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Nvidia GeForce Partner Program has a Good Point, but Crosses a Serious Line

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Posted March 9, 2018 by Josh Jackson in Gaming

If you saw the news, you might think Nvidia dropped an atomic bomb on the graphics card industry. Anti-consumer practices are serious business and the GeForce Partner Program (GPP) is beginning to show some huge indications that it’s a pretty shady move from a company that has no need to pull these kind of tactics. Some sites might even claim they are falling on the proverbial sword to announce this, yet revealing the nefarious plans of big business is worth it for the greater good. In reality though, Nvidia is making a move that actually makes a lot of sense for branding, but the reward/consequence part of it is where GPP goes too far.

For starters, any company that uses the word “Transparency” a gajillion times to describe a new program needs to really reconsider their word choice. Nvidia used this term many times in their official statement about GPP and that was an instant red flag. What the heck does transparency even mean in the graphics card world!?! The word that points us in the direction Nvidia is really trying to get to is “Consistent.” It’s easy to start hating on a company as soon as we hear they are involved in shady practices, but sometimes it’s important to look for an important issue the company is facing. Branding is perhaps the MOST integral part of a company’s existence in the computer industry and as competition ramps up, branding can be the make or break point of succeeding. Nvidia and AMD have their own branding, but once the AIB partners make a gaming design, the branding is blurred across both companies for one series of graphics card. It’s extremely likely that the biggest thing Nvidia wants is a clear brand dedicated to their GPUs, with AMD GPUs having their own gaming brands to associate with their products.

Here’s where we start approaching the line of Anti-consumer practices though. Who deserves to get the already established brand? For instance, Gigabyte as a company would likely get to make both Nvidia and AMD reference graphic cards. Their Aorus branding on the other hand, would likely have to be dedicated to Nvidia GPUs, only if Gigabyte joined GPP. I don’t think this means that custom graphics cards couldn’t be made for AMD, but I think Nvidia intends a company like Gigabyte to come up with a second gaming brand to further separate the AMD cards from the GeForce ones. My guess is this is what Nvidia intends by the term “transparency,” but as you might have already guessed, there would be a whole new level of confusion with a ridiculous amount of brands to sort through. The other assumption relating to GPP as well is that Nvidia would naturally lay claim to the already established gaming brands since they already have agreements with the companies. This would be a huge blow to AMD and Intel because it would have a partial effect of forcing them to start over with new brands, in spite of being established for decades.

Now that we’ve seen the approach to the shady part of GPP, let’s go to the point where Nvidia seems to be crossing the line entirely for anti-consumer practices. A company can decide to not participate in the program, but Nvidia looks like they’ll punish those manufacturers pretty severely. HardOCP spelled out a large list of benefits these companies will lose with Nvidia. The largest of these might be the Marketing Development Funds, which can instantly put an AIB at a huge disadvantage in competing in the market. It would be one thing if this just cut into some profits in a cut throat business world, but consumers could see their competitive options dwindle substantially as manufacturers drop out of the graphics card industry. The reality for these consequences may not end up being that severe, but the possibility seems too strong to ignore. Companies that have any dealings with Nvidia almost have no choice but to sign up for GPP just to remain relevant and AMD will have no choice but watch as partners drop their GPUs from gaming brands, short of a lawsuit.

That said, Nvidia has one really solid option that would allow them to keep GPP mostly untouched, be fair to consumers, and take the high road in the computer industry. If they called companies that signed up for the program to have to make a completely new gaming brand for green team GPUs, that would keep the market more than fair for AMD and Intel, yet I’d dare say that Nvidia would benefit the most in the long run. Nvidia still has around 70% market share in the graphics card market. New AIB gaming brands would hardly affect GeForce cards in any serious measure since the cards own the performance crowns in the gaming market. The move could genuinely be transparent since what company would decide NOT to talk about their new brand? AMD and Intel would have no legal legs to stand on since they would get access to established brands like ROG and Aorus, which would make it very hard to make a case any judge could take seriously. Ultimately, Nvidia would brand themselves as a company full of integrity, which I believe would translate into more market dominance since a large portion of consumers care about these things. The only question is would Nvidia be so bold?

