AMD, Part 1

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Computer Processor Customer Journey: Nordics

Selecting a new or replacement computer processor for business computers takes planning, research, and informed decision-making skills. Business and IT professionals in the countries considered the Nordics region, including Sweden, Finland, Iceland, Denmark, and Norway, have com commonalities in the process of selecting their computer processors.

Identification of Company Needs

  • The Nordic region recognizes an increasing need to digitalise their business models, advertisements, and overall organizational operations. Therefore, business and IT professionals have needed to update their perceptions of needs when making purchasing decisions regarding computer processors.
  • Established organizations originating in the Nordic region are experiencing business disruption due to lagging in their innovation in a digital world.
  • Keeping up with competitors means Nordic businesses need to embrace technology such as artificial intelligence (AI), voice recognition, and blockchain-based platforms. Purchasing a computer processor for a Nordic business should consider these changing technology needs when deciding the options needed in the processor.

Research Options

  • Buying a computer processor for a business requires several considerations, many of which are consistent across countries.
  • The business or IT professional needs to determine what the company needs from the processor. Companies must decide if they need a multi-core or quad-core processor, based on the company's needs. The business or IT professionals must research current and predicted technology needs to make an informed decision.
  • Multi-core processors keep overall processes smooth when the business needs multiple applications need to run simultaneously.
  • Quad-core processors are ideal for more intensive needs, such as businesses utilizing large database management or graphic-intensive applications.
  • Nordic countries recognize the need to use more advanced technology, meaning quad-core processors are likely beneficial.
  • Dell's website offers additional guides and information articles, geared toward individual countries such as Norway, to assist business purchasers in choosing the processor options that best meet the business' needs. Business and IT professionals may benefit from this resource to help inform purchasing decisions.

Purchasing Options

  • Several companies offer computer processor options in Nordic countries. Some of these companies include B&H Photo Video, NewEgg, and Elkjøp. A globally well-known retailer offering computer processors in the Nordic region is Dell.
  • B&H sells new and used computer processors with multiple options and capabilities.
  • NewEgg primarily is a global, virtual store offering multiple processor brands and styles from a central location.
  • Elkjøp has a more limited selection of processors, as this company appears to focus more on selling laptops, mobile technology, and gaming technology.
  • Dell has a wide selection of processors, for business and personal use, in addition to resources on making effective purchasing choices.

Purchase Decisions

  • Many Nordic industries use a flat management structure. This means a variety of professionals in the business and IT department may have a part in purchasing decisions, rather than a particular managerial position.
  • The Nordic region tends to experience a shortage of engineers and IT professionals. Therefore, this region often imports IT talent from other countries. When purchasers are imported talent, the purchasing decisions may be affected by cultural differences.

Purchase Decision Timelines

  • Specific information on lead time to purchase computer processors in the Nordic region was not located.
  • A general recommendation is for businesses to replace their computers, including the processors, every five years. Business and IT professionals should keep this in mind when determining when to budget for computer processor purchases.

Additional Insights

  • The population in the Nordics region tends to be well-educated, due to the free education availability. When presenting Nordic business and IT professionals with technology options, such as components and systems, this factor should be a consideration.
  • The Nordic region is beginning to see areas in which business technology is lacking, which is affecting even the most established businesses. Providing resources to assist Nordic businesses in catching up with current digital trends likely would appeal to purchasers.

Research Strategy

Specific information regarding the typical customer journey in the Nordic region was not publically available. Therefore, research focused on areas of need for business and IT professionals faced with making purchase decisions for computer processors. Research began by reviewing recent information on the technology needs in the Nordic region. These needs were cross-referenced with available research options that may assist in decision-making. Common providers of computer processors serving countries in the Nordic region were located and analyzed to determine unique factors. Lead time for purchases was not located, but information estimating how often purchases would be needed was located. Additional insights to consider when appealing to the Nordic market were identified as well.
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Computer Processor Customer Journey: Greater China

Extensive research into the Chinese computer processor customer journey did not yield any publicly visible results specific to the business or IT professionals. However, a comprehensive view of the general Chinese consumers' journey was established. Most notably, consumers from Greater China are discovering, researching, and purchasing from more brands and products online, and are becoming less focused on brand and price and more focused on value and functionality.

