A Brief Overview of Nvidia Business Strategy

By John Dudovskiy
June 17, 2023

NVIDIA business strategy is based on a platform strategy, bringing together hardware and systems, software, algorithms and libraries, and services to create unique value for the markets it serves. The company specializes in markets in which its computing platforms can provide great acceleration for applications. These platforms include processors, interconnects, software, algorithms, systems, and services to deliver unique value.

Nvidia Business Strategy

Nvidia business strategy consists of the following three main elements:

1. Benefiting from the first mover advantage. The multinational technology company has benefited from the first mover advantage numerous times to solidify its position in the market. For example, it popularized the term GPU (graphics processing unit), developed Computer Unified Device Architecture (CUDA) and invented deep learning hardware accelerators, such as the Tesla V100 and T4 GPUs. Benefiting from the fist mover advantage is the core of Nvidia business strategy.

2. Prioritizing performance of products over their costs. Nvidia follows product differentiation business strategy and accordingly focuses on superior performance of its products and services over their costs. In other words, the company’s GPUs, data centre and gaming solutions, Drive and Jetson platforms and professional graphics solutions have the most advanced functions and capabilities, but these come at an additional cost for customers.

3. Vertical integration. The company designs and manufactures its own GPUs and other hardware components through fabless manufacturing, and it develops its own software solutions to optimize performance and enable new applications.

Nvidia Corporation Report contains the above analysis of Nvidia business strategy. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Nvidia. Moreover, the report contains analyses of Nvidia leadership, organizational structure and organizational culture. The report also comprises discussions of Nvidia marketing strategy, ecosystem and addresses issues of corporate social responsibility.

Nvidia Report

Category: Strategy