SWOT Analysis of AMD – AMD SWOT Analysis

AMD (Advanced Micro Devices) is a popular American multinational semiconductor company that was formed during the year 1969 and is headquartered in Santa Clara, California, and Austin, Texas. During the initial stage, AMD had manufactured its own processors where it later outsourced its manufacturing. The main products of AMD are Microprocessors, Graphics Processing Units, Embedded Processors, Workstations and Personal Computers, and Embedded Systems applications.

AMD is the second-largest suppliers in the market for x86 based microprocessors. Over the years AMD has grown into a global company of many employees and achieves many important industry firsts all through the way. At present, AMD develops high-performance computing and visualization products in order to solve the world’s toughest and most exciting challenges.

AMD focuses to transform user’s life with its high-performance computing and graphics solutions. AMD is considered the only company in the world that has high-performance graphics and computing technology. Be it for any technology like Gaming, AR, VR, Cloud, and Artificial Intelligence where these applications require high-performance, AMD put these together into solutions.

AMD’s devices are embedded with the quality policy. The company has a Quality Policy that helps them to uphold the products to the highest standards. The main goal is to deliver excellent products to the customers that are facilitated by combined and responsive partnerships.

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

• High-Performance Computing – AMD focuses to transform user’s life with its high-performance computing and graphics solutions. AMD is considered the only company in the world that has high-performance graphics and computing technology.
• AMD Quality Policy – AMD’s devices are embedded with the quality policy. The company has a Quality Policy that helps them to uphold the products to the highest standards. The main goal is to deliver excellent products to the customers that are facilitated by combined and responsive partnerships.
• Key Areas – AMD has strong brand recognition in the Microprocessor and PC market. This is a big strength for the company.
• Innovation – AMD drives innovation in high-performance computing, visualization, and graphics technologies.
• Global Operations – AMD has its business operations across the world that includes international sales offices, R&D facilities, and joint ventures with manufacturing facilities of assembly/test in China and Malaysia.
• Strategic Sourcing – AMD follows a documented strategic sourcing process that helps to ensure that there is a solid fit between a project’s requirement and supplier’s capabilities.
• Excellent Research and Development – AMD have excellent research and development capabilities that lead to various innovative products.
• Fewer Competitors – AMD main areas Graphical Processing Unit and Microprocessor has only one competitor in the market. This is, in fact, a big strength for its business.
• Technologies – AMD has produced products that work with technologies like CPU, Graphics, and various software.
• Successful Track Record – AMD has created a successful track record of developing new products.
• Guinness World Record Achievement – AMD has received a Guinness World Record Achievement for its production of the ‘The Highest Frequency of a Computer Processor’ during the year 2011.

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

• Less Performance of Computing Segment – AMD sees a weak performance of computing segment due to the arrival of various handheld devices and tablets.
• Less seen in Mobile Market – AMD seems to ignore the mobile market, wherein there is a lot of business that takes place using mobile these days.
• Less Market Share – AMD has intense competition and due to which it sees a less scope to capture huge market share.
• Quality Issues – AMD has seen issues related to quality over the years. This is, in fact, a big weakness to the brand.

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

• Penetrate into Mobile Market – AMD should expand its business into the mobile platforms and tablets. There is more and more business that takes place using handheld devices and hence it is a necessity that it penetrates into the mobile market as well.
• New Product and Services – AMD should expand its product line and services to gain more business opportunities.
• Virtualization Space – The company should expand in the Virtualization Space to gain more visibility that will help to get more opportunities.
• Lost Cost CPU – AMD should product low-cost CPU for the emerging markets that will help them with more value.
• New Consumer Behavior Trends – New trends in the consumer behavior can open up a new market for AMD. This will indeed provide a great opportunity for the company to build up new revenue streams and also diversify into new product categories as well.

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

• Competitors – AMD has two competitors who are a major player in the market, Nvidia and Intel.
• Environmental Regulations – Various environmental regulations are a huge threat to the existing product categories where it might hit the production.
• Rising Raw Material – Rising raw material can be a huge threat to the profit of the AMD.