Intel Vs AMD SWOT Analyses.
Intel Vs AMD SWOT Analyses.
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INTEL VS AND AMD COMPANIES’ ANALYSES
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The AMD's main competitors include the NVidia and Intel semiconductor companies.
Both the Intel and AMD are known for producing servers, motherboards, and computer-related
hardware. These two companies have been competing for decades, but AMD enjoys a
competitive advantage (Ch.6) because it has produced semiconductors with higher architecture
than Intel (Bhasin, 2019). Therefore, AMD has been constructing microprocessors that have
higher market demand than Intel. These two companies have resource similarity (Ch.7), and
The ADM Company is among the leading businesses that maintain its central market
position through the SWOT analysis. The SWOT analysis is highly interactive, requiring healthy
management within the various departments in the company, including -finance, marketing, and
strategic planning (Bhasin, 2019). The SWOT analysis helps the business in the identification of
both the external and internal factors. The SWOT analyses of the AMD and Intel Companies are
as discussed below:
Strengths in AMD
The AMD company has various strengths helping in the market place thrive. The
advantages help protect market shares for the existing markets and in the new market's
penetration. Some of the strengths of AMD Company include reliable suppliers who enable the
company out of bottleneck in the supply chain. The ADM Company has also built professions at
new market entry and making a success of them, thus becoming one of their strengths. The
expansion has therefore helped the company to build new revenue brook in the market of
operation.
Weakness of ADM
INTEL VS AND AMD COMPANIES’ ANALYSES
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These are the areas of improvement by the ADM Company. The plan is about choice-
making, and weaknesses are the improvement areas the AMD Company should consider using
the SWOT analysis. Some of the failings of ADM Company are the high attrition workforce rate.
With the comparison from other companies, AMD Company is said to have considered having
the highest attrition rate and therefore have to spend more on training its employees. The
company's other weaknesses include the profitability ratio being below the company's average
Opportunities in AMD
By the SWOT analysis, AMD Company has many opportunities compared with the other
competing companies. The ADM Company has the opportunity to open up new markets due to
the government agreement. ADM Company has acquired the chance of entering the new
upcoming market through the adoption of new technological standards and the free trade
agreement by the government. Besides, AMD has the opportunity for diversification (ch.6) of its
Although the AMD Company has the strengths and opportunities in the new market,
several threats affect the company's growth. One of the threats AMD is the NVidia and Intel
companies who are the two competitors in the semiconductor industry. There are also several
environmental regulations having threats in the existence of product types that might affect the
production.
Strengths
INTEL VS AND AMD COMPANIES’ ANALYSES
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Intel's biggest strength is that they have a long-lasting partnership with Microsoft.
(Ferguson, 2017) Consider for a moment what that means in the way of moving product.
Microsoft is the primary vendor for the government. Every computer the government uses has
windows installed, and an Intel chipset onboard. However, Intel doesn't stop there. Intel has
become the computer world as Coke has become the soft drink world.
Weaknesses
Even though Intel is crushing the PC desktop and laptop world, there are virtually absent
from the mobile world. Apple has had this sector of the market nearly cornered since the
Opportunity
Intel has the largest share of the market when it comes to their microprocessors for PCs.
There is only one option for a consumer when it comes to buying the brain of their custom build;
AMD. AMD has not been around as long as Intel, and their processors are more geared for
gaming, and not some much for workbench applications that would require single thread
rendering.
Threats
AMD has been making moves to gain a larger share of the market. Ryzen and
Threadripper have been major leaps for AMD, and they are offered at a better price for
performance as well. Intel has produced consistently better processors with each release, but they
are pricing themselves out of the market. As custom builds are becoming more popular among
a. List of competitors
Intel and ABM have several rivals in the industry that compete with the firm for the
available customers. Some of these companies consist of IBM, Microchip Technology, and
based in New York City in the US. It was founded in 1911 by Charles Ranlett Flint. The
company's current CEO is Fletcher Previn, and the company provides several products and
services such as hardware, software, and cloud-based services. Many individuals initially knew it
as Computing-Tabulating-Recording Corporation.
corporation's headquarters are based in Arizona in America. The company is listed in the
American stock exchange, and it produces analog, mixed-signal, and Flash-IP integrated circuits.
