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(单词翻译:双击或拖选)
1. Foundations and challenges of business
Facing Business Challenges at Gateway1 2000
From Farm Boy to Billionaire
Computers. The odds2 are slim you will survive, much less thrive, in this industry. You have to guess what customers will want more than a year in advance, even though technology is changing at an incredibly fast pace. It's hardly a business for cowboys-unless you're Ted3 Waitt.
Son of a fourth-generation cattle broker4 , Waitt (currently 34 and worth an estimated $1.7 billion) rides herd5 over Gateway 2000 . They tell stories about Waitt, and not just in Sioux City, South Dakota -Gateway's homeland. They talk about how he built a fortune by trusting his instincts and making gutsy calls that led the industry. How he borrowed $10,000 from his grandmother to start a mail-order computer business , and how he turned a two-man, farmhouse6 operation into a global giant-in only ten years. And they talk about the pony-tailed farm boy clad in deck shoes and a polo shirt who knew that someday he was going to run his own company.
It all began while Waitt was working for a local computer store; he was amazed by how easy it was to sell computer equipment to acknowledgeable computer users over the phone. So in 1985 Waitt (the marketer ) teamed up with his buddy7 Mike Hammond (the technical whiz), and the two started a small mail-order computer business of their own. Waitt and Hammond worked long hours-from their upstairs office in Waitt's family farmhouse.
Their big break came in 1987, when Texas Instruments (TI) decided8 to stop manufacturing its own computers and instead sell only industry-standard IBM-compatible personal computers (PCs). Of course, owners of TI computers could trade in their equipment for newer IBM-compatible computers, but first they would have to cough up $3,500. Waitt and Hammond knew they could provide the same computer equipment TI was offering-and at a much cheaper price ($1,955). They did this by finding the best deals on cutting-edge computer components9, and assembling the components to build top quality custom PCs . Because all sales were made-to-order and transacted10 over the phone , Gateway could afford to give customers more computer for their money-a strategy from which the company has never veered11 .
Within three short years, the company was shipping12 225 PCs a day (each one in a black-and-white cow-spotted box), and sales reached $70 million. By 1993 sales topped $1.7 billion, and the company sold its stock to the investing public. In spite of Gateway's speedy trip to the top, the company was at a treacherous13 intersection14 . Gateway was run essentially15 by one guy-Ted Waitt-who relied on his instincts. And the company was getting too big to depend on only one man's judgment16. In order to survive in this competitive industry, Gateway would have to find ways to expand its customer base and manage the company's growth.
If you were Ted Waitt, what steps would you take to beef up business ? Would you compete on price, speed, quality, or innovation? Would you consider other sales approaches besides telephone selling?
Meeting Business Challenges at Gateway 2000
Relying on his instincts, Ted Waitt made a number of critical calls that put Gateway in the lead. Of course, Waitt was no longer a one-man show. Beginning in 1991, he brought in experienced executives (from top companies like Digital Equipment, Texas Instruments, and IBM) to help manage the company's growth. Together they brought Gateway to new heights while sticking with its efficient, bare-bones assembly operation-no showroom, little inventory17, and no retail18 outlets19. In fact, Gateway's simple direct-sales operation allows the company to compete on speed, quality, and price.
Speed and quality in manufacturing give Gateway the biggest advantage. Not only can speed and quality win customers, but they win the right kind of customers-those who are willing to pay a bit more for computer equipment. Gateway moves like lightning: It gets new computers out the door in a hurry. They include all the latest technology-like top-quality color monitors, the latest operating system and software, and the most powerful computer chip.
Of course, buying a computer over the telephone and not seeing the equipment until the truck delivers the cow-spotted boxes to your doorstep is not for everyone. Gateway attracts computer-savvy buyers who need a lot less hand-holding and are comfortable purchasing from a catalog or an advertisement. Here's how it works: The customer calls in and, over the phone (or Internet), designs a custom-configured computer system using cutting-edge technology. In about five days, the custom system is built and shipped. Because there is no inventory to speak of (computers are made-to-order), as technology gets cheaper, Gateway can compete on price by changing prices daily and passing the savings20 on to customers.
