Dell AnalysisDespite Dell's direct model strategy, the company had lost any pricing advantage over its competitors. Dell also encountered a problem with channel inventory availability as competitors attempted to replicate their strategy. This was a significant threat to the organization as it relied heavily on just-in-time delivery of parts. Dell's competitors, however, faced many challenges with the direct distribution method. According to Exhibit 8 of the case ("Ratings of PC Vendors by Business Executives Responsible for PC Purchasing"), channel-based support was rated lowest on all scales, which which shows that this was also the riskiest area for Dell. The strength lies in the perfection of the Direct Model, which benefits from a production process that lasts only one and a half days, which allows the company to serve customers quickly and withstand very large orders. Dell held no inventory of finished goods, which helps reduce idle assets and risk. The company had excellent relationships and communications with suppliers who were able to adhere to Dell's just-in-time inventory management and allowed suppliers to send shipments directly to customers, reducing inefficiency. Dell encouraged suppliers to locate their facilities near assembly operations. Additionally, Dell had very high levels of customer service and support satisfaction and maintained some of the best performance metrics in the industry. Finally, their primary source of revenue came from businesses and large government institutions and no single customer accounted for more than 2% of their sales, reducing their purchasing power risk. One of the...... middle of paper of the company. ....rosoft operating systems), so if the relationship between a particular supplier and the company goes sour, companies can look for other suppliers to do business with. There is also little difference in the suppliers' products. Overall analysis of the attractiveness of the industry Overall, the IT industry is relatively attractive. The potential for future growth is high, but new competitors must face the threat posed by well-established and well-known brands. There are relatively few substitutes for computers, and the power of suppliers and buyers is weak. The new businesses would likely be able to generate profits. Companies have enjoyed some success in this sector throughout its history. However, it is important that all companies in the sector are able to keep up with the constant evolution of cutting-edge technologies. **Article is based on a Harvard Business Review case study.**