Environmental Analysis of Dell OrganizationIndustrial EnvironmentCompetitive RivalryDell's competitors include: Hewlett-Packard, IBM, and Sun Microsystems (Hoovers). HP and IBM pose the biggest competitive threat. Dell's sales overview increased every year except from 2001 to 2004. In 2001, annual sales in millions were $31,888 and a significant increase in sales in 2004 to $41,444.0. (Hoovers). In terms of barriers to entry, Dell's direct-to-consumer approach has increased sales every year and they will soon be among their top competitors. With this approach, Dell has entered this highly competitive market in a unique way. The biggest barrier to entry that Dell faces when entering the technology industry is allowing customers to gain trust in the company over the more popular veteran IT companies. However, many competing companies use different suppliers. Competitor Sun Microsystems' annual sales are lower than those of Dell. They offer an online service where customers can order servers and personal computers. They stand out from the rest of the organizations in that they do not use the Microsoft operating system, which is a weakness compared to the others. Sun does not view Dell as a major competitor, but rather as Dell; they view Microsoft as a major competitor alongside Hewlett-Packard and IBM. That being said, Dell is moving in the right direction and sales are increasing significantly over time as mentioned above and competition exists between companies and that is what makes Dell unique. The increase in sales between 2001 and 2004 proves the success of the organization. Operating Environment Consumers view Dell as a quality, value-priced brand. Some consumers find that Dell's competitors may be a little more expensive but still offer a quality brand. The company plans to launch a sales campaign – “Dell on Ice” – which will offer 15% off its Blade Center system and its top x440. terminate the Intel server. (Shankland). Dell ranks highly among customers because the company offers free technical support when needed. The purchasing process has changed for consumers with Dell as all orders are made online, providing more convenience to its customers and minimizing inventory. The flow of materials from suppliers to Dell begins with the company placing orders to factories based on two categories. . These two categories are product type and geography.