The impact of selected determinants on the perceived competitiveness and quality of processor manufacturers : a case study

Abstract

Purpose: The aim of the research was to compare Advanced Micro Devices Inc., and Intel processors with regard to selected market and technological determinants that influenced development of AMD and contributed to the increase of its competitive advantage in the processors market. Design/Methodology/Approach: The research was carried out using the analysis of company’s documentation and annual reports supported by statistical data from third party companies like, German retailer - Mindfactory.de or steam community. Additionally in this paper qualitative research was used among customers of AMD processors in order to evaluate the quality of products and operations. Conducted data analysis and empirical research has shown an increase of sales in volume of AMD products as well as an increase in the market share of processors in years 2016-2020. Findings: The results indicate that advanced, innovative solutions have significant impact on achieving a competitive advantage in the market of desktop processors. Further determinates which play important role in this respect are quality, price and building positive relationships through regular feedback. Research reveals that competition entails the need of higher innovation if consumers have higher preferences for quality and lower price. Practical Implications: Presented indicators may be useful for monitoring the performance of any company operating in technological competition to ensure appropriate conditions for the development and growth of its competitiveness. Originality/Value: The specificity of competition based on the model of dynamic oligopoly in desktop processors industry limits the possibility of using exactly same determinants in other competitive markets although some aspects are common and can be taken into consideration by other companies.