AMD's strategy must based on killing both INTEL and DELL

Strategic situation:

1) Most of INTEL and AMD's revenue came from outside of Americas. Over 59% of INTEL's revenue comes from Asia (including Japan).

2) 64% of DELL's business is in Americas, only 12% of its revenue comes from Asia.

3) HP is winning the consumer market in US; HP and SUN are winning the global x86 server market; Acer is gaining in Europe; Lenovo is gaining in Asia.

4) AMD grows by takeing market from INTEL.

AMD's Strategy:

1) Winning the lower end of US server market, the slashing of Opteron 2xx prices was a decisive move that will drive the Xeons into extinction.

2) Stab at the beast's belly: Asia. For that, AMD must firm up its relationship with Lenovo and enforce JFTC recommendations with various Japanese vendors. Dell is irrelevant in that market.

3) Winning US corporate desktop/workstation market with HP and SUN. AMD should establish a programme to bundle Opteron servers and Athlon 64 PCes for corporate markets.

4) Develop a high end Turion 64 to push down INTEL's ASP on mobile, making all INTEL chips the ultra low end.

An integral part of the AMD strategy should be playing the DELL game for fun and profit. The aim of the game will be:

1) DELL getting bigger and bigger portion of the INTEL pie, right now, DELL accounts for about 25% of INTEL's units, eventually, DELL should account for 40% of INTEL's units, based on the assumption that INTEL's unit share drops to 60%, and ASP drops by 20%.

2) HP, Lenovo, Acer and Gateway becoming more AMD, with Lenovo, Acer and Gateway predominantly AMD.

3) HP and SUN ruling the x86 server market with unbeatable price performance.

4) DELL being pushed into the ultra low end of the PC market with outdated INTEL technology designed by middle-east amateurs.


Always remember:

DELL is just a screw driver company that can be replaced by another screw driver company overnite.