Two companies offer processor and motherboard chips for desktops and laptops Intel and AMD. While their Willingness to Supply (WTS), costs, performance, and overall architecture has substantial overlaps, Intel has been dominating this industry for many years. The general perception is that Intel products are: innovative, reliable, and provide good value; hence they have higher WTP than similar AMD products.

What should be the strategic response of AMD as far as pricing and product offerings (use theory/frameworks to justify your position)?