GLOBAL BUSINESS STRATEGY

(IBM 641)

GROUP ASSIGNMENT (NBI8A)

ROBOTICS & AI COMPANY - NVIDIA

PREPARED BY:
NUR HAZWANI HAIDA BINTI MD HASAN (2019840074)
NUR ATIQAH BINTI ZAHARUDDIN (2019853762)
FARAH NAJWA BINTI NAZARUDDIN (2019653198)
SHARIFAH NURULSYAFIRA AL-YAHYA BINTI HABIT NOH (2019615594)
ASFARENA SAMION (2019840814)

PREPARED FOR:
DR. FAIZAH BINTI MASHAHADI

SUBMISSION DATE:
14TH MAY 2023
Contents
1.0 INTRODUCTION ................................................................................................................... 2

a. Main Objective or Problem ...................................................................................................... 2

b. Problem Statement or Objective ............................................................................................... 2

2.0 BACKGROUND ..................................................................................................................... 3

a. Nvidia Background Information, Relevant Facts and Objective or Problem ................................. 3

b. Researched the Problem or Objective in the Nvidia Company ..................................................... 3

3.0 EVOLUTION OF THE COMPANY ....................................................................................... 4

a. NVIDIA Competitor .................................................................................................................... 4

b. Nvidia Robotics/AI Value Chain ................................................................................................. 5

c. Nvidia Company Competency ................................................................................................. 5

d. Impact of AI on Nvidia competitiveness (VRIO) ..................................................................... 6

Value of Resources (V) ................................................................................................................ 6

Rareness of the resources (R) ....................................................................................................... 6

Imitation Risk (I) ......................................................................................................................... 7

Organizational Competence (O) ................................................................................................... 7

4.0 CONCLUSION........................................................................................................................ 7

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1.0 INTRODUCTION
Nvidia Corporation is an American multinational technology company incorporated in Delaware
and based in Santa Clara, California. Software companies integrate graphics processing units (GPUs)
into application programming interfaces (APIs) for data science and high-performance computing and
system-on-chips (SoCs) for the mobile computing and automotive markets. Nvidia company also
provides hardware and software of all intelligence and computer manufacturing. Professional GPU
clusters are used in almost every task for applications such as engineering, architecture, multimedia
entertainment, automotive, scientific research, and design.

Nvidia also provides an API called CUDA that allows the creation of programs called CUDAs to
run such programs using GPUs individually. They use supercomputing all over the world. Tegra is a
smart phone and tablet as well as a navigation and entertainment system for cars. Additionally, AMD's
other competitors include Intel, Qualcomm, and other advanced AI software companies such as
Graphcore. It also develops AI-powered software for audio and video processing, for example. Nvidia's
offer to acquire Arm from Softbank in September 2020 expired in February 2022 after it was completed
following an extensive regulatory review, although it was a major acquisition of semiconductors.

a. Main Objective or Problem

NVIDIA's company establishment objective is to annually track and report key metrics to measure the
success of these application programs that are designed and built to the extent that they can be
successfully commercialized. The progress graph shows the progress made in 2016 compared to 2015
and outlines our goals for 2017.

The objectives of the report include:

• Helping current suppliers to realistically assess their financial, technological and marketing
capabilities compared to other competitors which are their priorities.
• Assist market participants in evaluating potential acquisitions and candidates for joint ventures.
• To complement information gathering efforts from competitors within the organization with
objective analysis, interpreting data and insights.
• NVIDIA motivates 89% of its employees. With the company's mission being the most important to
their job which is 29%. And 33% of employees stay at NVIDIA because of its mission and vision.

b. Problem Statement or Objective

Other problems arising at the moment related to NVIDIA applications are such as the first GeForce
driver update of 2021 which was released in early January promising to solve the problem that afflicts

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most of Nvidia's GPUs which are graphics processing units. The update rendering program is not fully
usable for some people.

