Subject category:
Strategy and General Management
Published by:
IBS Center for Management Research
Length: 16 pages
Data source: Published sources
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https://casecent.re/p/20816
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Abstract
The case discusses the competition between Intel and Advanced Micro Devices Inc (AMD), the number one and two players respectively, in the global semiconductor industry. The war between the two companies in terms of product superiority, technology transfer issues, pricing strategies, marketing campaigns have been explored in detail. The case provides information on AMD''s evolution over the years and traces the events that led to the two companies becoming bitter rivals from business partners. The launches of various microprocessor chips by the two companies, and their competitive moves have also been detailed. The case also briefly discusses the future prospects of the two companies, the industry as well as the consumers in the light of this intense competition. The case is developed to enable students to: (1) examine the nature and dynamics of the global semiconductor industry and the role of the leading players Intel and AMD; (2) learn about the strategies adopted by companies to survive in an industry that is primarily controlled by high technological obsolescence, economy of scale, price competition, and intense rivalry; (3) analyse how original equipment manufacturers and end users play an important role in determining the market share of a company functioning in the semiconductor industry; (4) understand the marketing strategies adopted by a challenger to garner market share in a highly competitive market with several players with good brands; and (5) evaluate the direction in which the industry and the two companies are heading and analyse the pros and cons of the competitive moves for all the parties concerned. The case is aimed at MBA/PGDBA students and is intended to be part of the strategy and general management curriculum. The teaching note does not contain an analysis of the case.
About
Abstract
The case discusses the competition between Intel and Advanced Micro Devices Inc (AMD), the number one and two players respectively, in the global semiconductor industry. The war between the two companies in terms of product superiority, technology transfer issues, pricing strategies, marketing campaigns have been explored in detail. The case provides information on AMD''s evolution over the years and traces the events that led to the two companies becoming bitter rivals from business partners. The launches of various microprocessor chips by the two companies, and their competitive moves have also been detailed. The case also briefly discusses the future prospects of the two companies, the industry as well as the consumers in the light of this intense competition. The case is developed to enable students to: (1) examine the nature and dynamics of the global semiconductor industry and the role of the leading players Intel and AMD; (2) learn about the strategies adopted by companies to survive in an industry that is primarily controlled by high technological obsolescence, economy of scale, price competition, and intense rivalry; (3) analyse how original equipment manufacturers and end users play an important role in determining the market share of a company functioning in the semiconductor industry; (4) understand the marketing strategies adopted by a challenger to garner market share in a highly competitive market with several players with good brands; and (5) evaluate the direction in which the industry and the two companies are heading and analyse the pros and cons of the competitive moves for all the parties concerned. The case is aimed at MBA/PGDBA students and is intended to be part of the strategy and general management curriculum. The teaching note does not contain an analysis of the case.

