In mid-1999, for example, Gateway formed a strategic alliance with GE Capital Information Technology Solutions to gain access to GE's corporate customers among the Fortune 1,000. The alliance with GE Capital ended as Gateway badly missed sales expectations for the last three months of 2000. In January, founding chairman Ted Waitt returned as chief executive. He replaced top management, slashed expenses and refocused the company on its core PC business. For example, Parks said Gateway has been retraining its business sales representatives to work more closely with roughly 300 stores that Gateway operates throughout the United States.
Some indicators suggest the new strategy is a step in the right direction.
Less than two weeks ago, when Gateway posted massive losses in its financial results for the first three months of 2001, Wall Street analysts noted that business sales offered a rare glimmer of encouragement. Compared with the same period last year, Gateway's consumer sales were down 19 percent, European sales fell 38 percent and Asia was down 32 percent.