Question

In: Operations Management

What is the sweet spot Analysis for Nvidia?

What is the sweet spot Analysis for Nvidia?

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Expert Solution

The sweet spot for any business product or service provider would be defined as that balanace where the costs and benefits are equal. It is the economic situation where the supplier's profits ans customer's value are at a balance and both are satisfied.

Nvidia is a Graphic Card manufacturing company and provides the most extensive range of cards for the computer and other electronic gadgets for their purpose of graphic display. Nvidia's sweet spot could be seen in the performance of its GeForce GTX 1070 cards. The GeForce GTX 1070 offers a massive 5,45 TFLOPs of the single precision floating point performance. The same feature is achieved in a modest 150 Watt Thermal Design Power envelope and also with a single 8 pin PCIe connector. All of this is called a sweet spot for the performance being shown by the Nvidia is because of the cost which is roughly 85% of the GeForce GTX 1080 and giving a cost advantage making the price fall down between $379 to $449 depending on the custom card pricing.

Both the customers and the suppliers of the same performance analysis of the product are happy because of yhe high features and low costs offered.


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