Near Monopoly

It would have been a big
surprise if Intel processor was not the favorite of channel partners,
but Intel lived up to the mark and emerged as the most preferred
brand. Unlike motherboards which saw a more level playing field
(though Intel finally pipped the others), Intel processors scored
over AMD across all parameters, be it product quality, marketing
support, aftersales support, commercial terms, online support and
relationship management. There are certain parameters like product
reliability, flexibility in conducting localized promotions,
promptness in stock replacement, and consistency and effectiveness of
communication with channel partners, where Intel's overwhelming
superiority vis-à-vis AMD has been widely endorsed. It is
interesting to note that partners gave it maximum points for
overall product quality, followed by marketing support. Its lowest
score came in online support, though here too it leads AMD
comfortably. But in case, Intel does selfintrospection to record
further improvements, it should bolster the richness of online
resources it offers as well as the
effectiveness of its online portal.

Intel's overwhelming
endorsement of product quality is indeed enviable. From product
reliability to conformance to specifications to user-friendliness of
product to its price versus performance ratio, the results are
startling. Its overall marketing support in terms of flexibility in
conducting localized promotions, innovativeness in marketing programs
and quality of marketing manpower have been widely lauded. So have
been its promptness in stock replacement, proactive services approach
as well as its technical expertise in resolving problems.

As far as AMD is
concerned, it has to catch up in a number of areas. Of particular
concern will be the channel partners' lack of confidence in AMD
about the diversity of its product range, lack of point-of-sales
material, its inability to provide satisfactory repair and
replacement services, the profit margins it offers to partners and
the reward systems it offers. AMD also lacks badly in providing
online support-slow turnaround time, ineffective online portal and
inadequate online resources. There are some silver linings
though-partners appreciate AMD's credit policies, flexibility and
transparency in commercial terms as well as proactive services
approach.