Key Findings

  • Research from Bain & Company, in collaboration with the World Economic Forum, found that China's technology consumption in the next 10 years will be defined by consumers who are richer and middle-class, digitally adept, and understand the importance of developing, personalizing, and sharing data.
  • Chinese computer buyers will be looking for products that are personalized, frequently transformative, sustainable, and socially responsible.
  • Approximately 22% of China's population is expected to be over 60 years of age within the next decade. These elderly consumers tend to look for products that are affordable and easy to use.
  • On the other hand, roughly 35% of China's population, which includes people born in the 1990s or 2000s, will have grown wealthier, become dependent and entrenched in rapidly improving technology and digitization. These younger consumers will instead value higher quality, variety, and convenience, and be less price-conscious than their elderly counterparts. These consumers are also growing less brand-conscious, instead seeking product-specific values like quality, functionality, design, and environmental friendliness.
  • Physical stores are expected to digitize and decrease, while e-commerce and online sales are expected to increase. Singles' Day- China's one-day e-commerce sale- is now the largest global e-shopping day, selling more than the U.S.'s Black Friday and Cyber Monday combined. Event-driven promotions such as Singles' Day are crucial for computer sales, with 57% of Chinese consumers preferring to purchase low-frequency, large ticket sales (such as computers) with a discount.
  • To be successful, retailers will have to increase their online engagement with the consumer and offer cashless transactions. As of 2017, over 50% of consumers in China use cash for less than 20% of their monthly spending- a number that is expected to increase even more over the next 10 years.
  • Chinese consumers largely buy online. Of China's 855M digital consumer base, nearly 57% see online advertisements and subsequently buy online, while 39% see advertisements or promotions offline and also opt to buy online.
  • Another 42% of Chinese consumers try the product offline, in stores, but still, choose to buy online. Less than 30% purchase offline and even these consumers will check product information online first.
  • The majority of younger Chinese consumers learn about new products and brands online. Social media and e-commerce recommendations are the two largest streams, accounting for 55% and 51% of new product/brand information, respectively.
  • When researching the product online, Chinese consumers are most often seeking information regarding the product details, pricing, comments and reviews, popularity, and a convenient purchase method.

Research Strategy

After extensive research, we were unable to find consumer journey information specific to business or IT professionals in China. We attempted to look at industry trends and market research reports as well as trends specific to the largest computer processors. However, these only found trends of general computer processor consumers, not specific to business or IT professionals. We then attempted finding more specific information in China consumer market reports, but again, only found information regarding the general Chinese consumer, not the business/IT professional. We concluded that information specific to the Chinese IT/business professional's computer processor consumer journey is not readily available in the public domain, and instead gathered a comprehensive view of the general Chinese consumer's computer processor purchasing journey as well as some developing and future trends.
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Computer Processor Customer Journey: Germany

Research

  • On the Germany subreddit on Reddit, there have been posts from people who ask about the best websites to purchase computer components.
  • A post on Reddit was made by an individual who noted the price of AMD costs on Amazon Germany. Comments compared the Amazon Germany CPU prices to US prices and deals that others obtained from other German retailers. Many comments were also challenging Amazon Germany as a source of trusted information, citing the user base of Amazon as "less tech savvy people". This gives indication that German consumers of computer processors are avid in comparing prices and where information about computer processors is obtained.
  • Another post features an individual with 350 euros to spare and wants to invest in a CPU and board for both work and play. People responded with their suggestions on CPUs, looking at benchmarks and processing power. They usually have experience with using particular CPUs and give their advice based on their usage.
  • A post by another consumer details a wish to build a new computer for data heavy applications. The individual wanted a more powerful machine to speed up the workflow. The CPU that they are considering was chosen based on their need to run multi-core applications and balances low power consumption and computing power.
  • One German IT professional was looking for a more powerful machine to run 15-20 Linux virtual machines and wanted advice on a CPU to purchase. Many individuals gave suggestions on the specifications the CPU should have, as well as how to make it compatible with virtual machines. A look at the profiles of the people who gave advice reveals that they are IT professionals as well.
  • Another individual with a small business in Germany wanted advice on server and storage capabilities, including advice on CPUs. The comments are from IT professionals and gamers.