A large number of complaints have formed on the official feedback thread for drivers, many of
which do not seem to have a solution at this time. With updating NVIDIA's GPU problems at the
moment, this driver is one of the rare Nvidia updates that isn't even a mandatory installation. Driver
updates are never meant to be a cure-all, and many patches can cause new problems to occur. We would
suggest skipping this update if you are not currently experiencing any issues with your Nvidia GPU, as
this driver is one of the rare Nvidia updates that is not a mandatory installation.

2.0 BACKGROUND
a. Nvidia Background Information, Relevant Facts and Objective or Problem
Nvidia Corporation is an American technology company specializing in the production of
graphics processing units (GPUs) for gaming, data centre and professional markets. Founded in 1993,
Nvidia is headquartered in Santa Clara, California, and does business in more than 40 countries around
the world. Nvidia products are used in a variety of applications, including gaming, artificial intelligence,
virtual reality, and autonomous vehicles. In recent years, the company has been at the forefront of the
development of deep learning and machine technology, which is becoming increasingly important in
the technology industry.

One of the biggest problems facing Nvidia is the ongoing competition from other GPU
manufacturers, such as AMD and Intel. The company has also faced criticism in the past for its pricing
strategy, which some see as aggressive. Despite these challenges, Nvidia continued to grow and expand
its reach in the technology industry. The company's revenue has increased significantly in recent years,
largely due to growth in the gaming and data centre markets. Another important goal for Nvidia is to
continue to lead in the development of artificial intelligence and machine learning technology. The
company has invested heavily in these areas in recent years and has established partnerships with
leading companies and technology companies to promote the development of these technologies.

b. Researched the Problem or Objective in the Nvidia Company

One of the main challenges facing Nvidia is the fierce competition in the GPU market. The
company competes with major players such as AMD and Intel, who are also investing heavily in GPU
development. In recent years, AMD has gained market share with its Radeon GPUs, which are often
used in high-end gaming PCs and data centres. Another challenge facing Nvidia is the criticism of its
pricing strategy, which is seen as aggressive and controlling the market instead of being innovative.
This led to a negative perception of the company among some consumers and industry analysts.

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 Despite these challenges, Nvidia remains a leader in the development of deep learning and
machine technology, which is becoming increasingly important in the technology industry. The
company has established partnerships with large technology companies such as Microsoft, Amazon and
IBM to promote the development of these technologies and expand their reach. To address the
challenges of competition and pricing, Nvidia is focused on expanding its product portfolio and
investing in research and development to drive innovation. The company also wants to diversify its
revenue beyond the gaming and data centre markets by expanding into new areas such as self-driving
cars and healthcare. In general, Nvidia's main goal is to maintain leadership in the GPU market and
continue to drive innovation in key technology areas such as deep learning and machine learning. By
solving the problems related to competition and pricing and continuing to invest in R & D, the company
can continue to grow and expand its reach in the technology industry.

3.0 EVOLUTION OF THE COMPANY

a. NVIDIA Competitor
When Jensen Huang and his two partners founded NVIDIA in 1993, the graphics chip industry
had many more rivals than the CPU business, which had only two competitors in the gaming market:
ATI Technologies, MATROX S3, Chips & Technology, and 3DFX. Apart from ATI, which was
purchased by AMD in 2006, NVIDIA destroyed all of them. Since then, NVIDIA has switched its
attention to delivering the same technology used to render video games in 4k pixel resolution to power
supercomputers, high-performance computing (HPC) in the workplace, and artificial intelligence (AI).
NVIDIA recognized that the GPU's nature as a floating-point math co-processor with thousands of
parallel cores lends itself very well to HPC and AI computing.

NVIDIA now acts differently than previous chip behemoths in that it competes with its OEM
partners and has caused at least one public outrage. AMD and Intel appear to be the latest competitors
for NVIDIA, with AMD revitalizing their GPU technology, Instinct. Meanwhile, Intel appears to be on
the right path with its XE GPU architecture, which will be included in the next Ponte VECCHIO
enterprise GPU. Nonetheless, NVIDIA's dominance in the GPU technology market can be attributed to
extensive course correction with the following generation of silicon. In the case of Artificial Intelligence
(AI) technology, the AI boom could be a double-edged sword for NVIDIA as AI becomes increasingly
relevant. The rapid advancement of technology may prompt businesses to develop their own chips in
an effort to save costs and enhance competition for NVIDIA. New U.S. chip facilities are expected to
start operating in 2024 thanks to businesses like Intel Corporation (INTC) and TSM; Micron
Technology Inc. (MU) and others have also made significant investment plans public. Intel has also
stated that it will expand its capacity, joining Google.

