Gateway Vs Dell Essay

1036 words - 4 pages

Gateway was founded in 1985 in an Iowa farmhouse and has grown into one of America's best-known brands. Gateway is the third-largest PC Company in the U.S. Gateway started out in 1991 when it introduced its distinctive cow-spotted boxes. In December 1993, it became part of the Fortune 500 and started to trade NASDAQ, a t$15.00 per share, prior to moving to the New York Stock Exchange in 1997. In March 2004, the company acquired eMachines, a PC maker, for $235 million. This took Gateway from a PC maker to a full-service technology provider with a wide range of its own products and services, such as thin TVs, digital cameras, camcorders and systems and networking products. As of July 2004, Gateway has approximately 3,400 employees.

Gateway prefers the plain talk and fair dealing way of doing business and bases on offering products directly to customers, providing them with the best value for their money and unparalleled service and support. They are devoted to treating their customer with respect and decency. Gateway was the first company to offer systems with color monitors as a standard, as well as three-year warranties and the convergence of the PC and television. Gateway today still focuses on its original objective to help people improve their lives through technology. Gateway products are offered at major retailers, over the web and phone, and through its direct and indirect sales force.

Gateway is working on international growth since a good portion of their business is done in the United States. Since the merger of Gateway and eMachines, the company has closed down all their retail stores and is focusing on internet and phone orders, which is the same as what Dell has been doing for many years now. With this merger they have also simplified their business model by going from thirty-seven Vice Presidents that report to the CEO to thirteen. Gateway's technical support staff has consistently and efficiently correctly diagnosing and fixing each problem in less than 10 minutes from the time a customer dials in and is disconnected. The acquiring of Emachines and moving all of its business online and through the telephone could potentially be a disadvantage to Dell Computers in the future. Gateway views charitable giving and employee volunteering as a responsibility, this includes support of the United Way, and their employees frequent participation in community activities. Gateway trades under the ticker symbol GTW and is currently at $5.17 per share with a volume of 3,549,900. Gateway's stock split two for one on June 16, 1997, at $67.125 for shareholders on June 2, 1997 and again on September 7, 1999, at $100.50 for shareholders on August 20, 1999. Gateway has 372 million shares outstanding with 120,000+ shareholders. Considering where the stock split and what the company is doing now in the market it does not look to be as good of a future as Gateway's website likes to portray.

Dell's commitment to customer...

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