Sales & E-Commerce

  • Most of the purchasing of computer parts in Germany is done online. Amazon Germany was mentioned most as the place to purchase computer parts. This decreases the importance of a sales person. Amazon.com in general is by far Germany's top online shopping destination.
  • A post asking about the best stores or markets to buy PC parts had suggestions that were almost all online stores. One individual suggested local computer stores in Germany and mentioned that it may be possible to find like-minded people at physical stores who are also into upgrading computers.
  • There is also a Reddit subforum called r/bapcsalesgermany that is dedicated to computer part sales in Germany. In this subreddit, consumers track prices of different parts, including CPUs, and post when the prices drop.
  • Although indirectly, individuals have conversations with others in the post comments. This influences their outlook on what to purchase, based on how credible they find the information.
  • Consumers also look at data. Followers of companies consistently post data on CPU sales weekly, especially for Mindfactory, one of the biggest technological retailers in Germany. In the comments, consumers discuss CPU design, revenue increases, and performance reports. This, again, influences outlooks.


Lead Time to Purchase

  • Price tracking on Reddit reveals that most tracking in Germany is done on the Amazon Germany, Mindfactory, and Alternate websites.
  • The Amazon Germany shipping methods page offers delivery day guarantee with premium shipping, morning express, same day, and 1-day. This allows consumers to pick their delivery date. For standard shipping, the delivery dates are usually within a week.
  • Mindfactory only delivers within Germany. The website says that if all items are in stock in the warehouse, delivery would take place within 1-3 working days.
  • Alternate offers standard shipping as well as express shipping, where delivery takes place on the next working day.


Conclusions

  • Reddit features posts from many German consumers who want advice on upgrading or refurbishing their PCs. They seek advice on what CPU to purchase.
  • A few of the needs for a new computer processor are described as wanting a more powerful processor to handle more tasks, to boost performance on a budget, and to have a balance between computing power and power consumption. There are many questions about whether a
  • Key research areas for German IT and business professionals are specific to their uses. Some people handle large data sets, while others need to support a server for a business.
  • The relationship the consumer has with the sales person is not important. Most of the purchasing is done online from websites such as Amazon Germany and NewEgg Germany. Barely any human interaction is required during the purchasing process.
  • Lead time to purchases to areas within Germany are on par with domestic shipping in the US.


Research Strategy

We began by searching for German computer processor market trends in press release archives of German IT companies such as Technogroup. With no success, we turned to Google Scholar to find case studies or research reports on consumer trends for computer processors, both globally and within Germany. Although there were studies on how evo-innovative technologies impact consumers and patents for computer processor architecture, we were, again, unsuccessful in finding any statistics or studies on German consumer journey for purchasing computer processors.

We conducted most of our research through Reddit, and it served as a great platform for understanding the questions German consumers were asking about computer processors. There was a large German community of IT individuals and gamers who wanted to upgrade their computers and were seeking advice. Through their questions and answers, we were able to observe what individuals looked for in a new computer processor and what drives their need for upgrading. The subreddits that were used in the research were r/buildapc, r/sysadmin, and r/bapcsalesgermany.

A large population of German computer processor consumers are gamers, and some research provided encompasses the questions that the gamers ask about CPUs. However, information on IT and business professionals was able to be found via IT subreddits.
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Computer Processor Customer Journey: UK

The typical computer processor customer journey for business and IT professionals in the UK has three phases, namely lead, convert, and loyal customer. Lead phase is the stage where the professional or business person collects relevant information on computer processors and dealers in the UK to enable them to make the right purchase choices. Convert phase is the stage where the professional or business person interacts with an identified computer processor dealer and decides to make their first purchase. The loyal customer phase is the stage where the professional or business person likes their experience with the dealer they purchased from and becomes committed to their company.

Leads

  • A lead is a company's potential customer, and it is from this that a company derives its customers. The first thing business and IT professionals in the UK do before purchasing computer processors is to independently consider the type of computer jobs they have and determine the appropriate processors for them. They do this by either studying the information provided on dealers' websites or by consulting with independent technology experts.
  • Tom's Hardware is a world-renowned computer technology publication company, and in the UK, their publications are available here.
  • Tom's Hardware provides technical guidance to enable consumers to acquire the right computer processors at appropriate prices. The advice it offers concerning computer processors is that buyers should only purchase after confirming that the computer processor is compatible with their motherboard.
  • It also notifies buyers that computer processors' clock speed and core counts are the two most important performance determinants. With this information, buyers can choose the ideal companies to conduct a purchase.

