Business Week: Business Week outlines the troubles Gateway is in and what founder and CEO Ted Waitt is trying to do to keep Gateway afloat. Selling higher margin services like PC add-ons, warranties and training courses in Gateway stores is one solution; and competing against Apple on price is the second strategy. (full story – subscription needed)
My spin:Ted didn’t ask my opinion, but I think Gateway should STOP competing against Apple. The share of Apple users who would choose between Apple or Gateway is too small to worry about and the struggle to get them is just to hard. Gateway should try to sell higher margin items. Finally Gateway should be competing head on with Dell and anyone else on price BUT ALSO use customer service and tech support as a selling point. This is a HUGE pain with customers – pre-sales/support and POST-SALES/SUPPORT!
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