The Success of Gateway Computer :: GCSE Business Marketing Coursework

The Success of accession ComputerGateway 2000 was formed by Ted Waitt(CEO), in September 1985, in Sioux City, Iowa. The fraternity was founded along with Senior transgression president Mike Hammond. In 1990, as the company began to blossom it was locomote to its topical location in North Sioux City, South Dakota. They formed Gateway 2000 with one goal in mind- to offer PC buyers a logical alternative to high markups, limited choices and inadequate support, common in the sell PC market (Gateway.com 1). These two partners started exchange hardware and software to pack who owned Texas Instrument computers. The placed ads in computer related publications, selling to the end user. These two guys were the pioneers of direct-marketing in the PC industry. Finally in 1987 Ted Waitt recognized the possibility of selling fully configured computers, at good prices. This conception gave Gateway a tremendous push forward into the computer industry. In 1987 the company reported revenues of 1.5 one thousand thousand dollars, later in 1989, it jumped to an astounding 70.6 million dollars. Finally, in 1996, they jumping into the billions with 5.04 billion dollars. In 1993, Gateway became a traded company in the NASDAQ market system under the symbol GATE. Making amelioration along the way they moved to the New York Stock Exchange on May 22, 1997 and uses the symbol GTW. On June 16, 1997 the stock split. Gateway 2000 is a leash global marketer of personal computers. Although they are a leader in global marketing they have a problem with their laptop computer division. the laptop division holds one of the lowest market shares in the market. Toshiba the leader in market share holds 21.2 percent of the market, Compaq holding 15.7, IBM with 12.4, Dell with 6.1, Acer with 5.0, Packard toll with 4.4, Fujitsu with 3.4, Hitachi with 3.3, Micron with 3.2, and finally Gateway with 2.8 percent. With Gateways new and improved marketing plan, they should accession to the top over the next five years. Gateways current target market is the home PC user. They put forth virtually of their energy trying to make the customer feel comfortable with its product. They overly want the customer to feel as though they made the discipline decision buying from Gateway. This attitude will help Gateway in selling itself. They will not need to use extreme advertise because the word of mouth is the most powerful advertising tool.