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b. Nvidia Robotics/AI Value Chain
The demand for AI technology is expanding as businesses become more data-driven, which is
driving change in every industry throughout the globe. Today, NVIDIA unveiled a wave of cutting-
edge AI research that will help designers and creators realise their visions. NVIDIA researchers
regularly share their innovations with developers on GitHub and incorporate them into their products,
such as the NVIDIA Omni verse platforms for creating and running metaverse applications and the just-
announced NVIDIA Picasso foundry for bespoke generative AI models for visual design.

Additionally, a research article on the early access release of NeuralVDB, an AI-enabled data
compression method, as well as additional information on the neural material research that was
displayed at the most recent NVIDIA GTC keynote, are being announced. NVIDIA DGX H100 systems
are being used as artificial intelligence factories by customers from Japan to Ecuador and Sweden to
create intelligence. NVIDIA Base Command, a set of tools for accelerating computing, storage, and
network infrastructure and optimising AI workloads, powers DGX H100 systems. NVIDIA Base
Command, a programme that speeds up network, storage, and computing infrastructure and optimises
AI workloads, powers DGX H100 systems.

They also include NVIDIA AI Enterprise, software that streamlines the creation and
implementation of generative AI, computer vision, and other technologies. Efficiency and excellent
performance are both features of the NVIDIA DGX platform. The DGX H100 generation outperforms
the DGX A100 generation in terms of kilowatts per petaflop. In NVIDIA's global partners, DGX H100
systems, DGX PODs, and DGX SuperPODs are available because generative safety is a major concern
in the business, NVIDIA created NeMo Guardrails to operate with all LLMs, including OpenAI's Chat
GPT NeMo enables developers to align LLM-powered apps to be secure and stay within a company's
domains of expertise. NeMo Guardrails enables developers to create three different types of boundaries:
Topical guardrails, Safety guardrails, and Security guardrails. It is safe to assume that NVIDIA
collaborates with organizations working on AI across numerous industries, therefore the business model
is divided into two segments: graphics and compute and networking. Thus, in its two segments,
NVIDIA generates revenue through product sales, which include hardware and systems, license and
development agreements, software licensing, and cloud services.

c. Nvidia Company Competency

Along with Meta, Google, and Amazon, NVIDIA may be the best-positioned company to contribute
to the growth of the metaverse. NVIDIA's core competency is the development of powerful graphics
hardware with chips capable of parallelizing massive calculations, allowing massive metaverse projects
to run. The metaverse is described as the internet's inevitable evolution. It examines where this nascent
technological revolution is now and where it is headed. To put it another way, the metaverse is a catch-

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all term for collaborative, online, open-design environments. These kinds of environments are nothing
new; people have been meeting, interacting, and creating content in them for decades.

When NVIDIA created Omniverse and combined the hardware with a full stack of developer
software, it opened the door for the metaverse to expand in new directions. The NVIDIA Omniverse
provides AI in the stack as well as the hardware to run AI. More importantly, because Omniverse is
software agnostic in many ways, major players such as Amazon, Meta, and Google, which have much
larger AI units but perhaps not the same level of graphics, will be able to use it to drive significant
structural improvements in their own metaverse projects.

d. Impact of AI on Nvidia competitiveness (VRIO)

NVIDIA employs a platform strategy to expand in the markets of gaming, professional
visualization, datacenter, and automotive. For its target markets, it is critical to provide a complete
computing solution rather than just a chipset or software. The strategic analysis resource is based on the
assumption that strategic resources can provide Elemental Technologies, with the opportunity to build
a sustainable competitive advantage over its industry competitors. This long-term competitive
advantage can help Elemental Technologies achieve above-average profits in the industry while
mitigating competitive pressures.

