BUSINESS COMMUNICATION &

ANALYSIS

A COMPARITIVE STUDY OF INTEL COMPANY

WITH AMD

Submitted By

Saket Nandan

FMG C- 23

231127

Table of ContentsINTRODUCTION.....................................................................................................................................3

SWOT ANALYSIS OF INTEL.....................................................................................................................4

STRENGTHS........................................................................................................................................4

WEAKNESSES.....................................................................................................................................4

OPPURTUNITIES.................................................................................................................................5

THREATS............................................................................................................................................5

SWOT ANALYSIS OF AMD......................................................................................................................6

STRENGTHS........................................................................................................................................6

WEAKNESSES.....................................................................................................................................6

OPPURTUNITIES.................................................................................................................................6

THREATS............................................................................................................................................6

INTEL vs AMD : Analysis.........................................................................................................................7

Organizational environment..............................................................................................................7

Contrasting both brands....................................................................................................................7

Intel low end of the spectrum...........................................................................................................7

AMD Low End of the Spectrum..........................................................................................................8

Market Share.....................................................................................................................................8

Future Forecast..................................................................................................................................8

CONCLUSION.........................................................................................................................................9

REFERENCES........................................................................................................................................10

INTRODUCTIONIntel Corporation is an American multinational semiconductor chip maker corporation headquartered in Santa Clara, California. Intel is one of the World’s largest and highest valued semiconductor chip makers, based on revenue. It is the inventor of the x86 series of microprocessors, the processors found in most personal computers. Intel Corporation, founded on July 18, 1968, is a portmanteau of Integrated Electronics. Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing. Founded by semiconductor pioneers Robert Noyce and Gordon Moore and widely associated with the executive leadership and vision of Andrew Grove, Intel combines advanced chip design capability with a leading-edge manufacturing capability. Though Intel was originally known primarily to engineers and technologists, its "Intel Inside" advertising campaign of the 1990s made it a household name, along with its Pentium processors.

Intel’s biggest competitor is Advanced Micro Devices (AMD) which is

an American multinational semiconductor company based in Sunnyvale, California, United States, that develops computer processors and related technologies for business and consumer markets. While initially it manufactured its own processors, the company became fabless after Global Foundries was spun off in 2009. AMD's main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications. AMD is the second-largest global supplier of microprocessors based on the x86 architecture and also one of the largest suppliers of graphics processing units. It also owns 8.6% of Spansion, a supplier of non-volatile flash memory.

AMD is the only significant rival to Intel in the central processor (CPU) market for (x86 based) personal computers. Since acquiring ATI in 2006, AMD and its competitor Nvidia have dominated the discrete graphics processor unit (GPU) market.

SWOT ANALYSIS OF INTEL

Intel is the first brand, which has launched first commercial microprocessor chip and it, happened in the year 1971. With the introduction of Personal Computers, which is famously known as PC, it shifted its focus towards it. Intel has invested a very large amount of money in new microprocessor designs because computer industry took a rapid boost in the year 1990s. Intel largest competitor is AMD and it took the advantage of market after 2000 because at that time the demand for Intel chips were falling down.

STRENGTHS

• Intel has the largest market share all over the world and has a very strong brand value attached to it.

• Intel was the first company, which came up with the idea of microprocessor, and it has continued that legacy by making advanced changes in it with time.

• If we look at Intel from the prospect of revenue, we will see that it is the largest number global technology corporation.

• Most of the computers have x86 microprocessors and almost every brand which makes computer is using Intel products in it.

• It may have AMD has its competitor but Intel gains the market share of 80% which seems more or less like a monopoly for Intel Corporation.

• Earlier in 1990s, it became the world’s largest and reliable supplier to the PC business.

• Intel Corporation has loyal customers all over the world and in many parts of the world; people are not familiar with any other brand apart from Intel.

• It has invested a very heavy amount in its Research and Development department, which has played a very crucial role in the success of its brand value.

WEAKNESSES

• Sometimes Intel comes up with a very technical strategy in response to its competitors, which is not easily understood, by most of the people.

• Intel position in the market saw a great steep earlier in 2000 because of the emergence of AMD.

• Intel saw a loss in the financial year of 2008 in terms of revenue i.e. they failed to meet their expected profit.

• They have taken the advantage of being a brand leader, by not taking benefits from economies of scale, and provide cheaper items to its consumers.

• They have not focused on the mobile market, which is considered as the future of internet.

OPPURTUNITIES

• Intel should keep customers as their first preference and make changes on regular basis to meet the needs of their users.

• Market penetration and product development will be more than useful if they focus on their existing market.

• Related diversification would prove to be a huge a success for Intel if they focus on cellular or broadband portion.

• They can reduce their production cost by opting for forward and backward integration. It will not only reduce cost but will also result in better quality also.

