澳洲論文代寫:Report on Gateway’s Difficulties and Solutions ?

Report on Gateway’s Difficulties and Solutions

Table of contents
1.    Statement of Problem.. 2
2.    Situation Analysis. 2
2.1.     Analysis of Macro Environment 2
2.2.     Analysis of Micro Analysis. 2
3.    Discussion of Alternatives. 3
3.1.     Alternative One:Powerful Agency plus Mixed Image. 3
3.2.     Alternative Two: Powerful Agency plus either Folksy or Modern Image. 3
3.3.     Alternative Three:Weak Agency plus Mixed Image. 3
3.4.     Alternative Four: Weak Agency plus either Folksy or Modern Image. 3
4.    Recommendation with Supporting Rational 4
5.    Action Plan. 4
6.    Contingency Plan. 4
References. 4


1.        Statement of Problem

Gateway has pioneered in PC technology and marketing for nearly two decades. However, currently it is confronted with various difficulties. First, its revenue drops. The reasons for this situation are both internal (ineffective media communication) and external (e.g. a competitive and demanding market). Besides, usually its cooperation with agencies flopped after only a short period of time. In addition, its brand image is weakened. For instance, certain consumers respond negatively on some of its key tributes such as a technology pioneer. Gateway needs to tackle these issues before it could regain its market share and expand its revenue centre to other electronic product.

2.        Situation Analysis

Since the new millennium, the market share of Gateway continues to shrink and its revenues fluctuates; sometimes it even experiencesa net loss on its main PC business. The reasons accounted for this situation are multidimensional. This article investigates this situation from the macro- and micro-perspectives.

2.1.  Analysis of Macro Environment

Compared with the past, the market of consumer electronics today is much more competitive with more “clever” customers who have a high expectation on IT products. As a result, customers choose products and brands that impress them. The dilemma resides in the fact that such a competitive market is difficult for a company to differentiate its products, and yet it strongly calls for an impressive brand image (Berndt & Rappaport, 2001). For instance, no matter what brand of a certain PC model– HP, Sony, Apple or Gateway, this computer actually performs similar task for its users. This reasoning can be observed in the rapid growth of the market share of Dell. Dell does not provide revolutionary, innovative or differentiated product. Its success is founded for the introduction of modern logistic procedures, limited customization, and hence a low price strategy (Chu, Chintagunta & Vilcassim, 2007). Therefore, if products hardly make a difference in terms of function, a company like Gatewayneeds to consider other tributes when communicating its value to its consumers so that it can stand out in this era.

2.2.  Analysis of Micro Analysis

In addition to a competitive market, Gateway is also faced with difficulties in communicating its value to users. This good thing is Gateway sticks to its original value proposition. It has always been trying to increase people’s living standing, and offering best-quality service which justifies the price. This strong corporate culture leads to its success in 1990s. Yet once an organizational culture is formed, it has a tendency to resist changes (Rashid, Sambasivan & Rahman, 2004). For Gateway, it has stuck to its Midwestern and folksy culture since the birth of this corporate. However, as time goes by, it might need to incorporate accurate modern concept to fully evacuate its charm.
Despite of its adherence to its vision, in practice Gateway does not possess a stable relationship with its advertising agencies. The founder of Gateway, Ted Waitt, has a strong influence on the production of ads, even when the duty does not fall on in-house groups. Partly for this reason, Gateway switches among agencies frequently, which certainly reduces the stability of communicative style.
Moreover, as the introduction of various media in advertising, Gateway cannot have a clear separation of duties among different groups, such as the outside groups and in-house departments. All these issues need to be addressed before Gateway can communicate a persuasive, impressive and sympathetic brand image.

3.        Discussion of Alternatives

To tackle with the aforementioned issues, three alternative are presented under following considerations: first, whether the agency has a decisive say on the ads in various media; second, what image Gateway desires to demonstrate – a folksy and Midwestern style, a modern and hip style, or the combination of these two styles.

3.1.  Alternative One:Powerful Agency plus Mixed Image

Under the context that Gateway continues to cooperate with the Arnell Group, an agency which the Gateway’s vice president of consumer marketing is familiarizedwith, Gateway can continue to communicate a mixed corporate image. The benefit of this strategy is that the relationship between these two groups is predictable and reliable, for which reason it is more likely for Gateway to authorize the agency to handle its publicity and advertising. A durable partnership in business contributes to the consistent image of the product (Gray & Balmer, 1998). In this sense, this strategy is useful to build a clear and differentiated brand image. However, the risk exists that the agency cannot fully demonstrate the messages from Gateway, perhaps due to the principal-agent problems or the intervening individual will of Gateway’s founder.

