1. What would it take for AMD to see a significant increase in its market share for processors used in corporate desktops and notebooks? How can success of the Opteron in the server segment be leveraged to other segments?
It would take a lot for AMD to catch up with Intel as the gap in terms of market share between the two companies is huge. Except in very specialized niche markets, Intel has kept a significant leadership in every segments, including the server microprocessor market where AMD best performed. Between Q12000-Q2006 , the domination of Intel over the market was undeniable with an average of 80% market share against less than 20% average share of AMD.(Exhibit 2c) Moreover as mentioned “Intel’s dominant market position could limit AMD’s ability to make inroads to key market segments beyond servers, such as corporate desktops and notebooks.”
The product differentiation is one solution. By improving the quality and the number of features of its desktops and notebooks microprocessors, AMD can get a competitive advantage over Intel’s product. Though, since Intel’s R&D funds are much higher one good way to overtake Intel would be to perpetuate the “virtual Gorilla” Strategy. Technology partnership would indeed accelerate the improvement of AMD products and would create synergies with partners that, in the case of AMD, often are potential customers .
Then the “customer centric approach” set by AMD to improve and develop its products in a way that serves the best end users is a good idea to explore. It first allows the company to create products with features that are supposed to be very close to customers’ expectations. On the other hand this perpetual communication and mutual feedback introduced between AMD and the end users contribute to build a relationship based on trust that might turn to be a long term relationship.
However, even though AMD had the