Amd Turkey Distribution Channel Project

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Date Submitted: 01/14/2012 04:07 PM

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Company Background

AMD (Advanced Micro Devices) is an American multinational company which develops computer processors and related technologies for commercial and consumer markets. The company was found by Jerry Sanders and Edwin Turney in 1969. It is the second-largest global supplier of microprocessors and also one of the largest suppliers of graphics processing units. In 2010, the company generated $6,494 million revenue. AMD is the only significant rival to Intel in the processor market, together they hold %99.1 of the entire market (Intel %80,3, AMD %18,8).

At first, it began as a producer of logic chips, and then they entered the RAM chip business in 1975. During this period, AMD also designed and produced processor elements which were used in various minicomputer designs. After some point, AMD decided to concentrate on Intel-compatible microprocessors and flash memory, became a direct competitor to Intel. Moreover, it became the main rival to NVIDIA in graphic industry by the acquisition of ATI Technologies in 2006.

Current flaws in AMD Turkey's distribution strategy

First off let's start with the current market share of AMD and its main competitor Intel. Intel holds 81% of the market while AMD holds 11.4%. There's

When we take a look at the AMD's distribution strategy in Turkey, we see that there is a lot of potential wasted because of some certain constraints that can be turned into enablers to achieve greater goals in a country with ever-growing young population such as Turkey. AMD actually looks like they are aware of this potential as of 2011 reading the interview with their vice president in Hurriyet newspaper. However, AMD has lost a lot of market share to its nemesis Intel because of this negligence, and it will be not easy to fix the wounds for AMD.

One of the main mistakes that AMD did was, not going after the notebook sales thus keeping the sales very limited in notebook segment. OEM Desktop CPU sales are not dominating the market...