Thursday, June 14, 2012

Nvidia's Strategy; What Next

But there are many difficulties on both parts, and both are far from sure things.

Nvidia's chosen field is one of the fastest moving and most competitive on the planet.  It's successful strategy of 1998-2008 does not ensure enduring success.  In particular, by 2009 the waves of change Nvidia had exploited in its rise were waning.   

Strategically, Nvidia is presently engaged in a two-pronged pincer movement.  One initiative has been opening up access to the computing power of its graphics chips.  Each graphics processor contains hundreds of separate floating-point processors.  Its new hardware supporting this concept is called Telsa and delivers desktop supercomputing.  In November, 2010, Chinese researchers announced the world's tastes supercomputer-powered by Nvidia Tesla graphics chips.

The second arm of the pincer is Tegra--a complete system on a chip. This tactic is called "disruption from below" and aims to upset the Intel-AMD-Windows hegemony by building on a much simpler, more efficient platform.  The chip is aimed at the makers of smart phones, net books, and game consoles.   

This pincer movement offers two ways to succeed and makes trouble for competitors.  But there are many difficulties on both parts, and both are far from sure things.

ACTION POINT: Strategy is an ongoing consideration for every business.

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