Innovation and New Product Development Case Study

AMD’s “Virtual Gorilla” Strategy

OR

Abstract:
Since its origin in 1969, AMD had evolved from a second source player, to an upcoming challenger to Intel. Though Intel dominated the microprocessor industry since 1980s, AMD‘s introduction of dual core Opteron resulted in a steady increase in its market share. AMD planned to move to quad-core processors by 2007. Intel planned its pricing, marketing programs, product bundling, new product introductions and other strategies to hamper AMD’s growth. With a stiff competition in the microprocessor market, analysts were of the opinion that it would be difficult for AMD to achieve a growth of 30% by 2007. Does AMD have the brand image to achieve growth amidst stiff competition? Will AMD’s position in the microprocessor market improve further? Can AMD win over Intel using its virtual gorilla strategy on a longer run?

Pedagogical Objectives:

• To understand how a small player can compete with the market leader
• To discuss how technology plays a vital role in company’s growth.

Keywords : AMD; INTEL; Microprocessor industry; Innovation Management Case Study; Strategic; partnership; Innovation; Leadership; Virtual Gorilla strategy; Secondary source of Intel; Technological leadership; Low price

Contents:

• AMD, a Clone of Intel
• David vs Goliath
• Virtual Gorilla Strategy
• Strategic industry partnership
• Challenges Ahead