Repeatability

A Well-Differentiated Core

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By contrast, Gateway was less systematic and not at all repeat-

able. It entered some countries by acquisition, others organically.

In some countries it built retail stores (not the direct model con-

cept), and in others it did not. In some markets, like New Zealand,

it purchased distributors to enter the market (also not a direct

model). It went after as many countries as it could handle, allowing

complexity to explode and engulf its economics. By the end of the

decade, Dell had been voted company of the decade, and Gateway

was in severe financial distress. Those close to the story see many

subplots that help explain this dramatic separation of fortunes,

but our view is much simpler. Gateway put growth ahead of ...