Case Study: Amd vs. Intel Essay

1545 Words Nov 26th, 2012 7 Pages
Group 4

21. Mar. 2010

Competitive Challenges

The competitive challenges between the top two-chip maker Intel and AMD took a new dimension due to different strategic initiatives taken by both the companies. It is obviously clear that in a condition like competition between these two giants the strategies taken by each can emphasize on the other side of market as it influence the success of the company and the competitive environment of the industry.
Clarifying the Hyper competition environment of AMD and Intel or chip industry brings clear understanding of competitive advantage and taking good strategies. The reality that AMD is worried
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For competitive action it should take a strategic or tactical action to build or defend its competitive advantages or improve its market position. In competitive response the strategy counter the effects of a competitor’s competitive action. * Interpreting the Competitive Rivalry Model

Competitive rivalry influences an individual firm’s ability to gain and sustain competitive advantages. So AMD can rely on competitive rivalry model to sustain competitive advantages. Considering the competitive Dynamics are important too. In other word the total set of action and responses should be taken in the way of competing in this industry. Strategic alliance, diversification, acquisition, and merger are the major issues to take into consideration. This is obviously clear and a fact that any strategy has its own risk, so adapting a lower risk strategy is a wise tactic in competitive environment. Sometime in a competitive environment the strategy is in the base of following the competitor it means that the other side has the action strategy and you should take the response strategy model. It means that the best strategy in that environment is responding.

* Predicting Competitor Behavior Based on the Analysis
With the analysis, a firm is better able to predict competitors’ behaviors when forming its competitive actions and responses. The first step of analysis for this concept is finding the major competitor that for AMD is Intel. Providing

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