1.

Yes AMD should follow a Brazos First strategy for the following reasons:
Pros Cons
Fill the void in the small Netbook and notebook Deviation from AMDs Lead with Biggest &
Processor market Best Product
A Hot water test for the Entire Fusion Range The cost of advertisement will be high as most
with small processors of the budget will be spent in brand awareness
Getting a lead over Intel in terms of product Low cost product, will not deliver the same
choice and performance ROMI because of lesser profit margins
Waiting for 9 months in a fast changing market A separate advertisement campaign spread
and against a cash rich opponent can be fatal across 9 month period might lead to confusion
for the product for the customers and channel partners
Llano has already overshoot the production Deviation from the pre-planned strategy might
schedule the certainty of the product available incur additional costs
for launch in the planned duration is doubtful
AMD has already spent a lot of amount on the
product delaying it will increase the costs for
the company as the borrowing costs will be
paid even in case of no launch

2. The company should follow the Brand Startegy instead of the product level strategy, i.e.
most of the advertisement or branding efforts should go into defining Fusion as a brand
and how it is of value to the customer.
The company is trying to redefine or change the criteria customers have while choosing a
computer, this involves changing the perception of channel partners, OEMs as well. Since it
is going away from stacking its products vis a vis others (Intel) to defining the new
benchmark in the market most of its efforts with the launch have to go in communicating
this message across efficiently.
In order to achieve the above positioning for its product it needs to market directly to the
customers with the same fanfare as planned for the Llano Launch.This is necessary to
compete with the threat posed by Intel Sandy bridge architecture.
No the decision to advertise in order to change the way consumers view and demand
microprocessors is hardly affected by the order of launch of Brazos or Llano.

3. Value Proposition for Fusion should be based on strengthening the Vision brand i.e It offers
performance along with discrete level graphical performance within a single processor. It
needs to convey that Fusion is an innovation and no other player in the market has, a top
notch graphical performance. Its value proposition should be a No Nonsense high
performance product which delivers value for money to the customer. The elimination in
need for a discrete graphics unit will simplify things for the end user and AMD can price
Brazos at a low price to get its point across and when the market understands the new
benchmarks, Llano can be priced at a premium to cover up for the discounts given to Brazos.
The Positioning should be A No Non sense product offering maximum value for the
customers money and can be achieved in the way explained above.