To restore its own cash, AMD has two possible paths:
- commercialize a stunning product, at a premium price (K8 Strategy);
- commercialize a stunning product, at “human” price (K7 Strategy).
We have to exam the context: “The context also include what’s happening in the market. In the timing for you idea right? […] It’s like riding a wave. If you’re too early or late you’ll go nowhere. Catch it just right and you’ll get a long and profitable ride is your difference” (Differentiate or Die, by Jack Trout, Pag. 47).
We know that ARM is not a viable way today (K12 has been postponed), and we know that low-end and middle-end PC markets are slowly dying. The core of the PC market is today composed by Enthusiast users (Core i5/i7) and Prosumer users (HEDT). AMD has to attack these markets. A lot of people want to upgrade its own Socket 1366/1150/1155 platform, but these users didn't upgrade their PCs with Skylake or Broadwell-E, so RyZen could be a winner only if it will have a good price/performance/feature ratio. RyZen must have an aggressive price!
Lower PC markets are non influential: to surf the web or to write a document, a Celeron or a tablet is more than enough.
To accomplish this goal, AMD has to improve its marketing department. The “Radeon Rebellion” campaign follows this strategy: high quality products, relatively low prices. AMD can sell excellent products at an excellent price: “Every aspect of your communication should reflect your difference. Your advertising. Your brochures. Your web site. Your sales presentations” (Differentiate or Die, by Jack Trout, Pag. 69). AMD will not change this strategy when RyZen will be commercialized: “More aggressive marketing may be called for in periods of lessened buying interest so that companies can push their products through larger consumer benefits. Automobile makers across the globe follow such kind of strategy during the economic downturn stage. While the industry sale figures may experience cyclical variations, the successful firm has a rising sales trend line due to aggressive marketing. Such kind of persuasion of an aggressive marketing strategy depends on the manager’s ability to foresee, correctly estimate and reach new market opportunities” (Marketing Management, Second Edition, Tapan K Panda).
RyZen will be where the actions is (Enthusiast and gaming markets): “Marketing is “Where the actions is”, primaly because it is the most exposed of all business activity. […] In fact, in the minds of most consumers the marketer is the company” (Marketing Management, Second Edition, Tapan K Panda).
According to these statements, RyZen CPUs have to be a stunning product, and have to be sold at "human" prices to be successful.