Dell vs Gateway



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Code : COM0036

Year :
2004

Industry : Engineering, Electrical and Electronics

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Dell Michael Dell established Dell Computers in 1984 with an investment of $1000. Through the company, he introduced the concept of selling PCs directly to customers. The direct selling concept of Dell aimed at enabling the customer to pay a price for performance by eliminating resellers, retailers and other intermediaries. The direct model also made it possible for the customers to customize their systems according to their requirements...

Gateway Tedd Waitt started Gateway Computers, in 1985 in an Iowa farmhouse with an investment of $10,000. During the first year, he personally sold, built and shipped Gateway systems. He also took care of marketing and after sales support for the systems. The company was based on the ideology of direct marketing to the customer. Waitt was able to realize sales of $100,000 for the company in its first year...

The Road Ahead Dell, in 2003, planned to diversify into the CE market selling flat panel TVs and MP3 players through its website. "The question is, how much and how far Dell can go with it"? said Dell President, Kevin Rollins. "How many new products can Dell add to its portfolio? Where does it end? We think there's a somewhat limitless number of products and services we could get into"...

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