SWOT Analysis of AMD (Advanced Micro Devices)

SWOT Analysis of AMD (Advanced Micro Devices) focuses on Strengths, weaknesses, opportunities, and threats. Strength and Weakness are the internal factors and Opportunities and Threats are the external factors which influence the SWOT Analysis of AMD (Advanced Micro Devices).

AMD (Advanced Micro Devices) has become a famous American global semiconductor company based in Santa Clara, California, and Austin, Texas. AMD had manufactured its own processors during the early stages, where it later outsourced its production. AMD’s main products are microprocessors, graphics processing units, embedded processors, workstations, and personal computers, as well as embedded systems.

AMD is the industry’s second-largest supplier of x86 based microprocessors. Through the years, AMD has developed into a multi-employee global enterprise and enters in to many significant businesses. Today, AMD is designing high performance computing and simulation technologies to address the hardest and most exciting challenges in the world.

With its high-performance computing and graphics tools AMD focuses on improving user life. AMD is known for its high-performance graphics and computing technologies. Whether it’s for any technology such as Gaming, AR, VR, Cloud, and Artificial Intelligence where high-performance applications are required, AMD puts these together into solutions.

The Quality Policy integrates the AMD devices. The company has a Quality Policy which helps them to maintain the highest standards of the products. The main aim is to provide the consumers with excellent goods which are supported by integrated and receptive partnerships.

Strengths in the SWOT Analysis of AMD (Advanced Micro Devices)

• High-performance engineering – AMD focuses its high-performance computing and graphics technologies on improving user life. AMD is regarded as the world’s only organization with high-performance graphics as well as computing technologies.
• AMD Quality Policy-The products of AMD are incorporated in the quality policy. The company has a Quality Policy which helps them to maintain the highest standards of the products. The main aim is to provide the consumers with excellent goods which are supported by integrated and receptive partnerships.
• Brand Awareness-AMD has good brand awareness on the market for microprocessors and PC. This is a great strength for the enterprise.
• Innovative Products– AMD drives innovation in high-performance computing, visualization technology and graphics.
• International Operations – AMD has operations worldwide that include foreign sales offices, R&D centers, and joint ventures with assembly / test production facilities in malaysia and china.
• Strategic Sourcing – AMD follows a recorded strategic sourcing procedure, which helps ensure a good match between the requirement of a project and the capabilities of the supplier.
• Good R&D – AMD has outstanding research and development capabilities leading to numerous creative products.
• Less Competitors – AMD ‘s main areas are Graphical Processing Unit and Microprocessor, with only one competitor. In reality, this is a huge strength for its company.
• Technologies – AMD has produced products that work with CPU, Graphics, and various software technologies.
• Good Track Record-AMD has built a strong track record of new product growth.
• Guinness Book of World Record – AMD has been awarded by Guinness Book of World Record for its ‘Highest Frequency of a Computer Processor’ output in the year 2011.

Weaknesses in the SWOT Analysis of AMD (Advanced Micro Devices)

• Less Computing Segment efficiency – Due to the arrival of various mobile devices and tablets, AMD sees a poor performance of computing segment.
• Less seen in Mobile Industry – AMD seems to neglect the smartphone market, where a lot of business is taking place these days using the device.
• Lower market share – AMD has heavy rivalry, and because of this it has a narrower room for winning large market share.
• Quality Problems-Over the years, AMD has seen quality issues. p  In reality, this is a major weakness for the company. Less Preferred :  AMD Processors are less preferred by customers as compared to Intel Processors due to its performance and Heating. Heating in the Processors cause PC to hang this is not good for the company.    
• Weak Promotional Strategy: AMD has a weak Promotional Strategy. Company has to follow aggressive promotional strategy to compete with its competitors.

Opportunities in the SWOT Analysis of AMD (Advanced Micro Devices)

• Mobile market penetration – AMD will extend its business to include internet channels and tablets. There is an growing number of companies using handheld devices and it is also a must that they enter the smartphone market too.
• New Product and Services – Edge will extend its line of products and services to create more opportunities for business.
• Virtualization Space – In order to gain more exposure, the organization will grow in the Virtualization Space, which will help get more opportunities.
• Low Cost CPU – AMD is expected to manufacture low-cost CPU for the developing markets to provide them with greater value.
• New consumer behavior trends-New consumer behavior trends will open up a new AMD market. It will also provide the company with a tremendous opportunity to develop new revenue sources, as well as diversify into new product categories.

Threats in the SWOT Analysis of AMD (Advanced Micro Devices)

• Rivals-AMD has two competitors, Nvidia and Intel, which are a big player on the market.
• Environmental Regulations – Numerous environmental legislation pose a major challenge to current categories of goods where they could affect the production.
• Rising raw material – Rising raw material can be an enormous threat to AMD ‘s profit.
• Change in FDI Policies and Semiconductor Pricing can directly effect the company.

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