Internal and External Environment Analysis of AMD - Example

Internal and external environment analysis of AMD {Insert student’s name} {Insert instructor’s name} November 16, 2011. Internal and external environment analysis of AMD Recommended vision statement for AMD To be a world class company in the semiconductor sector and manufacture high quality and modern technology that will impact positively on the lives of people all over the world. Mission To be a leader in provision of technology by providing high quality digital solution that will empower modern business in addition to impacting positively on the political, social and economic status of countries all over the world. Macro environmental analysis of the AMD company Technical environment Several decades ago, individuals utilized abacus for the purpose of solving mathematics problems. In 1623, the first mechanical calculated was invented. However, after invention of electricity, new forms of calculators started to emerge. In the years that followed, computers and advanced forms of technology were invented and due to this the semiconductor industry strived to provide the same. In regard to this, the AMD Company is one of the pioneers in the semiconductors industry which have strived towards providing high speed computers by using minimum energy in which it has achieved in the global market. The company has strived towards inventing small bit transistors in order to manufacture faster computers or processors in the market (Robinson& Pearce, 2011). Natural environment The AMD Company has made the cost of manufacturing computers low in addition to reducing their sizes and utilizing minimum amount of energy (Robinson& Pearce, 2011). Economic environment Due to the economic crisis the affected the world and in particular the 2008 global economic crisis, consumers spend less on semiconductor and computer industries. AMD was affected negatively and thus there was a decrease in the sale of computers making it to suffer financially (Robinson& Pearce, 2011). Demographic environment The world’s population is growing at a faster rate. It has been predicted that the world’s population will be approximately 8 billion by 2025. However, it has been noted that the population of developing countries is increasing faster as compared to those of developed countries. Elements such as age, health system, religion, sex and educational requirements are essential in the semiconductor markets. AMD Company has concentrated on manufacturing and providing students all over the world with modern and faster computers. The company has also participated in supporting training programs in addition to struggling towards contributing to IT infrastructure on a global perspective and in particular Africa (Robinson& Pearce, 2011). Cultural environment The cultural environment refers to social organization, religion, values, attributes, religion and the language of the people. Decision making pertaining to buying of AMD products depends on the aforementioned cultural elements. In Christian countries more products are sold during the Christmas season including computer products while the same applies to Muslim nations during the period of Ramadan for instance in 2007, the revenue of AMD company increased considerable during Christmas. Hence, the company has put this into its strategic planning. Strengths AMD is the second largest company in the industry of semiconductor in addition to being recognized as the third largest organization in the industry of graphics. According to its 2008 statistics, AMD had approximately 15, 653 employees in the same year the revenue of the company was reported to be $ 6,013 billion. Moreover, the products of the company are cheaper as compared to those produced by Intel Company. Furthermore, the company has put in place a number of facilities in addition to developing and research centers. The research center of the AMD Company is made up both associate and senior researchers who operate from the main offices of the company. The researchers aim at providing direction in addition to conducting researches which are geared towards making the company to be leading firm in the semiconductor design industries (AMD, Inc., 2011). The staff and research team of the AMD Company are highly talented with academic and corporate experience which enables them to perform their duties in line with requirements of future computing technologies and architectures. Additionally, AMD is the only company that manufactures Antlon which has 64x 2 microprocessor. In addition to that it manufactures Compaq and HP which are preferred by all types of users regardless of age, sex, gender and economic status. Consequently, strength of the AMD Company is drawn from its Automated Precision Manufacturing Systems which enable it to manufacture high quality products within the shortest period of time (AMD, Inc., 2011). Moreover, the company later introduced ATI Radeon HD 5970 which has proven to be the fastest and most preferred graphic card not only regionally but also all over the world. Additionally, the company has designed the graphics cards to support PC games which are highly demanding. This has result into good performance in the current gamming such as Direct X 11. Moreover, the AMD Company had simplified the buying procedure and experience for its clients by establishing a VISION technology (AMD, Inc., 2011). VISION technology has in built features which communicate directly with the company on the experience of the users concerning the PC. The company also has a six core AMD Opteron processor which provides increased performance by utilizing energy efficiently. It also has AMD platform technology which is called dragon. Dragon is meant for PCS of desktops which performs efficiently through combination of both AMD phenon, CPU of the AMD Company which performs faster in addition to the 7-series chipsets. Its products are energy efficient for instance AMD Opteron (AMD, Inc., 2011). Weaknesses of the AMD AMD is widely known for its bad reputation which is as a result of it being in the second position in the late maturity market an aspect that has made it to be regarded as a second company in semiconductor industries. Moreover, instead of the company’s revenues increasing on annual basis, the revenues of the company has been reported to be decreasing considerably (AMD, Inc., 2011). External factors opportunities The Company explores low prices strategy whereby its products which are not only modern but also of high quality are sold at lower prices as compared to similar products from other companies in the same line of production such as Intel. Moreover, the company has a gaming evolved program. The membership of the same doubled and more partners joined the program two years later after it was launched by the company (AMD, Inc., 2011). The company organizes fusion development summits every year in which it records high attendance rate. The company has received a number of awards ranging from the Best Choice Computex Taipei Award which it received in 2011 to receiving approximately 300 awards for being the best manufacture of PC including dell, Acer, HP, Toshiba, Samsung, Asus and Sony among other brands. Moreover, there is AMD live which is received via its digital platform TV (AMD, Inc., 2011). Threats The company faces competition from Intel which is the dominating firm in the industry. The company is also being threatened by the current economic crisis which results into decreased revenues for the company as the purchasing power of the customers all over the world is interfered with in addition to raw materials being costly as a result of the same (AMD, Inc., 2011). Future objectives for the company MDA Company should aim at dealing with multimedia technology in association with the QUALCOMM incorporated. Moreover, the company should aim at expanding its gaming sector. This is because gaming is one of the external opportunities it has in the semiconductor market. It addition, it should release more core processors in order to maintain a high niche in this particular market and also expand its market base. Conclusion Based on the above analysis of the AMD company, there is need to combine a number of marketing strategies so that the company can continue enjoying larger market scale. To attain this company need to utilize the 3Ps of services in addition to the 7Ps of marketing. Moreover, it is important for the AMD Company to appraise both the macro and micro environments and found solutions for the existing threats and weaknesses of the company. In summary, the semiconductor industry such as the AMD Company holds an important place in the computer industry. Even though, most computer and semiconductor companies make profits on a short term basis, the industry can be profitable if it is considered a long term project. References AMD, Inc. (2011). Corporate Information. Retrieved from http://www.amd.com/us-en/Corporate/AboutAMD/0,51_52_10554,00.html Robinson, R., & Pearce, J. (2011). Strategic Management: Formulation, implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin. Read More