Converts

  • Converts are leads who become buyers, and conversion is determined by the quality of engagement leads experience with computer processor dealers' salespeople or customer service staff. Scan Computers is among the leading dealers in computer technology in the UK, and their customers include businesses and institutes of higher education.
  • Scan Computers has a customer rating of about 4.7, according to a survey conducted by Trustpilots in 2018, and they say this rating is based on the company's implementation of the ISO 9001:2015 quality system. They are a typical case study on how computer processor companies in the UK can attract and convert business and IT professionals. The company reports that their staff has a detailed understanding of each technology the company offers, are customer-focused, and always improving on their customer relationship management approaches.
  • Accessibility and visibility in the marketplace plays a key role in converting leads to customers. Scan Computers achieves this by sharing their contacts and services through several channels to enable them to reach a wide range of leads and customers, including professionals and business people.

Loyal Customer

  • Loyal customers are the converts that become committed to a company's offerings, and this is indicated by determining a trend regarding their purchase frequency and purchase volume. Such loyalty can only be attained by having a team with strong customer service skills, offering quality technology at competitive prices, and having excellent before and after purchase services.
  • Novatech is among the top computer technology dealers in the UK, and its customers include IT professionals and business people. An analysis by Trustpilot shows that about 13,000 of their customers rate their services as excellent, while most of them indicate that they have been purchasing technology from Novatech for years.
  • To achieve this level of customer loyalty, Novatech has implemented diverse strategies, including partnering with Intel Corporation, which is among the leading computer processors makers globally. The company has a steady supply of high-quality computer technology stock.
  • It is ISO 9001 and 14001 certified, and it offers instant support services to its customers through various channels. A Deloitte-UK 2018 report states that digital consumers in the UK purchase from companies that have quick before and after purchase services and that offer high-quality technology.

Research Strategy

For this project, we did not find information on the computer processor customer journey for business and IT professionals from sites that provide the UK's technology industry reports. We then decided to get this information by identifying some leading computer processor dealers in the UK and used their case studies to define the typical computer processor customer journey for this market. We assumed that the identified dealers are leaders because their services meet business and IT professionals' demands.

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Computer Processor Customer Journey: US

In the United States, the computer processor customer journey is divided into a couple of steps. The main steps in this journey include problem recognition, information search/research, evaluation of alternatives, purchase decision, and purchase. Purchasing a new or replacement computer processor in the United States typically takes an average of 5 years because that is the average lifespan/replacement cycle of PCs in the United States. A detailed overview of research findings follows below.

Computer Processor Customer Journey

Problem Recognition

  • The first step in the computer processor customer journey is problem recognition i.e. when a business/IT professional recognizes that they need to upgrade their existing computer processor.
  • As previously mentioned, in the United States, consumers typically replace their PCs after an average of 5 years. Assuming that consumers can opt for replacing their computer processors over replacing their PCs, then the average replacement of computer processors in the U.S. also takes around 5 years.

Information Search/Research

Evaluation of Alternatives

Purchase Decision

Purchase

  • All the other processes of the customer journey culminate to the purchasing step.
  • Here, business and IT professionals use all the information gathered in the previous steps to identify a computer processor and make the purchase.
  • The two most popular computer processors that have the capacity to support the professional work of business and IT professionals are Intel and AMD.
  • Examples of popular computer processor resellers include Newegg, Best Buy, and Amazon.
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AMD Market Challenges: Nordics

After an extensive search through industry-related websites, technology websites, and company resources, details regarding the key market challenges that AMD faces in the Nordics do not appear to be available in the public domain. However, the research team was able to gather valuable insights about the key market challenges that the company faces globally.

Key Findings

  • Intel Corporation has been a dominant market leader in the microprocessor space for a long time. Due to the company's significant financial resources, it aggressively markets its products and targets AMD's customers and channel partners using special incentives. These activities have affected AMD's average selling price for several of its products and will likely affect the company's margins and profitability.
  • AMD depends on a few clients for its revenue. If one of AMD's key clients decides to use a competitor or significantly reduces the demand for products, the business would be adversely affected.
  • Uncertain global economic conditions have previously and are likely to negatively impact AMD's business in the future. A case in point is the slowdown in China's economy, a key market for notebooks and desktop PCs. Economic uncertainty could adversely impact consumer confidence resulting in reduced spending.
  • AMD operates in a highly competitive market, which requires the company to constantly develop new products. However, competition is expected to increase due to technological advancements and new product innovations. AMD also faces the challenge of aggressive pricing from its competitors.
  • AMD's global operations are subject to legal, economic, natural, and political risks, which could have a negative impact on the company. The company's key manufacturing facilities are located in Taiwan, Malaysia, and China, all which are subject to different political and socioeconomic conditions.

