TOWS Analysis Strategies for AMD

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SO Strategy – International Strategy

AMD has a strong product portfolio and has an opportunity to expand sales with the demand for PCs in the world. The company needs to use an International strategy to generate more profits. AMD would use its broad product portfolio to implement the International strategy. The company has a broad product portfolio and strong research and development wing which would enable the company to meet the growing demand for PCs in the world. The best thing is that the company produces almost all the parts of the computer from Chipsets to Graphic cards, the same increases the chances of the company to outdo its competitors because the competitors are majorly into the production of the processors. The company has also taken an international route which has ensured more sales and the capture of a chunk of market share.

ST Strategy – Differentiation Strategy

AMD must use a Differentiation strategy to address its threats. In the semiconductor market, all firms produce the almost same product with different names and speeds. If one company finds something, other companies try to duplicate it. Therefore, AMD has to differentiate its product in order to compete with its competitors. AMD would use its strong research and development wing to differentiate its broad product portfolio. By differentiating its products, AMD’s product value will increase and take over its competitor’s market share easily. AMD plans to combat its competition by producing fusion chips. “AMD’s Fusion chip, a combination between a central processing unit and the GPU (graphics processing unit) in single silicon die. With the fusion chip, AMD could stir some pretty big waves as the company would then have a definitive advantage over the semiconductor market. ” [20]

WO Strategy – Focus Strategy

The company is excessively dependent upon its computing products the same has resulted in a weak financial setup for the company. There has been a lot of demand for PCs and Video Games, the graphic cards used to play video games are heavily in demand, the company can make use of this opportunity and satisfy the need of the market which is the production of graphic cards. The company clearly has an edge over the other competitors because of the ATI graphic cards. AMD plans to produce powerful ATI graphics cards with its semiconductor technology. By making the use of ATI graphic cards the company can easily satisfy the demands of the market and in addition to this, the company can also produce a high-end gaming experience for all the consumers with the help of the graphic cards. The company can decrease its over-dependence on computing products by producing high-quality graphic cards. This strategy is ought to increase the company’s value and reduce its risk of any fluctuation in the market, and boost up its revenue.

WT Strategy – Strategic Alliance Strategy

Weak financials make a big problem for AMD to compete in the semiconductor market. Due to weak finances, AMD could not invest in new products, thus its sales and revenues decreased. Strategic Alliance with a financially powerful company gives AMD power to compete in the market. Companies should be innovative to compete in the semiconductor market, but in order to be innovative, companies must invest a lot of money in research and development, failing to do so means the company fails to invent any new product and ultimately the existence of the company would become one big question mark. By cooperating with the financially powerful company, AMD gets financial to produce new innovative products. Thus, AMD can enter other markets where its competitors are and catch those producing the latest processors. This would help AMD to compete with them and increase its sales. Strategic Alliances are needed for AMD to produce new products to stay competitive.

TOWS Analysis Strategies for CTC

SO Strategy – Cost Leadership Strategy

CoreTech Corporation is strong in producing products cheaper than its competitors. Lower price is the biggest competitive advantage of any company and this is exactly why nobody competes with CTC. With the cost leadership strategy, CTC would take the opportunity of growing the semiconductor market and make it more profitable. CTC produces its processors in China and India, these are the best places for Information Technology and offer a lower cost of production. Another advantage which the company has is that it is a Chinese company, the same gives them an excellent opportunity to enter a new market where very little is known about them. Consumers who haven’t heard of the company will naturally get attracted to the lower price and buy its products. With the cost leadership strategy, the company will be able to make more profit in the semiconductor market.

ST Strategy – Downsizing Strategy

CoreTech Corporation must use a Downsizing strategy in order to combat overcapacity and global recession. With the global recession and overcapacity in semiconductor manufacturing, the sale of semiconductor products would decrease significantly. Therefore, semiconductor prices will diminish and this will push semiconductor companies to reduce their prices. In order to reduce the production cost, CTC must use a Downsizing strategy. CTC needs to cut expenses by reducing the number of employees in its operational units. This would help the company to make a profit and reduce its production cost. Doing so would also eliminate the unsold or unpopular product line and help the company in making profits. With downsizing, CTC will keep a lower cost of production and in this way, the company will stay competitive in the market and save itself from the recession. The downsizing strategy is what CTC needs to implement to counter the threat of overcapacity and price erosion.

WO Strategy – Joint Venture Strategy

CoreTech Corporation’s one of main drawbacks is graphic products. CTC has the opportunity to collaborate with many North American companies. The company needs to use a Joint Venture strategy to enter the graphics card market. The demand for graphics cards is increasing and the market is becoming very profitable, but CTC is not taking the advantage of it because the company is not able to produce graphic products. CTC has to create an independent company with another company that has experience in the graphics card to enter the market. In this new firm, both companies can share their resources and capabilities to produce new graphics cards. CTC can use its powerful marketing and manufacturing facilities to sell lower-cost graphics cards around the world, and the experience of the other company can help the new firm to produce powerful graphics cards. This formation helps CTC to compete in the graphics card market and become a major player like the semiconductor market. A joint Venture strategy is needed for CTC to enter the graphics card market and become more competitive in the market.

WT Strategy – Strategic Alliance Strategy

CoreTech Corporation has a big problem with defective products and rapid changes in the technology industry. The company needs to follow the Strategic Alliance strategy under which the production of defective products can be prevented. CTC needs to make alliances with the company which has strong quality control and testing facilities. With the implementation of this strategy, both companies can exchange and share their resources and capabilities to produce superior products with zero defects. CTC can increase its quality control and invest more in research and development. Thus, the company can launch its new products quickly with no defects and this increase will certainly increase customer satisfaction and sales. Both companies can gain by this merger and hence it is highly advisable.

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