7-1 AMD Case illustrates:  Impact of leadership succession  Design and implementation of cost leadership and differentiation strategies  Technology - challenges of internal innovation  Taking on the market leader

7-2 AMD’s Formula for Success Traditionally competed with Intel by offering low cost versions of Intel products Focused on customer needs (smooth transition to 64 bit) Product differentiation and performance Consistently offer new products in a rapidly changing environment (TTM) Product value proposition is high quality but low-priced products Pursued new alliances. As a component part, Microsoft, HP, IBM and Sun switched because they saw it as a means to increase their market share

7-3 AMD Case Tips:  Neither the “problem” nor “opportunity” is typically obvious  Utilize external analysis, internal analysis and SWOT to identify the issues. State them clearly.  Provide three strategic alternatives  Recommendation should be based on core competencies  Recommendation should address strategic issues  Recommendation should anticipate competitor response