3.2.  Alternative Two: Powerful Agency plus either Folksy or Modern Image

The advantage of this alternative mainly lies in its obvious theme. An ad with one distinct theme and a simple logical line is much more likely to communicate its intent clearly to its targeted audience than that with multiple themes (Lange & Dahlén, 2003). However, fordisadvantages - just like what the former passage mentions, this powerful agency is vulnerable to the principal-agent issues. In addition, lack of either the folksy or modern theme in marketing communication might actually lead to the blur of brand image. After all, many other brands also show their contemporary tributes.

3.3.  Alternative Three:Weak Agency plus Mixed Image

Under this scenario, advertising tasks are attributed among agencies and in-house departments so that every group can specialize in certain media. Regardless of the theme, the benefit of this alternative is saving cost, and this result is meaningful in a competitive market with low marginal profit. The disadvantage lies in that it increases the possibility that these groups produce inconsistent, confusing or even conflicting brand images.

3.4.  Alternative Four: Weak Agency plus either Folksy or Modern Image

Just as previous passages mention, this alternative enjoys financial benefits. Yet the division of work and cooperation of groups might create difficulties. In addition, though it attempts to create a decisively distinct brand image in terms of theme, it might make Gateway much more ordinary.

4.        Recommendation with Supporting Rational

The first alterativeis preferable for two reasons. First, proper specialization of labour increases efficiency. Media and advertising channels are increasing. Gateway should leave them to experts while it makes sure of its product quality and the core message that will be communicated.The second reason to support the choice of the alternative one is the consideration of sustainability. In a competitive and fast evolving market, survival is prior to other organizational goals. Therefore, a corporate should have a long-term strategy. Strategic management has a strong influence on the mid- and long-term development of a corporate through its directional framework (Chakravarthy, 1982). For Gateway, itcan choose a weak agency in for financial strength; yet this cannot turn into future benefits, because Gateway tends to lose its characteristics and become an ordinary corporate instead of a pioneer for its users. This price is too expensive to be afforded.

5.        Action Plan

Australia:Report on Gateway’s Difficulties and Solutions  代寫
To optimize the effect of the chosen alternative, Gateway should make sure the following things. First, Gateway needs to ensure that its marketing objectives are fully understood by the agency, represented by Leo Burnett. Though the Arnell Group is not Ted Waitt’s favourite boutique and unique agencies, he needs to give the freedom to the agency. Second, both sides should sign upa contract which specifies the responsibility for each party and includes solution to unexpected conflicts. Third, Gateway or the agency should have plans in monitoring the impact of the ads.

6.        Contingency Plan

Though it is anticipated that such strategy might help cheer up the stagnant market performance of Gateway, the reality might tell another story. If customers have a negative perception about the ads or if its revenues continues to decline for consecutive months (the figure would be jointly decided), a timely market research should be conducted to find out the problems. This research aims to discover in what aspectsconsumers do not recognize the brand or its products. In short, rescue plan should be put forward and implemented quickly, because this digital market is fast changing, and any delay might ruin a company.


Australia:Report on Gateway’s Difficulties and Solutions  代寫
Berndt, E.R. & Rappaport, N.J., 2001. Price and quality of desktop and mobile personal computers: A quarter-century historical overview. American Economic Review, 91(2), 268-273.
Chakravarthy, B.S., 1982. Adaptation: A Promising metaphor for strategic management. Academy of Management Review, 7(1), 35-44.
Chu, J., Chintagunta, P.K. & Vilcassim, N.J., 2007. Assessing the economic value of distribution channels: An application to the personal computer industry. Journal of Marketing Research, 44(1), p.29-41.
Gray, E.R. & Balmer, J.M.T., 1998. Managing Corporate Image and Corporate Reputation. Long Range Planning, 31(5), 695-702.
Lange, F. & Dahlén, M., 2003. Let’s be strange: Brand familiarity and ad-brand incongruency. Journal of Product & Brand Management, 12(7), 449-461.
Rashid, M.Z.A., Sambasivan, M. & Rahman, A.A., 2004. The influence of organizational culture on attitudes toward organizational change. Leadership & Organization Development Journal, 25(2), 161-179.