• They can make partnerships with some of the other brands to make sure they rule the market in every possible way.

THREATS

• As the technology is increasing rapidly, the present manufacturing might just go to waste. • Customer taste might change and their preferences will shift to the other competitive products if they do not get what they need.

• Change in currency value makes it difficult for the company to come up with the perfect pricing strategy, which will benefit all.

• Some of its other strong competitors, which it should take into considerations, are Dell and IBM etc.

• Political issue has become quite a problem in some of the areas.

• Market share becomes very hard to maintain with emergence of new and cheap local companies.

SWOT ANALYSIS OF AMD

AMD focuses on low-end market and mid-range market to increase its share in the market. This thing made quite an impact on Intel because a decent number dropped their core market. This called for quick actions and the present CEO of Intel at that time did exactly the same and it lead to rebirth of Intel in the market.

STRENGTHS

Strong brand in Microprocessor and PC market

Strong focus on Research and development capabilities

AMD has a global presence

AMD operates in GPU (graphical processing unit) and Microprocessor market with only single competitor in each market, Nvidia and Intel respectively.

WEAKNESSES

Weak performance of computing segment due to advent of tablets, handhelds

Lack of penetration into mobile market

Intense competition means limited scope for capturing huge market share

OPPURTUNITIES

Innovation for mobile platforms and tablets

New product and services expansions

Presence in virtualization space

THREATS

Competition from Intel and Nvidia

Environmental regulations

Declining PC shipment

INTEL vs AMD : Analysis

Intel corporation Robert Noyce and Gordon Moore founded Intel in July of 1968. They had each put $250,000 each and got a further $2.5 million in investments.  

Advanced Micro Devices AMD was founded by Jerry Sanders and seven others on May 1st 1969. AMD provides Windows compatible processors alongside other devices such as memory devices and networking products.

Organizational environment

From when Compaq invented the IBM PC clone it was important to be IBM compatible. Eventually IBM lost first place and Intel took the lead. Suddenly it was important to be Intel, Pentium compatible. Microsoft grabbed the standard and declared the AMD’s chips to be “Windows-Compatible”. Inevitability Intel did not like this. Fortunately for Intel AMD (Cyrix IDT chip cloners) all aim for the low-end of the market.

Contrasting both brands

It is widely accepted that Intel processors perform better with applications such as Microsoft Office XP, Word, Excel, PowerPoint etc. AMD however performs better than Intel in games such as Quake III.

Corporate users, Schools, and universities choose the Intel processor for it’s superiority on applications. Gamers and people on low budgets opt for the AMD range of processors simply because they cost less.

Intel low end of the spectrum

Intel slashes the Giga hertz and reduces the level to cache to 256KB on the Celeron range of processors. These processors are aimed at buyers with low budgets.

AMD Low End of the Spectrum

AMD’s low-end processor Duron has a performance advantage over Intel and its own low end processor Celeron. Intel however still has the support of the majority of PC original equipment manufacturers (OEMs)-a crucial factor to its market dominance.

Market Share

Intel clearly has market dominance with 83% of the market. Yet AMD with its mere 15% market share continues to compete with successfully.

AMD’s Athlon line of processors have been successfully competing with Intel’s Pentium 4 processors. AMD has also proved its existence.

Future Forecast

In the next five years we shall see Intel manufacturing an 8.3 Ghz processor and AMD a 7.2Ghz processor based on current processor speeds. It is inevitable that job cuts would be made with both parties, especially Intel shall be forced to reduce their profits by reducing their personnel in order to be at a competitive with AMD.

CONCLUSIONThere has been much debate about which high-end processor is the best purchase in today's highly competitive market, both performance-wise and value-wise. There are two current main competitors in this market, AMD and Intel. Some prefer AMD processors because they offer excellent value for money, while others prefer Intel processors, due to their high performance and comparatively low heat output. At the moment it is clear to see who the leader of the high-end processor market is as far as value for money is concerned. AMD's Athlon XP processor provides performance that surpasses that of the Pentium 4 clock-for-clock and it is also priced much cheaper. What does this all mean? Well, until now, AMD's Athlon XP has been the undisputed leader of the desktop market, offering higher performance than the Pentium 4 and also being sold at a cheaper price. However, things are finally starting to change, with Intel stealing the performance crown from AMD and not looking like it is going to hand it back any time soon. With the Pentium 4 dropping in price every month, AMD seems to be running out of cards to play unless they manage to pull off something special and steal the performance crown back from Intel.

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.

This hypothesis has been proved to be true. AMD ranks in at number 2 with approximately a tenth of Intel’s revenue with only 15% of the market share.

REFERENCES : 

http://www.intel.in/content/www/in/en/company-overview/company-overview.html

http://www.nasdaq.com

http://www.businessinsider.com

http://www.tweaktown.com/articles/236/intel_vs_amd_the_road_ahead/

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