SUP 3033 –

Network Design
and Planning

SUBMITTED TO: - Jaison

Mathews
SUBMITTED BY: - Nandini
Student id: - C0715691
GATEWAY INC.
Gateway, Inc. manufactures and sells innovation items. The organization offers notebooks,
desktops, and screens, just as new parts and upgrades. It sells its items through retailers, e-
tailors, and divert partners in the
United States, Mexico, Canada, Japan,
and China, and markets in South
America and Asia-Pacific locales.
Gateway, Inc. was in the past known
as Gateway 2000, Inc. and, changed
its name to Gateway, Inc. in January
1998. The organization was
established in 1985 and is
headquartered in Irvine, California. As
of October 16, 2007, Gateway, Inc.
works as a backup of Acer
Incorporated.

GATE WAY COMPANY (IMPORTANT INFO.)

Public Company
Incorporated:1986 as Gateway 2000, Inc.
Sales: approximately $483 million. (2018)
Stock Exchanges: New York

Gateway company sells many products related to computers like desktops and screens.
gateway opens ways to the world of PCs. The organization, a backup of Taiwanese PC
producer Acer, sells desktop and compact PCs, just as netbooks, note pads, screens, and
related items. It additionally gives specialized help administrations to its items, just as for
gadgets items by different producers. The
organization sells through retailers including Best
Buy, Office Depot, Wal-Mart, Fry’s Electronics, and
Newegg, and different channel accomplices. Parent
organization Acer additionally advertises the
machines and Packard Bell brands, making it among
the top PC makers on the planet, trailing such
stalwarts as Hewlett-Packard, Lenovo, and Dell.
SWOT ANAYSIS OF GATEWAY:

• GOOD IMAGES •BAD COMMINICATIONS

• COST ADVANAGES •DISECONMIES OF SCALE
• ASSETS LEVERAGES •LOWER MARKET SHARE
• HIGH R&D •WEAK MANAGEMENT
TEAM
• MARKET SHARE AND •POOR SUPPLY CHAIN
LEADERSHIP

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

• FINANCIAL MARKET •COMPETITION

• INNOVATION •EXTERNAL CHANGES
• ACQUISITION •ECONOMICS
SLOWDOWN
• PRODUCT AND
•LOWER COST
SERVICES EXPANSION COMPETIORS

APPLE: -
Apple Inc. is an American multinational
corporation that design and markets
consumer electronics, computers
software, and personal computers.
Apple Inc originated from the
friendship and mutual interests of
Steve Woznick and Steve jobs. The two
collaborated in the development of the
“apple” in the early 1970.
Now, Apple is the recognized as the world’s largest information technology company in terms of
revenue, the world’s largest technology company in total assets and the world’s second largest
mobile manufacturer.

Company profile: -
 Established: - April 1,1976
 Founders: - Steve Woznick and Steve jobs
 Industry: -
 Computers hardware
 Software’s
 Electronics
 Digital distribution

MAJOR PRODUCTS: -
Apple TV
iPad
iPhone
mac (MacBook, mini, pro…... etc.)
iPod

EVOLUTION OF APPLE: -

VISION OF APPLE BY STEVE JOBS IN 1980’S

"Man is the creator of change in this world. As such, he should be above
systems and structures, and not subordinate to them."
The "official" mission statement on the Apple corporate
website: -
"Apple designs Macs, the best personal computers in the world, along with
OS X, life, iWork and professional software. Apple leads the digital music
revolution with its iPods and iTunes online store. Apple has reinvented the
mobile phone with its revolutionary iPhone and App Store and is defining
the future of mobile media and computing devices with iPad."

