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AMD Business Case

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  1. Introduction
  2. AMD's battle to enter the market and maintain a viable profitable position on the market
  3. AMD's main challenges
    1. AMD's performance in the 90s and 2000s in microprocessors for PC and servers
    2. What would it take for AMD to increase its market share in processors for desktops and notebooks?
    3. How to use Opteron success to leverage other segments?
  4. Impacts of Intel on AMD
    1. Would AMD maintain its winning position when Intel's had launched it new products?
    2. Would the customer centric approach be a source of advantage over Intel?
  5. Conclusion

A.M.D., Advanced Micro Devices, is an American company which has been competing in the microprocessor market since the early 70s.
These years heralded a new era during which computers slowly gained such relevance that soon no company could develop, get organized, gain market shares in an efficient and profitable way without implementing IT tools and processes to support their business.

Indeed the 70s were the years to stage an entry into this world and this is exactly what Jerry Sanders did when he founded AMD in 1969. He was among the other forerunners including the creators of Intel to enter a newly created environment where competition would soon prove to be extremely tough in terms of quality, reliability, price level and innovation expectations. Since then, real competition has arisen between significant global providers of innovative solutions for the computing market.

In a booming market, mainly led by IBM PCs (launched in the early 80s), the time was ripe for AMD to cement its place in the computing solutions market. Indeed, Intel which was the main supplier of microprocessor architecture was asked to license its patents to other suppliers. AMD was among the companies to manufacture processors via cross licensing agreements. IBM's novel and innovative breakthroughs in this domain provoked a scramble for increased R&D spending and spawned a fierce competition among other microprocessor companies in terms of prices and innovation. The battle for securing the top spot in the IT solutions domain became an ongoing affair considering the highly volatile market. The quest to launch new processors and new product ranges within shorter intervals was a key component of the success story.

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