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ECT News Community   »   E-Commerce Times Talkback   »   Re: Why Is Dell Up and Gateway Down?



Re: Why Is Dell Up and Gateway Down?
Posted by: Tiernan Ray 2003-02-04 07:50:52
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Nearly 20 years ago, two guys set up mail-order businesses, one from his dorm room, the other from a barn in South Dakota. Dell had a paper route and rooted for the Texas Longhorns; Waitt had a pony tail. Fast forward to today. Michael Dell's eponymous company has annual sales of more than $30 billion and $2 billion in profits. Ted Waitt's Gateway has roughly $4 billion in annual sales and a net loss in the tens of millions. What did Dell do right, and what did Gateway do wrong? And will Dell's winning formula continue to serve it well in a changed PC marketplace?


Re: Why Is Dell Up and Gateway Down?
Posted by: onsite 2003-04-17 23:14:04 In reply to: Tiernan Ray
Having worked with both Dell and Gateway machines and customers for a number of years, I have seen a definite divide between the way each company does business. Dell machines have become more dependable over the years, while gateway PCs are becoming less and less reliable as premium prices are charged for generic off-brand components. The biggest difference, though, is in the area of customer service. If you drop your laptop and break it, Dell replaces it. No hassle, no questions. Gateway, on the other hand, has become notorious for giving customers the run-around on their "in-home" service that is supposed to be included in the warranty. I had one customer that was outraged because he had paid for "in-home" service, and Gateway shipped him a replacement modem card and called him to talk him through the repair! That is absolutely stupid. You can't compete with anyone when you treat your customers like that. I generally tell my customers to avoid Gateway at any cost, when several years ago I would recommend them. You can look at the stats and trends and formulate a few good causes for Dell's rise and Gateway's decline, but just talk to the end users and the real reasons become crystal clear. If the customers aren't happy, they will buy from someone else. Period.

Re: Why Is Dell Up and Gateway Down?
Posted by: TonyMarie 2003-02-05 08:48:59 In reply to: Tiernan Ray
From my favorite computer repair guy I learned about how hard it was to add 3d party hardware to a GATEWAY PC. When you buy their proprietary product, you get all the limitations that go with it, without the advantages of buying from the innovator. DELL, on the other hand, sells standard PCs with open architectures that will accept unique add-in cards. That, along with a machine that is robust, reliable and a good value, is what drives Dell's success.

Re: Why Is Dell Up and Gateway Down?
Posted by: doitman 2003-02-05 05:24:07 In reply to: Tiernan Ray
I do not think that Dell's adv. in the corp. market is due to the R&D budget of USD 400 mio. - that's peanuts compared with IBM and HP! Focus, standard technology and customers' increased price awareness are the drivers.

Re: Why Is Dell Up and Gateway Down?
Posted by: artagel 2003-02-04 17:57:02 In reply to: Tiernan Ray
Here's an intriguing angle on Dell that I haven't seen anyone examine. Have you looked at the Refurbished Dells lately? There are quite a few laptops that are overpriced because they are couple of generations behind. Multiple PIII 1.1Ghz for $1500, for instance.. Don't these count as stagnant inventory, or even overvalued assets?

Re: Why Is Dell Up and Gateway Down?
Posted by: JuggerNaut 2003-02-04 07:53:14 In reply to: Tiernan Ray
That's something I think we all want to know... what's so special about either company?! They both build the same crap!!
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