SWOT ANALYSIS

Strengths Weaknesses
• Strong brand image • High selling prices
• Loyal consumers • Pace of innovation
• Leadership position. • Limited distribution
• Wide range of network
products

Threats Opportunities
• Aggressive • Expansion
competition • Development of new
• Imitation product lines
• Rising labor cost in • Expand distribution
various countries network
Question 1: - Why did Gateway choose not to carry any finished-product inventory at its
retail stress? Why did Apple choose to carry inventory at its stores?
Answer: - Gateway decided to minimise the cost of transporting any finished product to the
retail stores. They make the product as per the customer demand and then send it to the
retail store. On the other hand, Apple chooses to open retail store and have there some
samples of the product so that
customer can see the product
and this strategy helps in
bringing more business to the
apple.

 The choice not to carry

any finished stock at its
retail locations depended
on two elements:
 allow most extreme
flexibility in item
configuration, and
 No need to keep stock at
the retail outlets.
 This flexibility in item
designs would enable the
organization to oversee
moves in client request
since the final item would just be arranged after the client places the order.
Given that the objective is to boost the inventory network excess (benefit), various
components were taken in thought so as to choose which office will create and send a client
request. The most critical factor is the cost, including generation and transportation cost to
the client. Different elements incorporate accessibility of creation limit and skill at a particular
office, different requests underway to the particular client or to clients close-by, and so forth.

Question 2: - Should a firm with an investment in retail stores carry any finished-goods
inventory? What are the characteristics of product that are most suitable to be carried in
finished-goods inventory? What characterizes products that are best manufactured to
order?
Answer: - It totally depends on the final product. If the transportation cost and the overall
cost of the product is too high, then it is avoided to be in the retail store inventory and
supplied on the demand but if the product cost is not so high and it is easy to assemble then
it must be in the retail store so that customer can get the actual view of the product before
purchasing it.

 Non perishable
goods can only be stored
 Goods that have
least possible storage cost
 When there is a
chance for the product price
increase

Question 3: - How does product variety affect the level of inventory a retail store must
carry?
Answer: - The product variety affect the level of inventory a store must have to a great
extent. If there are more
variants of a product or a
company is upgrading its
products as per the need of
the customer in a frequent
span of time, then inventory
must have all those new as
well as old products to display
so that customer can feel the
difference and decide which
suits the best to the customer.
 Higher variety
implies that more items must
be kept up at the store and
 accordingly, the amount of every item will be little.

Question 4: - Is a direct selling supply chain without retail stores always less expensive than
a supply chain with retail stores?
Answer: - The direct selling chain is less expensive that chain having retail stores, but it is not
profitable for
the long run.
As we can
analyse that
Gateway too
started with
the same
direct selling
concept and
initially it gains
business but
when Apple
came out with
the retail
stores concept
after a few
time Gateway
loses business because in retail stores customers can view the sample of the product and
they can then decide whether it fulfil their need or not rather than just explaining their
demand and then get actual product later.
Factors that are important to determine the cost are: -
1. The expenses of working a retail location in a region
2. The transportation and conveyance costs from DC to the clients
3. The nature of the products and the customer preferences in purchasing on the web
online or visiting a retail shop

Question 5: - What factors explain the success of Apple retail and the failure of Gateway
country stores?
Answer: - The factor that is responsible for the success of Apple and failure of gateway is that
gateway retail stores didn’t have any finished product and they are primarily responsible for
guiding the customer to select the configuration they want to purchase, or which best suits
the customer. Apple was the only retailer of their products, thus guaranteeing excellent
service across the board. When the customer needs the products, they get at store or online
so apply is easily available.
1. Excellent customer Services
2. Innovative Design
On the other
hand, Apple
stores also
help the
customer in
choosing the
right
configuration
and apart
from that
they too have
a finished
product in
their
inventory which helps the customer to actual feel the product and optimises its performance.
Finally, Apple is able to create a big brand loyalty that is very important factor to improve the
sales

SOURCES: -
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wM&tbnid=eD75lfYmm7rtNM%3A&vet=10ahUKEwjLiY28v8bhAhUSOK0KHU8gCOYQMwhB
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