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.