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Technology Stocks : Gateway (GTW)
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To: Skeeter Bug who wrote (4923)12/4/1997 1:24:00 PM
From: Tmanquinn  Read Replies (2) of 8002
 
Apparently, you are short sighted in what seems to be GTW's evolving strategy. As you and Steve have indicated, GTW cannot compete in price due to manufacturing cost structure. What GTW is seemingly attempting is a market differentiation strategy in which GTW is positioned as the best product, rather than the "cheapest" product. This is a great move long term, as the T.V./P.C. markets begin to overlap. When I go to buy a phone or T.V., I want to see SONY on the label. Panasonic can take their 20% savings and shove it up their transistor. Competing with Compaq/HP/Packard Bell on price would probably be suicide. I'm getting somewhat optimistic at this point that they're current marketing strategy is on the money for long term goals. I can only hope it works. If total unit sales continue to increase, I say we will see a substantial bump in the price.
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