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AMD A Customer Centric Approach To Innovation Case Solution

Solution Id Length Case Author Case Publisher
1890 731 Words (8 Pages) Elie Ofek, Lauren Barley Harvard Business School : 507037
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In today's world, it is difficult to describe what actually customer centric approach is since the majority of the firms say they focus on the consumers. The most important thing to understand is that, for any company, it is important to retain its customer as they are the most important stakeholders of the business and they decide the success and failure of the business. Focusing on the needs of the customers can lead to competitive advantage. Therefor customer orientation is important for any business.

Case Analysis for AMD A Customer Centric Approach To Innovation

In the case study, Advance micro devices had with time focused its attention towards being a customer centric. This was seemingly a new concept in their industry where the focus was more on the technology and product oriented approach. Initially the company received a slow response. Most of the companies had no idea what to say when asked what the company can do for them. The purpose of AMD was to help customers to create a differentiated product according to their needs, which can be useful for them. However, gradually with time when customers started realizing the approach of AMD they relationship and responses improved.

The biggest innovation and approach by the AMD was the torrenza initiative. AMD believed that customer spend billion of dollars on technology, which lack customization and differentiation. This was of less use to customers. Torrenza helped in improving the customer centric approach. AMD opened its Opertron’s architecture and allowed customers to innovate on their platform and create customized differentiated products. Initially there were a lot of disapprovals internally due to lack of confidence and ability. However, the CEO believed that it would revolutionize the way the company works and brings a lot of success.

AMD had already been focusing on the consumers by conducting different surveys and asking them directly what they want. The Exhibit 12 shows the survey was conducted whereby 95% of the respondents said they were aware of the brand called AMD existed while 50% had some knowledge about what the company provides etc. During this survey, it was seen that INTEL had been leading vastly.

Torrenza helped AMD in achieving the customer centric approach. Once the Opertron’s architecture was opened, it helped in prioritizing and identifying the needs of the customer individually. This can be shown in the exhibit 1 AMD had already identified its customer segment according to its product and services. Furthermore, it had also identified the customer segments of its greatest competitor INTEL. 

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