amd vs. intel case study

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Page 1: AMD vs. INTEL case study
Page 2: AMD vs. INTEL case study

AMD vs. INTEL Competitive Challenges

GROUP MEMBER :PATEL AKASH : PRAJAPATI VISHAL :PATEL ASHISH :

CASE STUDY

Submitted to: Prof. Rekha

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MICRO PROCESSOR:

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INTRODUCTION • History of AMD :

• Founded on May 1, 1969 by Jerry Sanders and seven friends, AMD's first product was a 4-bit shift register.

• AMD is an American multinational semiconductor company based in Sunnyvale, California, that develops computer processors and related technologies for commercial and consumer markets.

• AMD is the second-largest global supplier of microprocessors based on the x86 architecture and also one of the largest supplier of graphics processing units. It also owns 8.6% of Spansion, a supplier of non-volatile flash memory.

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• In 2003, AMD debuted the Opteron for servers and high-end workstations, the first 64-bit x86-compatible CPU on the market.

• AMD announced a merger with ATI Technologies on July 24, 2006.

• In October 2008, AMD announced plans to spin off manufacturing operations in the form of a multibillion-dollar joint venture with Advanced Technology Investment (ATI) Co., an investment company formed by the government of Abu Dhabi.

• In 2009, AMD ranked eighth among semiconductor manufacturers in terms of revenue.

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FEATURE OF PRODUCT

• All AMD-designed chips have been noted for their cool-running, innovative architectures.

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PRODUCT OF AMD:

1) Microprocessors,2) Motherboard chipsets, 3) Embedded processors 4) Graphics processors for servers, 5) Workstations and personal computers, 6) Processor technologies for handheld devices, 7) Digital television, 8) Automobiles, 9) Game consoles, and other embedded

systems applications.

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History of Intel :• Intel was founded in 1968 by Gordon E.

Moore and Robert Noyce.• Intel headquarters in Santa Clara, USA

• ORIGIN OF THE NAME:– They used the name NM Electronics for almost a year,

before deciding to call their company Integrated Electronics or Intel for short. However, Intel was already trademarked by a hotel chain, so they had to first buy the rights for the name

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• By 1970 the company became highly competitive DRAM, SRAM AND ROM market.

• In 1981 intel entered into a strategic alliance with IBM in which IBM WILL USE intel’s microprocessor for it desktops models

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• Acquisition of McAfee - Performance, Power and now Protection

• On 19 August 2010, Intel announced that it planned to purchase McAfee, a manufacturer of computer security technology.

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Intel's competitors OTHER TOP SEMICONDUCTOR COMPANIES

AMD, Samsung, Texas Instruments, Toshiba and STMicroelectronics.

COMPETITORS IN PC CHIP SETS:- AMD, VIA Technologies, SiS, and Nvidia.

INTEL'S COMPETITORS IN NETWORKING INCLUDE FREESCALE Infineon, Broadcom, Marvell Technology Group and AMCC

COMPETITORS IN FLASH MEMORY Spansion, Samsung, Qimonda, Toshiba, STMicroelectronics, Hynix.

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Intel Products

1) Microprocessors2) Flash memory3) Motherboard 4) Chipsets5) Network Interface Card6) Bluetooth 7) Chipsets

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Intel company has provide facilities• Argentina • China, • Costa Rica, • Malaysia, • Mexico, • Israel, • Ireland, • India, • Philippines, • Poland, • Russia, and • Vietnam internationally.

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COMPARISION OF BOTH THE COMPANY :-

User Requirement AMD INTEL

Power Consumption Less efficient than Intel More efficient than AMD

Price Range Lower Higher

Cooling Factor Heats up faster Runs cooler for a longer duration

Performance Speed Not very Fast, compared to Intel Faster than AMD

Gaming and MultimediaBetter multimedia output due to

faster clockingNot very good for gaming

Performance : Price High:Low High:High

3D Gaming YES(Athlon)NO(Pentium 4)

YES(Quadcore and Core 2 Duo)

Graphics YES(Athlon)NO(Pentium 4)

YES(Quadcore and Core 2 Duo)

MP3 and Video Encoding faster SOME WHAT

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CHIPMAKER MARKET SHARE

INTEL 83%

AMD 15%

OTHER CHIPMAKERS (CYRIX, IDT etc.)

2%

AMD INTEL

Revenue US $ 5.4 billion (2009) US $ 35.127 billion (2009)

Operating income US $ 664 million (2009) US $ 5.711 billion (2009)

Net income US $ 293 million (2009) US $ 4.369 billion (2009)

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Future Forecast

• Based on Moore’s theory in the next five years we shall see Intel manufacturing an 8.3Ghz processor and AMD a 7.2Ghz processor based on current processor speeds.

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QUESTIONS1) Strategies of INTEL & AMD for getting

leadership in chip industry?• INTEL:

Intel's strategy of producing ever-more-powerful processors and obsolescing their predecessors stumbled, leaving an opportunity for rapid gains by competitors

• AMD: a) Devalue the Intel brand, b) Eliminate Intel's technical advantage, and c) Be the OEM vendor of choice.

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2) What lessons should amd learn from intel?High performing computerMore investment in R&DInnovation in products Strengthen distribution channel.High and well trained staff.Differentiating strategies

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3)What makes Intel leader? Or why Intel in first position in market?Highly Productive Plants( Produce Max. Units A Day)Multiple RoleHigh Performing And Reliable Computer ChipsWorking With Customer To Share Vision Of CompanyMarket Share Of CustomersGood Brand ValuesHigh Expertise EngineersSpecific Focus E Group(hospital Record Sand Tablets)Customer Awarness

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Conclusions

• Intel is clearly the market leader in the manufacture of microprocessors based on their revenue forecasts and market share dominance. Intel has 6 times the number of employees the AMD.

• Comparisons of High End Processors proves that Intel is better processors like for like with AMD.

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RANK IN 2009

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Thank you

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Any question