MEMORANDUM
Gateway
is a computer company based in San Diego that has many different options
available for customers. As someone that doesn't know a lot about
computers, this would be a good company to find a computer for a student
like me. There are, for example, four different basic computers with
a price range given. Then, for each of those computers, a customer
can choose what kind of processor, monitor, video, how much memory, how
big of a hard drive and if there is a CD/DVD player included. Laptop
portable computers are also available and similar choices can be made on
what kind the customer wants. In addition to computers, software,
printers, digital cameras, scanners, monitors, drives and accessories are
available. Another unique option for Gateway customers is the option
of buying a less expensive remanufactured computer. Computers that
are returned to Gateway for any reason are thoroughly tested and sold in
factory outlet stores near Gateway's manufacturing plants. Gateway
also offers solutions for businesses, education and government.
Gateway to slow down PC sales and pursue
other options:
Gateway is already anticipating the inevitable:
the slowdown of PC sales. In late February, they announced several
corporate partnerships to create new products and services. Through
e-commerce, Internet access services, Web sites and training, Gateway wants
to gather revenues from both consumers and corporate customers. An
analyst named Ashok Kumar thinks that computer sales will go down because
people will switch to accessing the Internet through improved cell phones,
Palms and Web boxes. To accomplish these new goals, Gateway announced
partnerships with OfficeMax, eSoft and Sun Microsystems. Through
OfficeMax,
Gateway will rent space and set up stores-within-a-store. Through
eSoft, Gateway will be able to manage
networks, host Web sites and provide other services. Finally through
Sun Microsystems, Sun will push it's customers
to buy Gateway computers in exchange for preloading their computers with
Sun's Web-application software.
Gateway's Competitors:
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Compaq:
This company, the largest PC maker, may have the most problem will breaking
away from the mindset of only selling PC's. It is trying to go "beyond
the box" with storage capabilities and e-business services. But,
they have been experiencing disappointments lately and the CEO left.
They are going to follow Gateway's and Dell's lead by selling computers
directly to customers instead of through resellers. They have been
losing money to Dell because of this. They have a lot of trouble
to deal with, but analysts are optimistic.
-
Dell:
Through partnerships, Dell offers Internet service provider and Web-hosting
services. They have trouble pushing new products and services, because,
unlike Gateway, it mainly sells to large corporations. But, their
shares dropped when they announced that their earnings would be lower than
expected for the first quarter of 2000.
-
Hewlett-Packard:
Their PC division in doing fairly well, but it is not a high-growth area
for the company. They sell printers as well, but that is not strong
enough to bring Hewlett-Packard into the next century with all of the new
technology available.
Conclusion
Gateway is taking great initiative by realizing
that they need to change the focus of their company to go along with the
growth in the Internet. There are so many more ways to access the
Web now, and Gateway used to just focus on computers. With their
new partnerships, they will continue to raise their revenues. Their
competition has realized that they need to improve their strategies as
well, but Gateway saw this coming and made decisions earlier.
The decision making model Carnegie Model
would best describe the action taken by Gateway. The problem identification
is not as easy because they don't know exactly what would be the best decision
to make. Some people seemed to think that they should stay the same,
but others know that change needs to occur. They are bargaining
when they are making partnerships with other companies. In exchange
for Sun to persuade customers to buy Gateway computers, they bargained
that they would put Sun's software on their computers. Because of
all of the steps they have taken, the problem solution should be relatively
easy. They know what they need to do, now all they have to do is
watch the results.
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