Research Strategy

After extensive research, we were unable to find information regarding AMD’s key market challenges in the Nordics. We first attempted to look through company resources such as the official website and annual reports. However, these sources highlighted the company’s financial performance in general without any specific information to key market challenges in the Nordics. In addition, the annual reports only highlighted the company’s key market challenges in general without focusing on any region.

We then attempted to look at media platforms and industry sites, such as Barron’s, Yahoo Finance, and Market Watch. We hoped that we could get useful insights from company executives and industry experts. However, these sources focused on companies in the Nordics that purchased AMD shares.

As a last resort, we attempted to look at each Nordic country individually to find if there were unique market challenges. We looked at sites, such as Forbes, PR Newswire, and Seeking Alpha. However, the websites only provided insights into AMD’s anticipated performance in 2020 with nothing specific to key market challenges in these countries. For these reasons, we concluded that information regarding AMD’s key market challenges in the Nordics is not available in the public domain. We then provided insights into the key market challenges that are faced by AMD globally in the findings section.

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AMD Market Challenges: Greater China

Some key challenges that AMD faces in Greater China are stringent environmental laws, and political, legal, and economic risks.

Stringent Environmental Laws in Greater China

AMD's Operations in Greater China Are Subject to Political, Legal, and Economic Risks

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AMD Market Challenges: France

There appear to be no major challenges in the French market for AMD to continue its trend of increasing market share, as no information could be found in the public domain indicating current challenges with the company itself, its operations in France, or within the overarching markets into which the company’s products fall. Notable current issues-to-watch, that may or may not affect AMD’s French market performance, include the slowing demand for semiconductors in the global market and the European Processor Initiative.

AMD’s Current Market Performance

  • AMD’s current market outlook is strong, and they expect to see 28 30% growth in the year 2020 “driven by strength across all businesses” within their company.
  • One of the big initiatives in 2019 for AMD was the “latest expansion of France’s GENCI Joliot-Curie supercomputer.” This amazing machine’s computing power “will be more than doubled in 2020 to reach 22 petaflops of peak performance,” making it the “third most powerful research supercomputer in Europe and no. 1 in France.” Unless this project fails in some way due to the AMD parts, then this will help continue to boost AMD’s standing in the marketplace, and should not present any challenges.

Slowing Demand of Semiconductors

  • Largely because of the trade issues between the United States and China, the global market for semiconductors is expected to “tumble 9.6 percent year-on-year to $429 billion in 2019, down from $475 billion in 2018.” It is unclear whether this will or will not affect the European market (or France’s market specifically) for processors (or other AMD products), though it’s definitely something to watch.

European Processor Initiative

  • The European Processor Initiative (EPI) is a “framework partnership agreement in European low-power microprocessor technologies,” put into place by the EPI Consortium with the European Commission. The goal of the program “is to design and implement a roadmap for a new family of low-power European processors for extreme scale computing, high-performance Big-Data and a range of emerging applications.” This might represent some challenges for AMD in their chip and processor sectors, though it is unclear how (or to what extent) this might affect the company or its French market specifically.

Research Strategy

A deep search of AMD’s performance in the marketplace returned only results pointing to their upward trajectory in the marketplace, in part due to the supply chain issues seen by Intel, one of their major competitors. Focusing specifically on the French sector of AMD’s business returned zero results that would point to any kind of challenges they may face in the market. Additional research into the global and European markets they serve chips, processors, and the like also returned no major issues present in these sectors or this region.
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AMD Market Challenges: Germany

The team could not find any current challenges that AMD is facing in Germany. AMD sales have increased with the release of Ryzen 3000 processors, there have been huge sales, and AMD's market size is on the rise. It is rather Intel that is having difficulty catching up with AMD's innovation in the German market.

