Business Case Studies, Diversification Strategies Case Study, Gateway Computers,Managing the Transaction

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Diversification Strategies Case Study

Case Title:

Gateway Computers - Managing the Transaction

Publication Year : 2006

Authors: Mr. Philip Anil Kumar, Ms. Mridu Verma

Industry: Engineering, Electrical and Electronics


Case Code: DIS0017P

Teaching Note: Not Available

Structured Assignment: Not Available

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Gateway is the third largest computer technology company in the US. It pioneered the 'built to order' production system and direct sales model to sell computers at low costs. However, since late 2000, Gateway suffered losses and lost its place in the Fortune 500 listing. This case study discusses the causes resulting in the decline of Gateway Computers and the strategies it has adopted to make a comeback.

Pedagogical Objectives:

  • To discuss the dynamics of the US consumer electronics industry
  • To discuss the factors leading to the decline of Gateway computers
  • To discuss Gateway computers strategies to make a comeback.

Keywords : Diversification Strategies Case Study; Gateway Computers; Brand integration; Direct sales model; Built to order production system; Gateway country stores; Circuit ity; Best Buy; eMachines; Office depot; Comp USA; Platinum Edition; Gateway shield; Ultra portable notebook; Advanced logic research; Beyond the box strategy

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