|Gateway's Country Stores Keep Stock Price Afloat |
The company's "beyond the box" sales initiatives are winning over Wall Street.
Thinking Outside the BoxGateway's strategy over the past three years has been to think beyond the PC box. After Gateway introduced the Country store concept in 1996, it developed gateway.net, the company's own ISP service, in 1997. In 1998, Gateway launched its YourWare program, a financing plan that allows customers to upgrade to a new PC and return the old unit to the company. The triple strategy is winning plaudits everywhere. "Of all the PC guys, Gateway has this business best figured out," says Jeff Matthews, a money manager with Ram Partners. Matthews, who doesn't have a Gateway position because of valuation concerns, points out that Gateway's Country stores are built to sell computers and that's it. "I had only planned on buying one PC when I went there, but I ended up buying two," says Matthews.
|Gateway's Country Stores|
|Selling PCs out of the barn|