BUSINESS COMMUNICATION &

ANALYSIS
A COMPARITIVE STUDY OF INTEL COMPANY
WITH AMD

Submitted By
Saket Nandan
FMG C- 23
231127

Table of Contents
INTRODUCTION...................................................................................................... 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

INTRODUCTION
Intel Corporation is an American multinational semiconductor chip maker
corporation headquartered in Santa Clara, California. Intel is one of
the Worlds 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.

Intels 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 secondlargest 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 worlds 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 AMDs chips to be WindowsCompatible. 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
its 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

AMDs 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.
AMDs Athlon line of processors have been successfully competing with
Intels 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.

CONCLUSION
There 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 Intels revenue with only 15% of the market
share.

REFERENCES :

http://www.intel.in/content/www/in/en/companyoverview/company-overview.html
http://www.nasdaq.com
http://www.businessinsider.com
http://www.tweaktown.com/articles/236/intel_vs_amd_the_road_
ahead/index6.html
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