Gateway Company

Customer support

Gateway customers have reported offputting experiences with the company's customer support , particularly with their digital cameras Service professionals report that parts and technical information are simply not provided for Gateway products, making third party post-warranty repairs difficult.

Business model

Gateway directly and indirectly sells its products to third-party retailers, consumers, businesses, government agencies and educational institutions.

According to the 2005 Annual Report, Gateway has three major business segments: Direct, Professional, and Retail.

* The Direct segment sells to consumers and small business customers using both the Internet and call centers.

* The Professional segment sells to medium-to-large businesses, educational institutions (K-12 and higher education) and government agencies (federal, state and local) using telephone-based and field sales teams, complemented by local, regional and national value added resellers and facilitated through customized websites.

* The Retail segment sells products directly to retailers, such as consumer electronics stores, computer superstores and warehouse clubs. eMachines branded PCs are sold exclusively through the retail channel.

According to the 2005 Annual Report, "The retail channel has become Gateway's largest distribution channel." Gateway used to run a retail chain of stores selling their products, however these were closed down in 2004.

Gateway competes mainly against Dell, Hewlett Packard, Apple Computer, Lenovo, Sony and Toshiba. In particular regions and outside the United States, Gateway competes with Acer, Fujitsu and Packard Bell.

Gateway has been under fire in recent years because of its lack of customer service and its misleading and disregard for their customers.

Organization

A Board of Directors of six people runs Gateway. Richard Snyder, former interim CEO, serves as Chariman on the board. Other board members include George Krauss, Douglas Lacey, Charles Carey, Joseph Parham, Jr and Quincy Allen. Shareholders elect the board members at meetings, and those board members who do not get a majority of votes must submit a resignation to the board, which will subsequently choose whether or not to accept the resignation. The corporate structure and management of Gateway extends beyond the board of directors.

On September 7, 2006 the Board or Directors announced the appointment of J. Edward Coleman as chief excutive officer. Coleman replaces Snyder, who served as interim CEO since February of that same year, and will remain Chairman of the Gateway Board of Directors.

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