The firm's CEO is Steve Sanghi, and it earned 3.981 billion USD in 2018. The firm has more
than 14,000 employees and several subsidiaries such as Micrel, Atmel, and Microsemi (Chauhan,
2020). Also, Intel and ADM are currently facing stiff competition from NVidia. It is a US
technology company whose headquarters are based in California. Jensen Huang and his friends
founded the company in 1993. The entity designs graphics processing units for professional and
gaming markets. Besides, the firm also targets the automotive and computing market. But the
industry is an oligopoly, where there are entry barriers (Ch.7) that prevent other firms from
joining the industry. The firm's revenues for the year 2017 surpassed 9.71 billion US dollars.
Finally, the entity has over eleven thousand employees that handle different roles. The other
competitor of the two corporations is Samsung (Chauhan, 2020). The firm is a leader in the
electronics business. The entity commenced its operations as a grocery store before diversifying
Focus strategy (ch.6) Intel is constantly seeking to drastically improve processor speeds
to entice users to upgrade their PCs. (Hall, 2013) Intel has consistently outsold AMD in CPU
sales throughout its history. The most commonly used Intel Processor in 2016 was the Core I7-
6700k. This processor contains 4 cores, 8 MB of L3 cache, and 8 threads. (Lovinus, 2017) The
In 1982, the company signed a contract with Intel to be a second source after Intel for IBM
processors. AMD strived to provide its' customers with the very best product at a reasonable
price, and in 1997, "AMD produces AMD-K6 microprocessor. This allowed for PC's to become
affordable and under $1000." (The History) Despite this, "Intel holds the undeniable market
power at 90% of all sales." (Berkeley) AMD filed a lawsuit in 2004, identifying Intel as the
source of this lack of sales. AMD claimed that Intel had been "paying and pressuring computer
manufacturers to boycott AMD" (Berkeley) and, as a result, going against the United States anti-
trust and competitions. In 2009, AMD and Intel reached a settlement in which Intel was forced
to pay 1.25 billion dollars and adhere to strict guidelines to ensure the competition was not
restricted. (Berkeley) The current AMD processor, most like the Intel Core i7-6700k, is the
AMD FX 9590. This processor contains eight cores, 8 MB of L2 Cache, and 8 threads. The FX
Core competencies (Ch.6): There are three significant areas in which major companies
should examine the two brands of processors, including price, performance, and usage. The
most obvious difference between the two companies is the price. The Intel Core i7-6700k is 200
dollars more than the very comparable (if not even better as far as cores go) AMD FX 9590.
INTEL VS AND AMD COMPANIES’ ANALYSES
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With this price difference, one would expect much better performance from the Intel processor to
examine performance next with a focus on business usage. Because the FX contains twice the
number of cores as the I7, it is better suited for running multiple programs at once, and while its'
single-core benchmarks fall short of the i7, its' multicore benchmarks easily surpass Intel.
Besides, the operating frequency of the AMD processor is a gigahertz higher than the Intel i7-
6700k, which equates to a faster overall processor. (World) On the other hand, i7-6700k also has
its benefits in the performance department. According to the CPU world, "The processor has
higher memory bandwidth, which is quite beneficial to tasks, working with large data sets. Non-
memory bound programs will see lower performance gains." (World) In addition to this, the i7
comes with an integrated graphics processing unit, which can prove important if your business
used 3D applications. For the price difference in the two processors, an equivalent GPU could be
installed while still saving a substantial amount of money. The i7 is also 59% more energy
efficient than its' AMD counterpart (World), which could prove very important if your business
is running many computers, which will outweigh the 58% financial savings you would get from
buying from AMD. Finally, as stated earlier, most computer manufacturers use Intel processors,
and while, after the lawsuit, this is slowly changing, a sizable percentage of prebuilt computers
still possess an Intel CPU (Lombardo, 2017). If your company plans to purchase prebuilt
computers, you will have many more options to choose from if you go with an Intel processor.