 

Nvidia proves that the best type of success is the mutual success that can be achieved through partnership. There are quite a few types of partners that help to the foundation of the organizational structure as well as the operations of the business. We’ll be taking a look at Nvidia from a general perspective and how they have built up their success over the years. We shall take into consideration all the marketing factors that have been used over a span of 20 years throughout the intense period of growth for not only the firm itself but also the industry. If you plan to use a similar marketing strategy make sure that you end up choosing the right affiliate network.

Key Partners

  • Authorized board partners
  • Service delivery partner: professional services
  • Cloud service providers
  • Distributors
  • Solution advisor
  • eTailers
  • Solutions integration partner
  • Inception Partners
  • OEMs (original equipment manufacturers)
  • Solution providers (VARs)
  • Retailers
  • System builders (Mostly private businesses)

Nvidia is gaining a lot of knowledge about the market as well as predictions from experts. Most of the partners do analyses on the market as well as potential investments that Nvidia could make to maximize their financial gain as well as acquire an advantage in the market.

Key Activities

The manufacturing of GPUs and distribution is one of the main and most common activities. After that, the Distribution channels have links to well-known retailers. Nvidia used to allow consumers to purchase directly from them but it was an inefficient process. There is more than a handful of retailers that Nvidia recommends as they have a good partnership with them, therefore, they do entrust that they will provide Nvidia’s customer base with good services.

A high revenue stream is found within the organization. Being a very profitable industry in a booming market gives Nvidia security in the market for them to concentrate on other projects rather than full commitment to the maximization of the profit.

At the same time, Nvidia is trying to penetrate the self-driving cars market by working in partnership with Intel to create a better system for the future of driverless cars. Their supercomputers, algorithms and innovative technology overall can put them ahead of many tech companies. They have also been on the tech market for a while and they are seen as very important and respect members because of the power they have behind them.

Key Resources

Being an international corporation with offices in over 14 countries, Nvidia shows the type of human resources required to control the demand that is on the market. As there is high demand there is not much need for deposits, as the stock will fly out mostly directly to the distributor rather than the warehouse.

This is a more efficient process that saves not only the cost of distribution but also the time, which is also a very valuable asset. It is very important to maintain a good relationship with the customer; therefore, Nvidia is making sure that they offer the best support as well as services to their consumers.

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Nvidia Geforce GTX 1070 series GPU

Every week they have updates on their GPU driver software to provide the best possible performance to the consumer. Even if you were to get an older generation GPU, Nvidia will try to raise its performance and efficiency through the software they provide for free by offering such support to the customers.

They know that their products are a bit higher than the actual market price. Because of this, it’s difficult for a big part of their consumer base to maintain the purchase of newer generation GPUs, so they offer as much support as possible.

The financial resources that are generated from commerce are very good. The best thing that Nvidia is trying to provide is a variety of products to all different budgets that consumers have available, even in these hard times for consumers where the price is sky high.

Value Proposition

The two points that are the most vital are customer satisfaction and social impact. Most businesses and the operations that they undergo must offer satisfaction to the customer, but sometimes this comes at the risk of some social impact.

A good percentage of customer satisfaction can be found in the product delivery segment, as shown above. Being the second-last on the value chain map, we have a need to satisfy with a good service provided by the retailers that Nvidia is partnered with and then with the quality and performance of the product itself. In the quality of the product, we cofound with the product design segment, which makes it appealing to the consumer as well as more attractive than what the competitors have to present on the market.

The performance goes all into the workforce segment which is the start of production. The workforce at Nvidia has reached the innovative point of working smart rather than hard, as it is more efficient. But at the same time, we must respect some values as well as the trends that are being followed on the market, which go toward the customer’s satisfaction.

https://www.hardocp.com/article/2018/03/08/geforce_partner_program_impacts_consumer_choice



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