I’m a student, and I’m writing a business research project that we were told to do, so I chose to do it on AMD’s acquisition of Xilinx. I need to use the Ansoff Matrix, and I’m unsure where AMD’s decision will land.
Was it a market development because they entered a new market of FPGAs, but they already had products offered by Xilinx or sold the same existing products, such as semiconductor products? Or was it a Product development because they got new products that helped them in 5G, data center networking, and automotive markets that they had limited penetration and product coverage? If so, could you please tell me what are these products? Or was it a Diversification where they got new products and entered a new market/markets simultaneously?
Could you please explain which one it was and why? I will need some evidence to back up whatever I will write in my research paper. I’m confused since I’m not an expert in this area. I hope for your help and expertise.
Thank you
So basically you have a project to write, and you’re asking us to do it for you.
On the question itself, I’d say that attempts to classify things as black and white (or, in this case, red, green and yellow) are simplifications and therefore pointless.
How it fits into your report I’ll leave to you so I won’t answer your question directly, but I’ll give you some context on what the acquisition is for.
So when you look at product markets, Xilinx and AMD are very different. They’re both focused on totally different markets. However, there’s a lot of technical expertise at Xilinx and AMD that both companies can use - there’s a lot of overlap.
Firstly: engineering talent. While Xilinx specialise in FPGAs, they are very leading edge when it comes to working with advanced packaging techniques, which we’ve also seen AMD take advantage of significantly (X3D, MI300). So there’s an overlap here which both companies can take advantage of.
Second up: product IP and software development. You’ve probably recently heard of Ryzen AI, right? That block on the newest mobile Ryzen APUs called the AI Engine is developed by Xilinx - or well it’s their IP I mean. There are instances like this where the two companies can utilise the others IP to improve upon their own products as well.