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Politics : Formerly About Advanced Micro Devices
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To: Duncan Baird who wrote ()1/24/2000 5:35:00 PM
From: Bob Askins  Read Replies (6) of 1571365
 
What is the logic of starting a price war if your competitor can produce more efficiently than you can. Marketing 101 - differentiation on price is the least profitable strategy. Sanders says he wants to give people more for a reasonable price - he is more concerned for the general public than his shareholders. Further more if today's report about strong chip demand for 2000 is true, this approach makes even less sense. If demand is outpacing supply for the industry, why sell out your inventory at lower prices?

Why is AMD on a crusade to become a viable Intel alternative? Is this such a worthwhile and profitable goal - to be a "virtual gorilla"? Why not blaze new trails in new and faster growing technology where you can become a real 900 lb gorilla.

Intel knows marketing and through its extensive marketing campaign has etched in the minds of every Joe Blow that "Intel Inside" is what is standard, decent and the American Way. Lowering AMD chips will only furthur cement the cheap image that AMD has acquired with the K series chips. Why "K" - its synonymous with Kmart and the cheap Chrysler K series. AMD needs more commercials and needs to change its advertising agency.

The market is dumping AMD because the CEO has an ax to grind with Intel and is not acting rationally to maximize profits for his shareholders.

Any ideas why AMD should start a price war? What am I not seeing?
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