¶ … Computer Hardware Industry: Marketing and Advertising Strategies
Within this research paper, an overview will be provided of marketing and advertising strategies utilized within the computer hardware industry. For the purposes of accomplishing this aim, the strategies used by Gateway, Dell, and Hewlett Packard will be examined. As each company is analyzed, comparisons and contrasts will be made with strategies used by the competitors.
Gateway
According to Fikes (2003), Gateway Inc., once famous for its incorporation of cows within its marketing put its famous cow out to pasture last year and repackaged itself as the hub of digital technologies from cameras to computers to plasma televisions and MP3 players. With the company's struggle to maintain itself within the top three in the computer hardware industry, Gateway hopes that its new efforts will lead to an increase in loyalty on the part of customers, resulting in increased profits and the potential for ongoing sustainability.
As explained by Kelly (2002), new marketing efforts by Gateway have emerged after persistent evidence of recent and ongoing recent downward trends impacting profitability. According to Kelly, while the company took in $992 million in 2002's first quarter, it also evidenced a net loss of $123 million. As compared to Dell's success in selling 4.5 million computers during the first quarter of 2002, Gateway shipped 645,000. As well, as reported by Kelly, since 2001, Gateway has faced ongoing employees cuts, resulting in the company's having to let go of approximately 14, 000 between 2001 and 2002.
The new retail store marketing strategy to be utilized will take place within Gateway's 272 retail stores located throughout the U.S. (Fikes, 2003). Gateway hopes that old-fashioned foot traffic and superior in-store customer services and products will bring about enough changes to aid in turning the company around. As well, it is hoped that the implementation of marketing strategies focused on diversification of products and revenue streams will further aid the company in pulling itself up out of its' more recent financial slump (Fikes, 2003). Fikes reported that while some analysts are doubtful as to the degree to which...
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This continues the cycle of relying on production efficiencies and build-to-order strategies as an attempt to break the cycle of disruptive innovations (Ervolina, Ettl, Lee, Peters, 2009). All of these factors lead to a task-based analysis of the computer peripherals market that continue to illustrate how fragmented and highly cost-driven it has become. Figure 1 shows the market share of the computer peripherals industry from a product standpoint. Computer monitors
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