¶ … Gateway Computers gives an introduction about the company and outlines the main business strategies adopted by the company. This paper also describes the company's major business decisions and what contribution it has made to enhance the use of Information Technology among its consumers.
Gateway Computers
In its seventeen years of business, Gateway Inc. has made valuable name and place in the global market of computers. Ted Waitt, founder of the company initially conceived his corporation on an Iowa cattle farm. Seventeen years later its head quarters can be found outside San Diego, California. The company was primarily founded on the ingenious idea of selling computers straight to the consumers rather than through retailers and distributors. The main aim of the company was to make to profit via abating costs of computers to consumers through a direct sales approach. In the beginning, the company acquired success but eventually suffered as its business models failed to keep stride with modifying industrial and economic throb. Now, Gateway Industry is one of the leading industries to be using the brick and mortar model as part of their business strategy. Compared to other industries that relied on e-business strategy, Gateway Computer focused on the key areas where they mastered strength and developed from what they knew best. Till now, Gateway Inc. contest with companies such as Apple and Dell.
When Gateway Inc. was founded, computers were only starting to become popular in schools, businesses and homes.
Personal computers were fast becoming part of the American culture and the needs for and benefits of a personal computer no longer required explanation nor the assistance of more highly paid, presumably better trained sales people to help consumers make a purchase decision. Apple's costly distribution system and minimum pricing requirements for resellers began to wok against the company. Gateway capitalized on the changing American culture by providing consumers with a more cost-effective way to purchase personal computers (Robert Paul, Gateway And Apple: A Tale Of Two Companies).
Hence, it can be said that Gateway Inc. made ample profits by selling computers directly to the consumers.
In the beginning Gateway's stocks chart was very similar to that of Apple's stocks chart. In the late 1990s, Gateway's stocks began to move even higher. "Gateway's rise in fortune was directly tied to the release of Windows 95 and the climb to market dominance of Microsoft's ubiquitous desktop operating system" (Robert Paul, Gateway And Apple: A Tale Of Two Companies). Gateway computers when compared to Apple computers did remarkable business but could not match the strategies deployed by the Dell computers. "Dell's focus on efficiency outpaced Gateway's efforts to sell direct to consumers while maintaining a folksy marketing charm. Dell's revenue and profits grew at an accelerated rate compared to Gateway. Dell's stock price soared at a rate that seemed to defy the laws of gravity" (Robert Paul, Gateway And Apple: A Tale Of Two Companies).
During the mid 1980s, Gateway had started to open retail stores in suburban areas. The main strategy adopted by these stores was to furnish customers with direct help and solution. They also employed their direct to customer sales model.
Gateway's management also pursued a strategy called beyond the box in an effort to grow revenue and earnings by providing other services to businesses and consumers.
The so-called beyond the box strategy was an indication that management no longer saw hardware sales as the source for future earnings growth. Dell had bested Gateway on price and manufacturing efficiency, and Gateway was turning to services as a way to maintain growth and profitability (Robert Paul, Gateway And Apple: A Tale Of Two Companies).
In 2001, as a result of tough competition, Gateway Inc. faced a number of challenges. Ted Waitt instantly attempted to reduce the corporation's cost structure and commanded that Gateway was discarding the beyond the box model in order to pay attention to the company's endeavors on attaining profits from hardware sales. This decision of Mr. Waitt caught the market, analysts and investors by surprise. "The company had close to 300 gateway Country Stores staffed by people trained to push both hardware products and "beyond the box" services. At the time that story was written, Gateway's shares were trading at a value more than six times that of today" (Robert Paul, Gateway And Apple: A Tale Of Two Companies). Ted Waitt made remarkable decisions to save his company from further losses. He changed all of his old policies and adopted new ones.
Just three years ago, Waitt's one-third stake was worth $9 billion. Now, as the company weathers a bruising industry downturn and a nasty price war with Dell
Computer Corp., the value of his shares has dwindled...
organization's marketing strategy and planning process. Gateway computer and electronics in this case will be used to present the views and facts regarding the organization's marketing strategies, their implementations and the planning process by the relative organizational authorities. The paper will broadly identify and assess their marketing strategy and planning process. The paper will consider as to how efficient their marketing process is. The external environment will be covered in
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