Market power (Ch.7) entails the ability of a company in terms of product sales and
competition level (ch.6). Intel and AMD have strived to make the best CPUs they can for their
consumers, and while Intel is still the most commonly known CPU manufacturer, AMD is
quickly rising to the forefront and cannot be ignored. When it comes to choosing the right CPU
for your business, both companies may be a great option for you, but the most important thing to
INTEL VS AND AMD COMPANIES’ ANALYSES
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do is examine the different processors based on your company's individual needs. The AMD FX
9590 is a great processor for small businesses trying to have low startup costs as they are much
cheaper to buy. This processor might also be great for any company that needs to run several
On the other hand, the Intel i7-6700k might be a great fit for a large business that wants
to purchase prebuilt computers bulk from a manufacturer and have a large variety of computers
and manufacturers to choose from. Also, the i7 may be a better fit for a company that needs to
use 3D applications or if graphics are important due to its integrated GPU (Hello Tech, 2020). If
their power bills, the i7 would also be a good fit. The proper CPU to use can vary greatly from
company to company based on their needs and should be thoroughly analyzed before deciding.
There is no one size fits all CPU, but the market provides a customized fit for your business.
Corporate governance (Ch. 10) can be understood as the approach through which an
(Ch.6). It can be focused on the performance of the organization employees, departments, the
(Ch.10) policies (Intel Corp., n.d). Performance management standards are arranged and
disseminated by the task owners and senior leadership at an organization. The functionalities of
specifying job tasks and output provide coaching, and timely feedback compares the actual
behaviors and performance of the organizational employees with desired behaviors and
performance and instituting rewards, among others. Generally, corporate leaders utilize
INTEL VS AND AMD COMPANIES’ ANALYSES
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performance management to align the company's objectified goals with the employees' and
teams' intentions to increase productivity, efficiency, and profitability. On this account, this part
will focus on analyzing the performance metrics and merger (ch.7) synergies (ch.7) of Intel
Intel Corporation is considered the largest chipmaker globally, making it enjoy economies of
scale (ch.8). It focuses on designing and manufacturing microprocessors firstly for personal
computers global markets and currently for data centers. After implementing the new marketing
strategy of transforming the company to a data-centric company from PC, Intel Corporation has
experienced an increase in its revenue from $55.9 billion to $70.8 billion from 2014 to 2018,
respectively a 6% CAGR (compound annual growth). Similarly, AMD company, which deals
with designing and producing solutions of low-power processors and microprocessors for
consumer and computer electronics industries, has experienced a growth from $5.5billion to
$6.5billion in 2014 to 2019 respectively (Corp, 2020). The growth of AMD is mainly contributed
to its segment of computing and graphics. Below is an in-depth discussion of the performance
The main competitive advantage of expanding AMD's growth is its Ryzen processors'
success, which is less costly than Intel processors' price. Also, the shortage of factors of
production (ch.8) such as CPU's chips has made Intel enjoy the dominance in the market as the
company focused its attention on meeting data centers segment demands, thus benefiting AMD
as most OEMs began offering AMD Ryzen processors based on notebooks and desktops
(Advanced Micro Devices, 2020). By comparing the Adjusted Net Income Margin and Gross
Profit Margin of Intel and AMD, it is clear that Intel Corporation is more profitable than AMD.