Useful Findings: Statistics To Prove That AMD Is Not Facing Challenges In Germany

  • AMD is a leading giant in the German market since it recovered from its lack of innovative products many years ago. Since the release of its recent technology, AMD has seen a positive market surge in many countries, especially in Germany.
  • The price-to-earnings ratio(PE ratio) for AMD is 209.3. At the same time, that of Intel is 13.16, and AMD processors are outselling Intel's processors by a ratio of 5 is to 1 in Germany's Mindfactory stores.
  • The AMD dominance with 82% market share of the major German retailer is proof that Intel is losing big time, and Intel is the company facing market challenges in Germany and not AMD.
  • When it comes to total revenue, AMD processors had 77% of all processors sold while Intel had a 23% contribution. The surge in sales by AMD processors is due to a lower average selling price than Intel. AMD sold over 25,000 processors while Intel sold approximately 5,000 processors.
  • The only seeming challenge AMD had been a lack of launching innovative products, but with the launch of Ryzen 3000, the company has been at the forefront of competition, forcing its rival Intel to drop prices.
  • In the past year, the German market has seen Intel shares fell to an all-time low due to AMD dominance. AMD had a problem with the 2nd Gen Ryzen chips because it lacked in gaming performance, but with the launch of the 3rd Gen Ryzen series, the prices of AMD CPUs have risen to 214 Euros.

Research Methodology

To unearth key challenges of AMD in the German market, the team began by looking for precompiled information on the challenges of AMD in Germany through business publications such as Forbes, PR Newswire, among others. We could not find any challenges of AMD in Germany from Forbes, and the business publication was instead discussing the German economy, EU migration, among others.

The team still went further to look at the individual products of AMD to see if we could come up with major challenges that we could capitalize on, but we unearthed that the only challenge they had was resolved. We also found that AMD had problems with 2nd Gen Ryzen chips because it lacked in gaming performance, but with the launch of the 3rd Gen Ryzen series, it has been a smooth ride for AMD in the German market, and this is not big enough a challenge. From our research, we unearthed that currently, AMD has negative challenges in the German market, which is showing on its market share in Germany and performance. They are having a smooth ride when it comes to advertisement campaigns.

The team also took the market statistics of AMD in Germany to find pointers that could suggest AMD is having serious challenges in the German market. Still, through the statistics of revenue and market share, we could not deduce any pointer to AMD challenges in Germany.

Furthermore, the team took an analysis of AMD concerning market dominance, and we unearthed that AMD is the dominant occupier of the German market after it took time to analyze its challenges and worked on them by presenting the Ryzen 3000 series that could favorably compete in the market, it can be seen that they have long overcome this challenge and it is not proper to use it within the scope of this analysis as AMD's current challenge.

After exhaustive research, the team concluded that AMD is having negative challenges at the moment in the German market due to its innovation in the aspect of product developments such as the Ryzen 300 series.
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AMD Market Challenges: UK

Three key challenges that AMD faces in the U.K. market are sales that lag behind other countries, the General Data Protection Regulation, and Brexit. We tried to find challenges that impact AMD's ability to compete with other companies and the IT Pro/business market, but the aforementioned challenges were the only three key challenges we could find about the company.

1. Sales

  • With regard to Europe overall, AMD's sales substantially trail the totals of other countries. Four countries are ahead of Europe in terms of AMD's net sales, with a total of $470 million in sales in Europe. That's noteworthy because Europe includes multiple countries, one of which is the U.K., yet still ranks below four individual countries in terms of total sales.
  • The country with the fourth-highest sales for AMD is Singapore with $728 million in net sales (2018), which significantly surpassed Europe's total. To put those previous values into perspective, the country with the highest sales for AMD is China, which generated $2.516 billion in sales in 2018.
  • We couldn't find any information about what, if anything, AMD is doing to address this challenge.

2. GDPR

  • The General Data Protection Regulation (GDPR) is a key challenge that AMD faces in the U.K. market.
  • The company emphasized in its 2018 Annual Report that the GDPR, which was enacted by the European Union, "imposes significant new requirements on how we collect, process and transfer personal data, as well as significant fines for non-compliance."
  • We couldn't find any information about what, if anything, AMD is doing to address this challenge.

3. Brexit

  • Brexit is a key challenge that AMD faces in the U.K. market on the political front.
  • The company said in its 2018 Annual Report that "the United Kingdom’s 2016 referendum, commonly referred to as 'Brexit,' has created economic and political uncertainty in the European Union."
  • An October 2019 article from Markets Insider also linked Brexit as problematic for AMD.
  • We didn't find any information about what, if anything, AMD is doing to address this challenge.

