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Cattle? Computers? Same difference Gateway (formerly Gateway 2000) combines Midwestern thrift and common sense with the latest in computer technology. Started by college dropout Ted Waitt in 1985, Gateway has grown into the nation's second-largest direct marketer of personal computers. Perhaps Gateway's greatest asset is its ability to market itself as a folksy, eccentric alternative to other "faceless" producers. In addition to the cow-like boxes, Ted Waitt's own approachable public persona, with his ponytail, blue jeans and sandals, was a friendly face to present to the public. Formerly based in North Sioux City, SD, Gateway emphasizes its heartland location by printing all of its packaging and promotional material with black cow spots. Gateway went public in 1993 with a listing on NASDAQ. In December 1999, Waitt stepped down from his position as CEO and named president Jeff Weitzen his successor. A direct way of seeing things Gateway bases its corporate philosophy on the belief that retail customers will buy personal computers much more readily if they can bypass large markups, avoid a confusing array of dealers, and receive superior service directly from the manufacturer. Starting in 1995, before online sales were widely profitable, Gateway became the first computer maker to sell PCs on the web. By marketing Gateway computers as a simpler and less-costly alternative, Waitt steadily steered the company to the forefront of the market. Gateway remains the No. 2 direct marketer of computers overall, behind Michael Dell and his eponymous company. Dell's philosophy - not to mention his incomplete college education - is very similar to Waitt's. The biggest difference lies in their customer bases. Dell is number one in corporate and government markets, whereas Gateway sticks mainly to home computer buyers and small businesses. In an effort to continue its growth, Gateway has begun aiming at larger businesses. Gateway has also had its own internet access service, gateway.net, since 1997. The company was the first PC-maker to bundle its own access service with its computers, and had 400,000 members by mid-1999. Asia and beyond Although roughly 85 percent of Gateway's business is restricted to the U.S. and Canada, major efforts are underway to expand the company's potential customer base. Gateway expanded into Australia and New Zealand by purchasing 80 percent of that area's largest computer maker. The company also opened a manufacturing facility in Malaysia and a sales and support operation in Japan. Gateway has had facilities operating in France, Germany, and Ireland since the mid-1990s. Keeping the beat alive Gateway moved its corporate offices to San Diego, CA from the cornfields of South Dakota in a 1998 move that took some employees and loyal customers by surprise. The move was part of Ted Waitt's desire to expand his clientele and increase revenues. As part of this plan, Gateway introduced the "Your Ware" program in June 1998 to allow customers the ability to lease a new multimedia PC with free unlimited Internet access for a low rate and the ability to trade in old PCs for a new one after 24 months. The program is the first of its kind among large computer companies such as Gateway. Waitt also joined the board of the online music distributor, MP3.com in March 1999 with the eventual hope that Gateway will benefit from the digital music revolution. He integrated www.spotshop.com into the Gateway web site as well. The web site consolidates 30,000 computer related products into one easy site and is aimed at making shopping on the net much easier for customers. Gateway My Yahoo!, a co-branded web site between the two companies, was also launched in April 1999, giving equal access to both company's web sites for gateway.net customers. In the 275 Gateway storefronts, the company now offers training classes for digital photography, music, and personal finance. It's a group effort Gateway signed an agreement with Lockheed Martin Integrated Business Solutions Company in May 1999 which allowed the company to create 164 Gateway Business Solutions Centers to help solve computer problems for business owners, educational institutions, and federal, state, and local governments. Furthermore, in the same month, Gateway invested $200 million in Internet investment company CMGI Inc. Gateway's aim is to use CMGI's resources to develop more Internet-based products since most customers are now purchasing computers to gain Internet access. In October 1999 Gateway entered into a partnership with AOL that garnered the computer company $800 million. Together, the companies hope to develop internet devices such as "AOL TV", which will deliver interactive fun through television sets. Some joint products planned for release in the 2000 Christmas season include a flat panel display for the kitchen that will allow people to look at recipies online as they cook. AOL has taken over gateway.net. Gateway has allied itself with leaders of several industries to expand its business. Sun Microsystems now refers customers to Gateway in exchange for the Sun Portal Pack Webtop application being loaded into Gateway's computers. Office Max is closing its computer departments in 1000 stores across the nation to make room for the Gateway stores which will be installed inside Office Max by early 2001. Gateway also has alliances with Lucent Technologies, Nortel Networks, and Broadwing. Gateway is attempting to to move beyond its identity as a PC maker and branch out into wireless and mobile devices, besides the services they now offer. CEO Jeff Weitzen predicts that by the end of 2000 non-PC profits will make up 40 percent of Gateway's total income.
