Gateway computers

The purpose of this paper is to provide a concise and clear economic analysis of our company; Gateway. In order to form a thorough economic analysis several aspects of Gateway will be described. These aspects are our firm’s history, product line, consumer base of its industry, production process, cost of manufacture and overall pricing of its products. By also analyzing the position that Gateway holds in its industry and the challenges it must overcome to successfully compete against other computing manufacturing companies. Gateway’s history will provide a base context for future analysis. The variation of Gateway’s product line will develop our understanding of our firm’s consumers through analyzing its consumer demand, cost, pricing and production decisions. By applying the microeconomics we are able to understand the manufacturing process and the production costs involved. Through analyzing Gateway’s merger with eMachines we are able to explain how Gateway’s production process has changed and its costs decreased. Furthermore, the application of economic theory enables us to identify our industry and its top competitors. The concentration ratio shows us what percentage of total industry output is attributed to the four largest companies in the industry; this allows us to define the market structure in which Gateway operates. Another aspect of our analysis that we address throughout this research project is the key challenges of our firm and how our firm deals with them. A main challenge our firm has faced is its increasing net losses. In response, Gateway has merged with eMachines to decrease its production and labor costs.
In order to analyze our firm, Gateway, we must form a solid background on the firm’s history, founding motives, and future goals. Apart from these basic facts, we also need to comprehend the industry in which our firm is operating in and its role in the...

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