Research Strategy

Information about key challenges that AMD faces in the U.K. was extremely sparse. The vast majority of information published about AMD either pertains to the company's strengths (and thus, not challenges) or was global in scope (and thus not U.K.-specific). We implemented four research strategies in looking for information about key challenges AMD faces in the U.K. specifically. First, we reviewed AMD's 2018 Annual Report and looked for every mention of the U.K. therein. There were just a few mentions about the U.K. overall and even fewer regarding key challenges the company is facing in the U.K. There was some information about Europe overall, which we also included because the U.K. is part of Europe and due to the very limited extent on information available on this topic. Additionally, we looked through the press releases for all four of the company's quarterly earnings reports in 2019 to see if any provided information about the U.K. or Europe, but there was no mention of either in any of those press releases. Second, we conducted many searches for any articles that might have either expressly identified or provided information inferring key challenges that AMD faces in the U.K. The only article we found with relevant information was published by Investor Place and we cited to that source in our research findings above. Third, we searched ADM's website by using its search tool and reviewed its online newsroom by using its search tool to see if we could glean any insights about key challenges the company is facing in the U.K. therein, but we didn't find any relevant results through that research approach either. Fourth, we checked the Statista database to see if there were any statistics about AMD's market share, brand perception, or financials specific to the U.K., but the available information was either global in scope or wasn't provided. Through all those research approaches, we were only able to find the three key challenges provided above.
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AMD Market Challenges: US

One of the key challenges AMD faces in the U.S. is brand awareness since U.S. consumers associate high-performance computing technologies with the Intel brand. Another key challenge AMD faces in the U.S. is that it has lower market shares than Intel in the desktop CPU, mobile processor, and server processor markets, affecting the company's ability to overtake Intel as the CPU market leader.

Challenge #1: Brand Awareness

Description & Explanation

AMD's Response

Challenge #2: Relative Market Share

Description & Explanation

AMD's Response

  • AMD is addressing this challenge by launching better performing, 2nd generation products to increase its CPU market shares.
  • AMD is also updating the dynamic local mode (DLM) software for its chips to increase market shares.
  • AMD also aims to "increase the unit sales of its higher-end CPUs by increasing its Threadripper offerings and boosting gaming performance."

Research Strategy

We utilized various financial news and strategy sites like Forbes, Harvard Business Review, and Yahoo Finance to collect information on AMD's challenges in relation to IT professionals and the business market specifically. But we could not find data concerning those particular items. Thus, we expanded our search to consider the general market, which contains all of AMD's potential consumers.
Sources
Sources

From Part 02
Quotes
  • "Indeed, China’s economy will rely on consumption to grow, and the consumers spurring that growth will be richer, older and more heterogeneous than they are today"
  • "Based on our research conducted in collaboration with the World Economic Forum, we see 10 big trends that will define consumption in China in the next 10 years"
  • ""
Quotes
  • "53% willing to pay extra for environmentally friendly products"
  • "54% not concerned about brands, but the actual product "
  • "Suggestions for winning over the new generation include:  Develop differentiated products with unique and emotional experiences  Create more products for Chinese women and millennials and market existing products towards these growing segments of Chinese consumers  Improve interaction with consumers on social media and develop the brand loyalty of potential super consumers."
Quotes
  • "Diversification of categories and products upgrading are becoming new trends in the market. Products should be well-designed and customized to satisfy each type of customer, and targeted promotion is necessary. Creative new products are increasingly favored by the market."
  • "consumers also have a higher pursuit of product functionality"
Quotes
  • "This year, online retail sales are expected to swell to $1.5 trillion, representing a quarter of China’s total retail sales volume, and more than the retail sales of the ten next largest markets in the world – combined. (Exhibit 1) China’s 855 million digital consumers - among some of the most avid users of mobile phones and social media in the world - represent one of the biggest prizes for global marketers."
  • "In an effort to find answers to these questions, McKinsey surveyed over 4,300 digital consumers from across four city tiers and rural areas in China, and from a range of ages and income levels. To better understand their digital behavior, we asked them questions about their digital activities, how they allocate their spending, and their purchasing decision journeys. "
From Part 03
From Part 11