Intel's gross profit margin has increased from 61%-to-64%, while that of AMD has fluctuated
INTEL VS AND AMD COMPANIES’ ANALYSES
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from 22%-to-38%. Intel's adjusted net income margin experienced a margin growth from 23%
to 30% from 2014 to 2018, respectively. Between 2015 and 2016, AMD experienced an adjusted
loss though it experienced an increase in its gross profit margin from 2% to 8% in 2014 to 2018,
respectively (Advanced Micro Devices, 2020). The valuations ratios of Intel Corporation in 2018
The year 2018 was a strong one for its earnings but volatile as per its stock. The valuation
ratio of Intel improved slightly to 2.3x, a rate higher than of AMD- 3.13. Overall, both Intel and
AMD produce computer processors within a distance that strikes each other in terms of
performance, power, and price (Inc, 2020). Intel's chips offer better single-core performance
though AMD strikes back by offering more cores with better internal graphics and less cost.
Even though AMD is growing faster than Intel, Intel Corporation is the better run as it continues
to implement new global strategies (ch.8) to compete more effectively and efficiently in the
market against its primary competitor AMD. For instance, of late, Intel's stock is positioned well
to benefit from technology innovations such as AI, cloud computing, 5G, and data usage.
D. Due Diligence
Mergers and acquisitions (ch.10) between the selected companies of Intel and Advanced
Micro Devices (AMD) do not require much analysis. The merger between the two
microprocessor companies is set to convert the raging duopoly into a monopoly. In the recent
past, Intel has paid quite a substantial amount in the acquisition of two microchip companies of
Altera and Mobileye. The acquisition of these two companies cost Intel a whopping $25 billion
with which they are still in debt (Sun, 2020). Further, AMD has recently been valued at $30
INTEL VS AND AMD COMPANIES’ ANALYSES
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billion; hence Intel is at no position in financing another merger. The merger cannot also be
approved since AMD is still struggling to deliver quality computer graphics compared to Nvidia.
In further instances, the merger between the two companies is not advised. The recent
acquisitions by Intel will need to bear fruit. Once the new acquisitions bear fruit, the Intel
Company will be at a more significant standpoint to acquire AMD (Bhasin, 2020). The
companies could only involve in partnerships towards the introduction and production of
computers and devices with both their components. The company mergers' key performance
metrics include operational relatedness (ch.7) and sales improvements (Knowledge Leader,
2020). On its own, AMD boasts high income and revenue over the past years with the
exponential increase in revenue income hence sustaining its growth. However, the company also
has high operating costs, which is a downside in the acquisition. The mergers of both companies
will cost Intel their operating costs, set to rise once AMD is on board.
Other than the sales and costs, Intel possesses a higher income reinvestment ratio because
of its increased mergers and acquisitions to ensure strategic flexibility (ch.6) and growth.
Further, the company's recent acquisition involved companies with high involvement in the chip-
making industry (Mukherjee et al. 2004). This not only takes out the competition but also builds
the company operations. Intel companies' increased participation in ensuring the reduction of
competition shows their gestures to save their future in the sector. AMD has not shown any
AMD's rival Nvidia, AMD conceded the graphics industry and developed processors such as the
Ryzen (Diffen, n.d). The question of the support of the merger is not viable. Although both
companies operate in the same scope of the business, their financial data does not allow their
incorporation unless AMD boosts their income stability and reduces operating costs (Amjad,
INTEL VS AND AMD COMPANIES’ ANALYSES
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2019). Supported partnerships between the two companies oversee profits from either side to
support their operations and increase their income values partnerships may lead to its ultimate
merger.
E. Balanced scorecard
Individuals wonder why Intel products are great compared to their rivals, and the reason
for this is that few people have used AMD in computers. For years, some have researched both
companies and what they are bringing to the table. Intel has always stayed a few steps ahead of
AMD for the most part, but with the slight advancements that made it that much better, they
were almost double the price or higher (Ridley, 2020). Having the right CPU is extremely
important in this era, especially if one is planning to keep the computer bottleneck down as much
as possible. Some are hoping to get more people into thinking about their options better, and
maybe over-paying is not the greatest thing to do for a new PC (Personal Computer).
