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One reason Dell’s competitors were unable to respond to challenge posed by Dell’s strategy in the 1990’s was that responding by implementing their own direct-to-customer distribution approach created channel conflict in their existing distribution models. Traditionally, Dell’s competitors sold their product via downstream partners such as retail chains, integrated resellers and other third party distributors. In attempting to replicate Dell’s Direct Model, other manufacturers saw a negative reaction from the distribution partners – creating an adverse effect on existing sales. This made it riskier for Dell’s competitors to initiate a direct distribution model.
In addition, simply initiating a direct distribution channel was insufficient to mount a challenge to Dell. Dell’s advantage did not lie just in distribution, but in the numerous services it provided to its corporate clients, such as online account management and ordering, high levels of customization,......

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Approximate Word Count: 294
Approximate Pages: 2 (250 words per double-spaced page)

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