AMD: A customer-centric approach to innovation
- What do you make of AMD's Power Campaign? Is the value proposition it highlights compelling to end users?
- How concerned should AMD be about Intel's imminent new product plans? Will they hamper AMD's growth plans?
- Will AMD's customer centric approach be a source of advantage over Intel?
- Will it yield commercially viable innovations that are dramatically different than those Intel will develop?
AMD was founded in 19691 by Jerry Sanders, formerly of Fairchild Semiconductor. The company started to focus on microprocessors in the mid 1970s. It designed and manufactured microprocessors for the computing, communications, and consumer electronics market. The company employed 9,000 employees2. In 2005, revenues were $ 5.8 billion, a 17% increase over 20043. Traditionally, AMD had been a distant follower to Intel, which had a dominant position in microprocessors for the server and personal computer markets. However, Intel's dominance was eroding as Opteron gained acceptance and AMD focused on ?customer-centric innovation?. Intel was founded in 19684 by Gordon Moore, and Robert Noyce also formerly of Fairchild Semiconductor.
AMD always offered low-priced clones of Intel's products, with high performance. What strategies use the brand to compete with Intel? In order to respond to this question we will see in a first part what would it take for AMD to see a significant increase in its market share processors used in corporate desktops and notebooks, then we will evaluate AMD's ?power campaign?; in a third part the threats of intel's imminent new product plan; the new customer centric approach in another part, and its potential application into viable innovation.
[...] AMD NEED A GOOD ADVERTISING CAMPAIGN, TO INNOVATE ON THEIR PRODUCT LINES, TO MAKE MORE SALES, AND WITH BENEFITS INVEST IN RESEARCH AND DEVELOPMENT. AMD HAVE TO KEEP IN MIND THAT THEY WORKED IN A VOLATILE INDUSTRY (TECHNOLOGY), AND THERE WILL ALWAYS BE UPS AND DOWNS. Bibliography 1 E. Ofek, L. Barley, January 2007, a customer-centric approach to innovation? published in Harvard Business School Review 2 Spansion , Inc. IPO in December 2005 Company 10-Ks 3 Dean Mc Carron, Mercury Research 4 Intel information on the [...]
[...] THE ?CUSTOMER CENTRIC APPROACH? TO INNOVATION IS A METAPHOR WHICH SYMBOLIZES THE EXISTING PARTNERSHIP BETWEEN AMD AND ITS CUSTOMERS. THE AIM OF THIS STRATEGY IS TO LISTEN TO CUSTOMERS' NEEDS AND FEEDBACKS (WHAT THEY REALLY WANT), AND THEN TO ADAPT THE OFFER INTO VIABLE INNOVATIONS. THUS, THEY BETTER KNOW THEIR TARGET, AND THEY KNOW WHAT THEY SHOULD DO OR SHOULDN'T DO. AMD listen carefully to things it can improve. The company uses empathy yourself in their shoes. Get beyond, faster, cheaper, better?. [...]
[...] The ?Power Campaign? aim has to be redefined about the impact of the power and the cooling of server in this segment by insisting on the main advantage for a company which is saving power consumption and cooling costs. The power campaign does not focus enough on products and performance. The campaign is selling the brand image, but AMD have already a high awareness, the brand should focus more on product line. They should communicate on the performance of the product and the energy consumption. [...]