Intel for years dominated the gaming world for PCs. They were the go-to chip for any
(except for AMD fanboys) built Gaming PC (Rig another term for a Gaming PC) (Berkeley,
n.d). They were so renowned and respected that they were able to sell there CPUs at extremely
overpriced rates, and people still gobbled them up. Their top CPU is around eighteen hundred
dollars before tax, which is the "i9 7980XE". Intel is trying to maintain dominance in this area
even though AMD has brought high-end Gaming CPUs that rival even the Intel i9 series for
almost half the price (Ridley, 2020). AMD is a company that started making gaming CPUs and
stayed in the running for a while. It was a while before Intel started advancing there CPUs for
better gaming performance while AMD remained in the shadow of this growing company.
AMD's highest priced CPU is the "Ryzen Threadripper 1950X," priced at eight hundred dollars
INTEL VS AND AMD COMPANIES’ ANALYSES
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before tax. Even though tests show that the Intel 7980XE CPU barely beats out the Threadripper
1950X, AMD is still advancing at a fast pace to finally put Intel in their place (Martindale,
2020).
Intel seems to think that people will continue to pay ridiculous prices for what they
consider better performance and the "to go" company. Since AMD has released the RyZen
CPUs, Intel has scampered and released the i9 series without a hitch to rival AMD's new
As one can see in the chart, Intel's latest top tier CPU is 2x the price of AMD's with little
to no real advantage other than two extra cores and lower TDP (power draw). The competitive
scope (Ch. 6) of the two companies in the same segmented market. Matt Smith wrote an article
INTEL VS AND AMD COMPANIES’ ANALYSES
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on Digital Trends talking about tech's oldest rivalry (Intel and AMD) looks in 2018. He notes
that the two companies produce processors that have common similarities, especially in terms of
price, performance, and power. Intel chips tend to offer better performance per core, but AMD is
compensating with more hearts at a given price (Smith, 2018). Overall, both companies have
flaws, as you can see. Intel would be the lower core count and the high price tag while AMD has
higher power consumption and a lower score on single thread tests. According to Matt Hanson
(2017), TechRadar is talking about what is the best gaming CPU. A Competition was done
between the AMD Ryzen 7 1700 and the Intel I7-7700k, while both CPU's won an equal amount
of rounds (Tests that are given in different ways such as intensely graphical games or even
benchmarks and stress tests) Intel won on the Gaming aspect (Alexander et al., n.d). This does
not mean AMD Ryzen is not good for gaming, and it just means they have a few more tweaks to
The competitive rivalry (Ch.6) between these two companies has benefited their
customers by satisfying their needs (ch.6) when using CPUs. AMD has worked hard for years to
keep up, always staying in the giant's shadows. Many have used AMD FX CPU's, the top one
being the FX9590 (which has a huge overheating problem), which only supports DDR3 memory
while Intel supports DDR4 memory support already. As a company, AMD has just recently
started the use of DDR4 Compatibility with the release of their Ryzen CPUs (Lovinus, 2017)
Besides, AMD has limited their CPU sockets to what they call AM4, which is the step up from
their previous AM3 and AM3+ Socket FX CPUs and their APUs (CPU with Graphics
embedded) FM2 sockets. Comparison of these two companies using their latest lineup of CPUs
will help determine not which is better but to show that one does not need to spend thousands of
dollars on a CPU that will play any if not all games at top settings and be happy with the results.
INTEL VS AND AMD COMPANIES’ ANALYSES
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In conclusion, the rise in the use of technology requires robust workstations and
computers. This can assure both companies the endless demand for their products. However, the
increased changes and the dynamic nature of technology and the sector require their avid
changes and updates in their methods and machines. Further, the companies may also pay close
attention to their financial analysis and gains. The assurance of future business in the industry
depends on the strategies set in the present. Company performance is also of the essence, with
the focus ratios set as company goals and milestones. This way, the rival companies may come
20 keywords used
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