Gateway And Dell Offer example essay topic

Computers are the future whether we like it or not. Some people dislike computers, because of the complications it takes to understand the basics. Computers are not exactly the easiest tools to work with, but they are the most rewarding, and they are the future. From my understanding Gateway and Dell are the two major competitors in the computer industry today. These two competitors have significant differences in their mission statements as well as their visions. The following vision and mission statement best state the core of Gateway, which has led to its great success.

It's vision is to be the leading marketer of personal computer products in the world. And it's mission is to profitably grow their business faster than the competition by better understanding and serving the desires of their customers and aggressively marketing the highest value directly to their chosen markets. The company was formed for one purpose, to offer. They want people to have choices, a nice selection, good prices and a staff with a vast knowledge. On the other hand, In Dell's mission statement it says, "Dell wants to be the most successful computer company in the world at delivering the best customer experience in markets we serve.

In doing so, Dell will meet customer expectations of:" Highest quality, leading technology, competitive pricing, individual and company accountability, best-in-class service and support, flexible customization capability, superior corporate citizenship, and financial stability. Gateway and Dell offer most of the same product line. Gateway provides products and services to the small and medium business with local sales, installation, and support - no other major PC vendor offers the local presence and personalized approach that Gateway does. Dell sells a range of personal computers, laptop computers, enterprise and workgroup servers, storage solutions and graphics workstations direct to business, education, the government and consumers, bypassing the traditional distribution channel. Dell is expanding services such as its Web site (which processes half of the company's transactions), online business consulting, and its Dell Ventures private investment arm. As for their pricing strategy, Dell recently announced for the corporate market, the company has introduced a number of financial incentives that allow small and medium sized businesses to purchase product for delivery before July 1 while still enjoying cost savings.

And as for Gateway, Pricing has been a tough issue for Gateway, but it wants to hold on to the past -- specifically, the low PC prices of 2001 and 2002 -- to better its future. So far, at least, Gateway appears to have reached its goal. Many of its PCs are now priced lower than those from Dell Computer, before rebates and special offers, but still it's new prices are quite competitive. But Dell had been the price leader until earlier this year, when it switched from cutting prices to holding the line on them. Dell's strategic advantage is either low cost or product differentiation. I believe that Dell has continued to grow in the market by doing both.

They have provided and will continue to provide the lowest overall cost to their customers, and since their cost structure is less than half of their competitors, clearly they can sustain their advantaged pricing. They have also offered superior direct customer relationships. Further, I believe the Internet provides Dell the opportunity to not only maintain its cost and service advantages but also extend them. On the other hand, I can think of only one advantage that Gateway has that other companies don't is its 300 Gateway Country stores. As far as good corporate citizenship is concerned, Gateway's effort is not pure cash.

The Show Your Spots program rewards employees who, on their own time, volunteer in the community. Gateway tracks those efforts and rewards employees with prizes as small as a T-shirt to as large as a big-screen television. Employees can use e-mail and other methods to spread the word about charitable activities in need of a hand. Also, following the completion of the 2002 Olympic Winter Games in Salt Lake City, Gateway will donate up to 4,500 computers. Dell's giving strategy includes targeted grant programs through the Dell Foundation, a heavy focus on education by the corporation, and, in particular, technology and Internet literacy and access. A lot of computer manufactures, software developers, and Internet service providers may be asking themselves questions.

They face a tough business environment, where each personal computer seems as powerful as the next. It takes more than just a bundle of promises or low prices to get customers to value personal computers these days.