eway to reach a broader range of consumers within the business sector. By focusing on the business sector, Gateway believes that new customer groups will be established. Gateway's success can be attributed to their focus on a direct and personalized sales approach. The direct approach allows consumers to have a personal computer built to meet their specific needs. Utilization of this method helps Gateway keep their costs down due to little or no inventory. In addition, the direct method eliminates costly intermediaries in the sales process and passes these savings on to the clients. Though Gateway's multi-channel distribution model has been successful in supporting their direct approach. Gateway's current strategy calls for in excess of 1,000 new Country stores by the end of the year. Gateway should be cautious of expanding too rapidly to avoid losing the personal touch with their customers, and adding to the already, over-saturated market. CONCLUSIONGateway has developed a strategy that is consistent with today's market. Gateway has built growth and diversification into their strategic plan while maintaining their core philosophy of "keeping it personal, making it simple" (Gateway.com). Based on expectations of tomorrow's market, Gateway's strategic plan is structured in a way that will allow the company to move in a direction of growth through diversification. Though Gateway's strategic plan will more than likely be effective in achieving their goals, there are several external factors that could adversely affect the business. For example, if there are significant changes in economic conditions, personal computer sales will decline as with personal Internet usage. In conjunction with changes in general economic conditions, competitive factors such as reduced pricing or component shortages could adversely affect Gateway's core PC line. Overall, Gateway has developed a strategy that appears to be working in today's environment. Las...