Relying on word of mouth and a strong advertising21 campaign (about $90 million a year), Gateway rode a wave of success fueled by computer buyers hunting for good equipment at bargain prices. Gateway's success, however, did not come without its share of growing pains. Gateway's first portable laptop computer was a disaster. Failing to recognize that customers had to see and touch the product to appreciate its smaller size and capabilities22, Gateway ran into a wall because the company's computers were not sold in retail stores where customers could experience the product's features. This lesson would not be forgotten. Other mishaps23 included sending out machines that did not work and busy phone lines that kept customers waiting-sometimes for hours. Fortunately, Waitt corrected these problems early on by instituting various quality-control measures to increase customer satisfaction. And his efforts paid off. By 1996 Gateway was shipping 5,000 to 6,000 computers daily and sales skyrocketed to roughly $5 billion.
That same year Gateway launched a product that was way ahead of its time. Called Destination, it was a combo PC and 31-inch television set with a wireless24 keyboard, a mouse, and a home-theater sound system. Learning from past mistakes, Waitt knew he would have to get the product in front of consumers so that they could see its features. This time Gateway cut deals with retail stores. None had ever carried Gateway's stuff before.
But Waitt's biggest challenge has been trying to crack the corporate25 market. Whereas Gateway sold most of its computers to individual users and small businesses, rival Dell set its sights on the lucrative26 Fortune 1000 corporate accounts and made some expensive investments-like $22 million in research and development (Gateway spent practically zip). Despite doubling its sales force, Gateway discovered that selling computers to corporate customers was not an easy task. First of all, competitors like IBM and Hewlett-Packard (HP) have large, well-trained sales and service staffs who have been doing business with big companies for years. Furthermore, IBM and HP products can be purchased at traditional retail stores.
Still, relying on a cost-efficient, bare-bones, direct-sale operation is Gateway's stronghold in this cutthroat industry. The company has no plans to alter its fundamental selling strategy. "If you come see us in the next century, we'll be bigger, better, and smarter, but fundamentally we'll be the same," notes Waitt. That is, Gateway will stick to what it does best: churning out huge volumes of PCs that are equipped with the latest technology at affordable-but not rock bottom-prices and selling them to customers over the phone.
1 gateway | |
n.大门口,出入口,途径,方法 | |
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2 odds | |
n.让步,机率,可能性,比率;胜败优劣之别 | |
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3 ted | |
vt.翻晒,撒,撒开 | |
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4 broker | |
n.中间人,经纪人;v.作为中间人来安排 | |
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5 herd | |
n.兽群,牧群;vt.使集中,把…赶在一起 | |
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6 farmhouse | |
n.农场住宅(尤指主要住房) | |
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7 buddy | |
n.(美口)密友,伙伴 | |
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8 decided | |
adj.决定了的,坚决的;明显的,明确的 | |
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9 components | |
(机器、设备等的)构成要素,零件,成分; 成分( component的名词复数 ); [物理化学]组分; [数学]分量; (混合物的)组成部分 | |
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10 transacted | |
v.办理(业务等)( transact的过去式和过去分词 );交易,谈判 | |
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11 veered | |
v.(尤指交通工具)改变方向或路线( veer的过去式和过去分词 );(指谈话内容、人的行为或观点)突然改变;(指风) (在北半球按顺时针方向、在南半球按逆时针方向)逐渐转向;风向顺时针转 | |
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12 shipping | |
n.船运(发货,运输,乘船) | |
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13 treacherous | |
adj.不可靠的,有暗藏的危险的;adj.背叛的,背信弃义的 | |
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14 intersection | |
n.交集,十字路口,交叉点;[计算机] 交集 | |
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15 essentially | |
adv.本质上,实质上,基本上 | |
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16 judgment | |
n.审判;判断力,识别力,看法,意见 | |
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17 inventory | |
n.详细目录,存货清单 | |
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18 retail | |
v./n.零售;adv.以零售价格 | |
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19 outlets | |
n.出口( outlet的名词复数 );经销店;插座;廉价经销店 | |
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20 savings | |
n.存款,储蓄 | |
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21 advertising | |
n.广告业;广告活动 a.广告的;广告业务的 | |
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22 capabilities | |
n.能力( capability的名词复数 );可能;容量;[复数]潜在能力 | |
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23 mishaps | |
n.轻微的事故,小的意外( mishap的名词复数 ) | |
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24 wireless | |
adj.无线的;n.无线电 | |
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25 corporate | |
adj.共同的,全体的;公司的,企业的 | |
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26 lucrative | |
adj.赚钱的,可获利的 | |
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