Gateway places most of its new employees in North Sioux City, South Dakota. The company posts job listings on its recruitment web page accessible from the company web page at http://www.gateway.com. Applicants can submit their resumes via fax or regular mail, or use an on-line resume form available on the web page. While many positions require degrees in technical fields such as computer engineering and web development, Gateway also offers entry-level opportunities in marketing and sales. If human resources personnel like the look of your resume, you can expect a phone interview. The duration of these interviews varied from "about five minutes" to "over half an hour." Employees say "they asked simple DOS and Windows questions, also simple questions about memory." If the phone interview goes well, the company brings you to its North Sioux City headquarters to talk in person. The interview process takes "a single day" and consists of a session "with an HR representative, then a technical session - either panel format or individual interviews with about three different developers - and finally an interview with a supervisor or manager."
Gateway to the future Employees rave about Gateway's "fast-paced" corporate culture and say the company's recent "explosive" growth makes them proud. "Gateway creates a climate in which we all feel like we are contributing to its success," says one employee. This growth, however, has engendered some temporary "confusion" about corporate lines of communication and authority. "One area many people find frustrating is the lack of organization in some areas," according to one insider. "Gateway has grown so rapidly in the past 12 years that policies and standards haven't quite kept up." True Midwestern values Some employees, however, find this "hectic" atmosphere quite "exciting." Gateway has "growing pains," they say, only because the company has "accomplished so much in an extremely short time." They are still pleased that the company is "down home and informal." Employees display the corporate values like a badge of honor. Well, actually, it is a badge: "We all wear a 'Gateway Values' laminated badge attached to our ID badges that lists our corporate values." Through these values, the company retains the "attitude of the Midwest. One strange thing is that there are a lot of family members working with each other." Long-term benefits While pay varies widely, employees "love the generous stock options" which they earn after one year, and find that the "monthly profit-sharing checks are great," and "come in especially handy around Christmas time, when the checks tend to be larger due to increased sales volume." On a deeper level, the profit sharing makes them "feel like owners and not just employees." Also, "after one year of employment, you begin earning stock options, which are free to you and can be exercised anytime within the next 10 years." Other perks that come with working at Gateway include "special deals on computers and software" and "discounts at local businesses." Gateway's vacation plan isn't the hottest, though: "five days the first year, 10 the next, 15 after three years," according to one insider. The catch? "Sick days are included in those vacation days." Out in the boondocks Surprise! Few employees mentioned living in South Dakota as a perk. Instead they found it "bearable" and "relatively inexpensive," but "at times isolated" and "undeniably in the middle of nowhere." However, one transplanted Californian gave the 120,000-strong community that spans Iowa, Nebraska and South Dakota rave reviews. "The locale is surprisingly scenic, not anything like I initially pictured Iowa. We have a brand new art center, theater, modest symphony, numerous parks, and assorted minor league sports. If you're into the outdoors, the area can be particularly appealing, with hills, trees, river bluffs, hiking and biking trails, camping, fishing, hunting, horseback riding, all just a few minutes from the main parts of the city." Slightly concerned Some insiders say that Gateway, "isn't for everyone." But most say they "love it" and some that they "couldn't go anywhere else." Complaints have little to do with the company culture or atmosphere but instead with the "specter of layoffs." Employees are "fearful" after the cutbacks in September and "anxious there may be more to come." While it may not be for everyone, insiders say there are "no minority problems." One employee remarks, "I work with Hispanics, people who came from India, blacks, Native Americans, vegetarians - you name it. We respect each other and value our diversity." Casual, but not offensive All those groups can wear what they want as well, since "about the only attire not allowed here is torn, tattered clothing and T-shirts with objectionable messages." "If you see someone here in a suit and a tie, he's probably a visitor," according to one employee. But informal does not mean lax. Employees say Gateway will "push you to your true potential. If you're not afraid of thinking and working outside of 'normal' schools of thought, you'll fit right in."
Human Resources
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