Dell vs Gateway


Code : COM0036

Year :

Industry : Engineering, Electrical and Electronics

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Dell Computers Limited, in its 20 years of its existence, is considered as a pioneer in direct marketing. The company has always focused on improving its supply chain by reducing costs through direct selling.

Dell's mission is focused on the concept of the direct-to-market strategy. The company's direct model has become a global benchmark in supply chain management, and many other organisations worldwide have incorporated it to improve their supply chains.

Gateway Incorporated also started its business as a direct seller of computer systems. However, by the year 2000, the focus of the company shifted from 'direct marketing' to 'research and development'.

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Pedagogical Objectives:

  • To discuss the growth strategies of Dell and Gateway over time
  • To discuss how Dell's efficient and responsive supply chain enabled it to lead the market without spending too much on research and development and how weaknesses in Gateway's supply chain made it lag behind, in spite of launching numerous new products in various categories.

    Keywords : Dell Computers Limited; Michael Dell; Supply chain management; Direct marketing; Disintermediation; e-Commerce; Just-in-time; Quick ship programme; Competitive Strategies Case Study; Tedd Waitt; Gateway Computers; Cow-spotted boxes; Beyond the box; Gateway Country Stores; Research and development; Rolls Royce of laptops

    Contents :
    The Road Ahead

    Case Introduction >>

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