATI technologies, which
ultimately expanded its business into graphics. Later, AMD filed a lawsuit against Intel accusing the
company of using its privileged market position and greater brand value to destroy AMD’s
relationship with other OEMs. In 2009, Intel paid AMD $1.25 billion to settle the lawsuit. On the
same day, AMD’s stock growth was reported to be 26%. Although there was a recorded decline in the
following years, the company went to make new innovations. The all new VISION technologywas
introduced to bring an upsell in retail. The company came together to support the Vision brand and
segregated its facilities into three different tiers with three different functionalities.
Can this be sustained?
This can certainly be sustained. The company has already undertaken various new projects to
stand up to its competitors and meet the demands of the market.In 2009, the company already
rebranded itself. It also realised the demand of more advanced graphics and hence amalgamated CPU
and GPU together. They further moved forward by introducing the APU concept as well as “Future of
Fashion” brand campaign. The brand mostly shifted their focus to launch and promote the Fusion
technology, which was almost considered as their trump card to establish their position in the market
once again.
If so HOW?
The position of the brand can be sustained mainly by embracing various technological
advancements and meeting the demand and requirements of the market and the consumers. Moreover,
it is essential that the brand while competing in the market, remains true to themselves, they should
also look out for various points of differentiation and make sure to not panic while undertaking all the
agendas. For example, as found in the market research study conducted by the company, consumers
that belong to metropolitan areas often require more focus on design or image of the computers. On
the other hand, majority of the consumers put up system specifications and basic functions of PCs as
their topmost criteria. Therefore, studying customer needs and meeting customer demands can be
considered as few ways the company can sustain themselves in the market.