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Can Gateway build the resources, capabilities, and competencies to challenge Dell?
Member rating: No Rating | Words: | Submitted: Mon Jun 19 2006
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TO: Ted Waitt FROM: Jeff Feng RE: Can Gateway build the resources, capabilities, and competencies to challenge Dell? Facing slower demand for personal computers and stiff competition within the PC industry, Gateway's sales have dropped more than 50 percent over the past two years. The company generates most of its PC sales revenue in the consumer and small business segments. Gateway lags far behind Dell in sales to small businesses, government agencies, schools and healthcare companies, which comprise more than 80 percent of total revenue through B-to-B channels. As HP and IBM launch campaigns aimed at the small and medium businesses, Gateway's PC market share will be threatened further. Gateway's disadvantages are prevalent in comparison with its competitors, namely in respect to capabilities in technology and R & D. Having experienced three consecutive years of net losses, Gateway is having difficulty maintaining a long-term competitive position among the other major industry players also targeting its primary...
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