Value of Resources (V)

A resource or capability is valuable to NVIDIA because it enables NVIDIA to capitalise on
opportunities or mitigate threats that emerge from both the micro and macro business environments. If
a resource does not allow Nvidia to mitigate threats or capitalise on opportunities, it does not contribute
significantly to Nvidia's long-term competitive advantage.

Rareness of the resources (R)

In the industry in which Nvidia operates, a number of competitors control valuable resources.
As a result, valuable resources by themselves do not provide a long-term competitive advantage. Nvidia
requires scarce resources to compete in the industry, such as the ability to attract talent in various local
and global markets, as it attracts firm growth, empowers the company's stability, and provides a strong
competitive advantage. Nvidia will be unable to compete successfully in the market if it lacks the
industry's rare resources.

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Imitation Risk (I)
A valuable and rare resource can provide Nvidia with a competitive advantage for a limited
time because all competitors will try to imitate or replicate that resource. Nvidia must establish a
leadership vision for their company in order to lead and control technology firms in the future. As a
result, Nvidia's competitors cannot imitate the idea or vision. If the resource is difficult for competitors
to imitate, a sustained competitive advantage emerges. Nvidia can achieve inimitability by innovating
on the product side, reducing service delivery pain points, and having an effective post-sales servicing
strategy.

Organizational Competence (O)

Even if Nvidia possesses all of the valuable resources that are both rare and difficult to replicate,
this will not result in a sustainable competitive advantage. The ability to exploit resources through
organizational capabilities, expertise, and structure is critical to developing a sustainable competitive
advantage. If Nvidia is not organized around its strengths, it will be unable to fully utilize all of its
resources.

4.0 CONCLUSION
The ability of a computer programmed or machine to think, learn, and act without being explicitly
programmed with directives is the essence of artificial intelligence (AI). AI can be defined as the
creation of computer systems capable of carrying out tasks independently, consuming and analysing
massive amounts of data, then identifying patterns in that data. The broad and expanding field of AI
research is always focused on creating machines that can execute activities that would otherwise require
human intelligence, but at speeds that are faster than those of any one person or group. Because of this,
AI is viewed as both disruptive and profoundly transformative.

The capability of AI systems to genuinely learn from experiences or discover patterns in data, and
to adapt on its own when fresh inputs and data are given into these systems, is a crucial advantage. With
the help of this self-learning, AI systems can complete a staggering array of tasks, such as image
recognition, speech recognition for natural language, language translation, crop yield forecasting,
diagnostics, navigation, loan risk analysis, and countless other use cases.

Stronger research and development capabilities at NVIDIA enable the business to fund more
initiatives that will result in new products. In addition, NVIDIA's Drive PX2 solution makes it a pioneer
in autonomous vehicle technology.

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 With its AI product, the Pascal GPU architecture, NVIDIA is ready to take the GPU market to new
heights and markets. Deep Neural Networks (DNN) were the focus of Pascal's architecture, and Pascal
is ten times faster than Maxwell at processing Deep Learning (DL) Tera-Ops.

Through the diversity of its products, the company employs a go-to marketing approach that enables
it to make up for any potential income loss caused by low demand. NVIDIA's success has been largely
attributed to alliances with eminent businesses like Intel and Facebook.

NVIDIA is now the dominant player in the semiconductor market during the AI era because to its
recent $40 billion acquisition of Arm Holdings. The acquisition will increase its lead over current rivals
and create fresh domestic and international opportunities. It's conceivable that this breakthrough will
make the company's competitive edge stronger.

Its high brand awareness, product innovation, strategic collaborations, reliable sales and distribution
channels, and talent acquisition and management all contribute to NVIDIA's competitive advantage.
The company's dedication to innovation has enabled it to rule the gaming sector and penetrate other
areas like artificial intelligence and driverless vehicles. Strong collaborations between NVIDIA and
other IT firms have also opened up new client and market opportunities. Some of the top talent in the
technology business has been drawn to and retained by the company thanks to its talent acquisition and
management tactics. NVIDIA will undoubtedly continue to invest in initiatives that enable it to maintain
its competitiveness and satisfy the changing needs of its customers as the technology industry develops.