Amd Brazos Launch

1. Yes AMD should follow a Brazos First strategy for the following reasons:

Pros Cons

Fill the void in the small Netbook and notebook Processor market Deviation from AMD’s “Lead with Biggest & Best Product”

A Hot water test for the Entire Fusion Range with small processors The cost of advertisement will be high as most of the budget will be spent in brand awareness

Getting a lead over Intel in terms of product choice and performance Low cost product, will not deliver the same ROMI because of lesser profit margins

Waiting for 9 months in a fast changing market and against a cash rich opponent can be fatal for the product A separate advertisement campaign spread across 9 month period might lead to confusion for the customers and channel partners

Llano has already overshoot the production schedule the certainty of the product available for launch in the planned duration is doubtful Deviation from the pre-planned strategy might incur additional costs

AMD has already spent a lot of amount on the product delaying it will increase the costs for the company as the borrowing costs will be paid even in case of no launch

2. The company should follow the “Brand Startegy” instead of the product level strategy, i.e. most of the advertisement or branding efforts should go into defining “Fusion” as a brand and how it is of value to the customer.

The company is trying to redefine or change the criteria customers have while choosing a computer, this involves changing the perception of channel partners, OEMs as well. Since it is going away from stacking its products vis a vis others (Intel) to defining the new benchmark in the market most of its efforts with the launch have to go in communicating this message across efficiently.

In order to achieve the above positioning for its product it needs