Gateway's Strategic Analysis Gateway was founded in 1985 and went public in 1993 (NYSE: GTW). During the company's initial start up, Gateway developed and implemented a customer-focused growth strategy. Gateway's customer-focused strategy has been the driving force behind the company's success in the personal computer market. With the rapid change in technology and increased competition, Gateway can no longer depend on consumer loyalty in the PC market. Today, Gateway has expanded their client-relationship strategy beyond the traditional PC market and has developed a new customer based strategy, termed "beyond-the-box". The "beyond-the-box" strategy has four key initiatives, which include training, ISP expansion, increased web activity, and better access to products through the Gateway Country stores. The overall intent is to provide consumers with a "fully bundled package of products and services designed to meet each of its customers technology needs" (investor.gateway.com).On the company's corporate level, Gateway's management realized that they must move away from their unilateral strategy, and form strategic alliances to help strengthen the company's "beyond-the-box" approach. By forming strategic alliances with companies such as Office Max, Gateway expects to enhance their already successful "multi-channel distribution model" (investor.gateway.com). Through this alliance a Gateway country store will be placed in all Office Max retail outlets. In addition, Gateway has begun vertical movement within the industry by forming strategic alliances with companies such as Sun Microsystems, esoft, and AOL. This strategic move will prove beneficial in helping Gateway achieve their target of 40% non-system revenue in the coming years.STRATEGIC ANALYSISWith technology changing at exponential rates, and increasing pressure from competitors, Gateway's "beyond-the-box" strategy should provide the necessary elements to attain their growth goal...
