Gateway Makes Transition To Acer’s Business Model

By Dee Chisamera
13:41, July 28th 2008
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Gateway Makes Transition To Acer’s Business Model

Gateway, subsidiary of Acer Inc., is going through a transition at the moment, as it is working on establishing a stronger position on the North American market. The company revealed at the end of last week that it will stop selling PCs through its website, instead relying on Acer’s business model, which focuses on retailers, online retailers and telephone-based channel partners.

The change is meant not only to simply the company’s current business model, by offering consumers the more effective ways to purchase Gateway products, but also to align to Acer’s business strategy, which is primarily based on an indirect model, as Mark Hill, Acer Group U.S. General Manager pointed out in a statement.

At the same time, Gateway is counting on the new indirect model to deliver significant cost savings that will later result in an improved value proposition to their customers.

“Customers can rest assured that they will continue to get the award winning products and outstanding technical support they’ve come to expect from Gateway for the last 23 years,” said Hill, while adding that the Gateway products will be available through thousands of retail stores, as well as online and telephone-base channel partners across the U.S. and abroad.

As the new changes come in, there will be some staff cuts, as Lisa Emard, Gateway spokeswoman pointed out. The process will be gradual, as the company evaluates each department and function, she explained.

Hill also added that as the only top-tier PC company without a competing U.S. direct sales force, their commitment to the channel is unparalleled in the industry. Best Buy, Circuit City, CompUSA, Costco, Newegg, HSN, Tiger Direct, Office Depot, OfficeMax, and Wal-Mart are just few of the retailers and e-tailers to sell Gateway products.

Gateway is now relying on a business model that proved to be successful for Acer. At the same time, the parent company is hoping to redirect some of the consumers from rivals such as Hewlett-Packard and Dell.



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Tags: Gateway, Acer
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